Valentine’s Day just passed, and it makes some people think about love and relationships. Some think about spouses, children or their favorite causes. The idea of love and relationships can be exciting. However, when you add money into that equation it can make the topic of love and relationships more emotional and complex. At Cypress Wealth Services our mission is to bring confidence and clarity to your financial life. As part of that commitment we are focused on educating you on all topics that may affect you and your financial life. For better or worse, we get to witness the good and bad of love and money. In this month’s Your Second Growth Newsletter we discuss the most common areas where love and money exist and the best tips for each.

Gifting Strategies

From our experience, gifting money starts with a person’s love of something. It is usually a family member, a friend, or a favorite cause. Whomever the recipient, gifting is an important goal for many people. The most common gifting strategy is to give away the maximum amount allowable under the annual federal gift tax exclusion. In 2019, you can gift up to $15,000 to as many people as you wish without those gifts counting against your lifetime exemption. Also, by staying under the annual limit the amount does not need to be reported to the IRS and no gift tax will need to be paid. These gifting amounts can change year to year as legislation changes, so it is important to consult your tax professional. To learn more about this strategy and others we have attached a great article from Charles Schwab, here.

Love and Marriage

Unfortunately, life doesn’t always go as planned and that is very true when it comes to love and marriage. Divorce is common in today’s world and can pose financial issues. Even if the divorce is amicable, the stress of splitting assets, income, and potentially moving is very real. Our advice is always to do your best to stay calm and organized. Don’t make any big financial decisions during a divorce or in the months to follow. Leverage your network of loved ones to help you follow the guidelines above. We have attached a couple of great articles below that highlight great tips for dealing with divorce. If you have questions or needs on this topic, we are always here to help.

7 Ways to Prepare Your Finances for Divorce - Click here.

Tips to Maintain Financial Sanity During a Divorce - Click here.

The Gift of Life in a Book^®

For years we have discussed Life in a Book^®. We believe financial organization will lead to greater financial clarity, better decision-making, and a place for loved ones to understand your full financial and life picture. Whether single or married it can help you day-to-day with your life. If you are married or you plan to leave a legacy to loved ones it will help you communicate what you have amassed and where to find it. We believe Life in a Book® is a tool that can make a difference and show yourself and those you love how much you care. The beauty of Life in Book® is it doesn’t cost you any money. Just your time and energy to organize it. If you would like help or a copy of the workbook, please contact us anytime.

Provided as information only and should not be considered investment, tax or legal advice or a recommendation to buy or sell any type of investments. Advisory services are only offered to clients or prospective clients where our firm and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by our firm unless a client service agreement is in place. Form ADV contains important information. This form is publicly available and may be viewed here.