As temperatures drop in Southern California, the Weatherly crew spent some time making blankets for our furry friends down at the San Diego Humane Society! SDHS is always accepting donations of new or gently used blankets, pillow cases, flat sheets and towels to help make the shelter cozy as pets await their forever families! For a full list of donatable items, or to learn about other ways to give to the humane society, please visit https://www.sdhumane.org/support-us/ways-to-give/wish-list.html
This holiday season, Weatherly partnered with Crisis House to sponsor a family in need’s Christmas celebration as part of their “Gifts of Gold – Hope for the Holidays” program. Crisis House is local organization that works to stop the cycle of domestic violence and homelessness and connect individuals and families to critical resources and programs. Learn more about Crisis House here: https://crisishouse.org/
The WAM crew offered well wishes, water, and red vines as Susan G. Komen walkers began their annual journey in Del Mar. This 3-day long fundraiser walk benefits Susan G. Komen, an organization which is on a mission to end breast cancer. The money raised by the Komen 3-Day has been used to save lives and make huge strides in breast cancer research. Throughout the year, the Weatherly team supports and empathizes with our nearby and extended communities impacted by breast cancer. Read more about the walk and how you can get involved here: https://www.the3day.org/site/SPageServer?pagename=about25
The Weatherly Crew had the privilege of volunteering with Father Joe’s Villages, in two different capacities this year! As part of Father Joe’s wider mission to serve San Diegans experiencing homelessness and poverty, Weatherly team members first volunteered with the Franklin Antonio Public Lunch Program serving free warm, nutritious meals to the public, and then again with the Father Joe’s “Super Pantry” – a food distribution hub where individuals and families can receive emergency groceries and resources. Learn more about ways to get involved with Father Joe’s Villages here: https://my.neighbor.org/
A few members of the Weatherly crew had the opportunity to tour Helen Woodward Animal Center and spend the afternoon volunteering in their resale store. Helen Woodward was founded in 1972 with the aim of providing educational and therapeutic programs for people, as well as humane care and adoption for homeless animals. You can learn more about the center at https://animalcenter.org/
November brings colder weather, fantastic food and attention to GIVING. While the centerpiece at the Thanksgiving table may be a gravy dish, the conversations around the table may focus on Giving.
Giving can be categorized in three main areas.
- Thanks – There’s a whole day dedicated to giving thanks, which gives us the opportunity to recognize and reflect on the important things in life. As Weatherly celebrates our 30th anniversary this year, we would like to express a warm “Thank you” to all our clients who make what we do so special.
- Time – Volunteering at charitable organizations is a great way to give back without dishing out money. This act of kindness can be highly personal and can strengthen communities. By year end, our team will have supported 30 local causes- either by volunteering time or philanthropic and industry sponsorships. See some ways WAM has supported areas in need in our Culture & Community page.
- Assets –There’s often a funding shortfall that charities could use to purchase products and services to support their mission. The rest of this blog will focus on strategies for giving financial assets to charity.
When it comes to giving assets, there are several ways to give in a tax advantaged way. Our prior blog – WAM’s Guide to Giving, goes into detail on some of the strategies but we highlighted a few of the most common ways below:
Donor Advised Fund (DAF) – Is a tax efficient charitable account designed to simplify giving to 501c3 organizations on a centralized platform.
Tax Efficiency – Contributions to the fund may be tax deductible in the current year for those who itemize deductions on Schedule A. Furthermore, if contributing long term highly appreciated stock, then the capital gains are eliminated instead of taxable if sold in a brokerage account.
Flexibility – While some donors choose to grant the proceeds in the DAF out to charities immediately, others chose to wait for a future year(s), allowing for tax-free growth.
Simplify – A centralized platform allows quick reference for giving history and makes it easy to track down tax documents for deduction purposes.
Qualified Charitable Distributions (QCD) – allows individuals over the age of 70.5 to send up to $105K (limits for the 2024 calendar year) directly to a qualified charity (or charities) through their IRA. These distributions are not included in taxable income and can be beneficial for those taking Required Minimum Distributions (RMD) and/or claiming the standard deduction.
Estate Planning and Charitable Giving
There are a few strategic ways to leave money to charity as part of an estate plan. One potential option is listing a charity or Donor Advised Fund as a beneficiary to a retirement account. Prior to the SECURE act that passed in 2019, IRAs and other qualified retirement plan beneficiaries that inherited an account could take their mandatory Required Minimum Distributions (RMD) throughout the rest of their life – known as a Stretch (inherited) IRA. Beginning in 2020, the new law states that most non spouse beneficiaries that inherit a retirement account must deplete the account within 10-years. With distributions taxable at your income bracket and consolidated into only 10-years, many individual beneficiaries are pushed into higher tax brackets than before the SECURE act, which may greatly deteriorate the inherited assets. For those who are philanthropic that would like to give money to charity at their death, may consider listing a charity or Donor Advised Fund as a beneficiary to a retirement account rather than in a trust or other nonretirement account. Charities pay no income tax so 100% of the IRA value is retained by charity. Individuals that have nonretirement assets like a living trust, may consider listing human beneficiaries rather than charities given the potential step up in cost basis at death. The beneficiaries would benefit from a tax perspective receiving these assets instead of an IRA.
