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Weekly Economic Update: October 8, 2023

A Friday rally overcame a shaky week, sending stocks mostly higher.

The Dow Jones Industrial Average slipped 0.30% for the week. Meanwhile, the Standard & Poor’s 500 gained 0.48%, and the Nasdaq Composite index added 1.60% for the five trading days. The MSCI EAFE index, which tracks developed overseas stock markets, fell 2.37%.

Three Smart Ways to Give to Charity

As we head into that last few months of 2023, you may be considering a year-end donation to a charitable cause important to you. Charities and non-profits fill a much-needed gap left by the government and public sector to provide needs for human services, education, environment, religion and so much more.  According to a report by Giving USA, 64% of donations in 2022 came from individual donors, 21% from foundations, 9% from bequests, generally through a will or estate plan, and 6% from corporations.  

Here are three ways to support the charity of your choice while also benefitting yourself.

Donate Investments – One way is to give appreciated stock directly to the charity.  Let’s say you bought 100 shares of Apple at $40/share in a non-retirement account. If you sold and gave the cash to the charity, you’d have a $17,800 Capital Gain to be taxed, (based on the today’s price).  That would diminish the after-tax amount to give.  Instead, donate the shares of Apple directly to the charity where you get the full appreciated price to write off on your taxes, the charity can sell the shares tax free to do the great work you’ve grown to love, a win-win for both.

Two additional smart giving options are Qualified Charitable Distributions and Donor Advised Funds...

Tax Tip: When was the last time you checked your withholding status? 

The Internal Revenue Service (IRS) has a handy tool called the Tax Withholding Estimator, which can help you manage having too much or too little tax withheld from your wages.

The tool can also help you determine if you must complete a new W-4 to submit to your employer, complete a new W-4P, or make additional payments to the IRS. It does this by estimating your annual income, how many children you claim for the Child Tax Credit and Earned Income Tax Credit, and other items that may affect your yearly taxes.

Before using the Tax Withholding Estimator, gather all necessary documents; this includes your W-2 from your employer, any 1099 forms you have from banks and other payers, and any other forms you need. Gathering as much information as possible will help because the estimator will only be as accurate as the information you enter.

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.  Tip adapted from IRS.gov

October 19: Capstone Social Hour 

You don’t have to give up positive returns to invest for a positive impact. Join us for a fun and informative evening at the Sustainable Investing Social Hour! Whether you're a seasoned investor or just curious about sustainable finance, this social hour is the perfect opportunity to connect with like-minded individuals and gain valuable insights.

Capstone Office: 615 N Nevada Ave, Colorado Springs, CO
Thursday, October 19, 6:30-8:00 PM

Drinks and Appetizers by Chef in Boots
 

Student Video Contest: 

What economic advice would you give to your mayor?

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com