Those who wish to set aside larger sums of money for charities, may consider using a charitable trust as a planning tool. While this requires some upfront costs and an attorney, a charitable trust can provide a current year tax deduction, fulfil charitable intentions and remove assets from a taxable estate. Two of the more common charitable trusts are Charitable Remainder Trust (CRT) and Charitable Lead Trust (CLT). While both these types of trusts benefit charities in some form, we see CRTs as a popular option when interest rates are higher as it can generate a higher current deduction than CLTs. A Charitable trust strategy pairs well in a high-income year, such as a sale of a business or home. We also see opportunities in CRTs for those with concentrated securities that have a large taxable estate but would like to retain an income stream during their lifetime. Unless the Tax Cuts and Jobs Act (TCJA) receives an extension under the new administration, we may see an uptick in CRTs with a lower estate exemption amount starting in 2026.
Giving Together
While a lot of the strategies around giving focuses on individuals, we have seen an emergence of family giving. This allows families to support organizations that they believe in together while also exposing the next generation to philanthropy. Some families choose to allocate a dollar amount to each family member and a DAF can help streamline the process. Programs like Fidelity’s Gift4Giving, makes it easy for others to participate giving from your DAF even from afar. Family philanthropy is a great way to keep the family connected and involved in the community.
In Summary –
Thanksgiving brings to light the importance of giving in a number of areas. While giving is a year-round activity, Giving Tuesday on December 3rd 2024 gives donors an opportunity to support charities and satisfy their gifting before the end of the year.
Our team of advisors are here to explore which giving strategy may be most appropriate for your philanthropic goals.
Wishing you and yours a Happy Thanksgiving!
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
Weatherly Asset Management was established in October of 1994 as an independent investment advisor focused on wealth management. Looking back, the world as we knew it in the Fall of 1994 is nearly unrecognizable. In the 30 years since Weatherly was founded, we have seen the meteoric rise of the internet, adapted to 5 different presidential administrations, witnessed the launch of 4 out of 5 FAANG stocks, weathered a global pandemic and much more. While life is certainly different these days, one thing that has not changed is Weatherly’s comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and accessibility to experts on our team. In this month’s blog, we reflect on the past 30 years of WAM and how the world has changed with us.
The Weatherly Approach
Weatherly was founded 30 years ago with the same core pillars we have today – customized investment management and comprehensive planning for clients. Our accounts are managed with each client’s specific situation and goals in mind, utilizing individual stocks and bonds to maximize returns and tax efficiency. Our approach to financial planning has evolved with changing policies and market conditions over the past 3 decades, encompassing tax, family, and business planning and philanthropic strategies as well as wealth and estate guidance.
Our ultimate goal is to create meaningful impact in our clients’ lives so they can focus on their families, business and community.
THE FIRST 10 YEARS 1994-2004
In the early days of Weatherly, equity values grew exponentially as internet-based technology companies dominated the stock market. This period of massive growth and significant change set the stage for Weatherly’s beginnings. The Firm closing out its first decade serving 136 families with $100 million in assets under management.
WEATHERLY’S TEEN YEARS 2004-2014
The second decade of Weatherly brought us household terms like “Gmail” and “iPhone” while we watched as both U.S and international markets experienced high levels of volatility during the 2008 global economic crisis. Netflix began its transition to streaming and Bitcoin shuffled cryptocurrency into the mainstream.
WAM’S ROARING TWENTIES 2014-2024
The mid-2010s-20s ushered in a new era at Weatherly, we added 4 Partners to Firm leadership, underwent a full rebrand of our logo and website, and made impactful advancements in technology infrastructure, but we weren’t the only thing changing. The past 10 years were filled with “unprecedented events” including Brexit, the rise of meme stocks, a global pandemic and much more.
Celebrating 30 Years
In honor of our 30th year in business, our team has dedicated extra time and resources to the growth and welfare of our community. To keep up with our community involvement, you can check out our Culture & Community page.
Donor Advised Fund
Weatherly annually gives back approximately 1% of net income via our Donor Advised Fund. This year each member of our team selected two charities to receive funds, for a total of 30 donations in addition to our regular annual commitment.
Event Sponsorship and Community Involvement
By year end, our team will have supported 30 local causes – either by volunteering time or philanthropic and industry sponsorships. We’ve given back in areas of food insecurity, environmental clean-up, and child and animal welfare amongst others and the continued development of our professional colleagues.
Thank You
Our team is very proud to celebrate our anniversary with the clients, colleagues and community that made our mutual success possible.
We were thrilled to host some of our clients at our 30th Anniversary Client Appreciation Event at Powerhouse Community Center in Del Mar for an evening of wonderful food, drinks and even better company. Thank you to all who were able to make it out for the evening, we wouldn’t have wanted to celebrate any other way!
** The information provided should not be interpreted as a recommendation, no aspects of your individual financial situation were considered. Always consult a financial professional before implementing any strategies derived from the information above.
A few members of the Weatherly Crew got the opportunity to kayak Batiquitos Lagoon in Encinitas as part of their annual lagoon cleanup & fundraiser. The waters of Batiquitos Lagoon are typically closed to boating, so it was such a privilege to explore the area via kayak, while gathering trash harmful to its delicate ecosystem. A big thank you to the Batiquitos Lagoon Foundation for putting on such a great event, and for your continued dedication to the stewardship of the lagoon. You can learn more about the foundation and their ongoing work at their website: https://batiquitos-lagoon-foundation-142729.multiscreensite.com/
Weatherly was proud to help sponsor Just in Time’s annual “Pathways to Financial Power” conference. This event aims to help transition age foster youth achieve financial stability through networking, career exploration and resources as well as a “Shark Tank” inspired competition where program participants can secure funding by pitching their business ideas to a panel of judges. In addition to our sponsorship, Andrea Taylor is volunteering as a 1-on-1 coach for JIT’s Financial Fitness 102 program this fall. The eight-week program helps participants build personal finance skills in budgeting, saving, investing, credit, loans, and cybersecurity, while working towards establishing an emergency fund for long-term financial stability. Learn more about Just in Time for Foster Youth at: https://jitfosteryouth.org/
Weatherly Asset Management, L.P. was included in the 2019 Financial Times 300 Top Registered Investment Advisors list. This list was published in print and online on FT.com, on June 27, 2019. View our inclusion on the list here.
The selection process for the Financial Times 300 (“FT 300”) is based on the largest independent Registered Investment Advisors across the United States that meet the below criteria:
To qualify as a candidate for the FT 300, an RIA firm must:
- Manage at least $300 million in assets under management (as of 12/31/18)
- Have no more than 75% of its practice’s assets be institutional
- Be independent (it cannot be the RIA arm of a broker-dealer, for example)
Financial Times invited more than 2000 SEC registered RIA companies across the US who reported $300mm or more in AUM to participate in the review process. Some 740 RIAs applied, and 300 made the final list.
Qualified RIAs were required to fill out an online application, and were evaluated on several factors including AUM, AUM growth rate, years the firm has been in existence, industry certifications of staff, SEC compliance report, online accessibility and other factors such that the final list should include a diverse range of practice types. AUM comprised roughly 70 to 75 per cent of each adviser’s score, while asset growth accounted for an average of 15 percent.
Additionally, FT capped the number of companies from any one state. The cap was roughly based on the distribution of millionaires across the US. The research was conducted on behalf of the Financial Times by Ignites Research, a Financial Times sister publication.
The 300 firms were listed by state and alphabetically by business name. Weatherly paid Financial Times for custom hard copy reprints and digital access after the list was published. Wealth managers do not pay a fee to be considered or placed on the final list.
No organizational memberships were required of the Firm or individuals. Inclusion on this list is not representative of any one client’s experience and is not indicative of Weatherly’s future performance. Weatherly is not aware of any facts that would call into question the validity of the list or the appropriateness of advertising inclusion in this list.
About Weatherly Asset Management, L.P.
Weatherly Asset Management, L.P. is a Registered Investment Advisor, located in Del Mar, California, dedicated to providing high quality, holistic and innovative wealth management services to high net worth individuals, small businesses and institutional clients since inception of the Firm in 1994.
Our comprehensive approach to all aspects of a client’s financial life, the extensive experience of our principals, and the accessibility of experts, set us apart from other firms.
Our primary business focus is money management, with each account individually managed to maximize wealth preservation and growth over time. We also provide advice related to retirement planning, tax planning, philanthropic planning, financial planning and college planning, as well as estate planning and wealth transfer guidance. Our goal is to provide clients with as much information as necessary to effectively manage portfolios and help achieve their financial goals.
Weatherly Asset Management, L.P. is the investment advisory division of Weatherly Asset Management, Inc. As an independent partnership, the Firm is wholly owned and operated by the partnership.
For information on our wealth management team, and for a full list of services we provide, please visit: http://www.weatherlyassetmgt.com/team/
For information on our ADV filings and Compliance, please visit: http://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=106935
http://www.weatherlyassetmgt.com/adv/
If you would like to learn more, please contact:
Carolyn P. Taylor
858-259-4507