Author: Gregory Weimer

  • Strategic Charitable Giving Made Simple: A Guide to Qualified Charitable Distributions and Donor-Advised Funds

    For charitably inclined individuals, giving isn’t just about generosity—it’s also about strategy. With careful planning, your philanthropic efforts can go further, both in terms of impact and tax efficiency. Two tools often underutilized are IRA Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs). When used together or independently, they offer powerful ways to amplify the tax benefits of charitable donations.

    What is an IRA Qualified Charitable Distribution?

    An IRA Qualified Charitable Distribution allows individuals aged 70½ or older to donate up to $108,000 annually from their traditional IRA directly to a qualified charity—tax-free. The limit is indexed for inflation and can change each year; for 2025, the maximum is $108,000. This strategy is especially valuable for those subject to Required Minimum Distributions (RMDs) who do not require the funds to sustain their retirement lifestyle.

    Benefits of IRA QCDs:

    • The distribution counts toward your RMD but is excluded from taxable income, lowering your adjusted gross income (AGI).
    • Reducing your AGI may have a positive ripple effect on Medicare premiums and Social Security taxation.
    • It’s a direct and efficient way to support the causes you care about without itemizing deductions.

    What are Donor-Advised Funds?

    A Donor-Advised Fund (DAF) is a charitable investment account, managed by a sponsoring organization, that allows you to make contributions, receive an immediate tax deduction, and route grants to your favorite charities over time.

    Key advantages:

    • Immediate deduction: You can contribute in a high-income year for maximum tax relief, then distribute the funds gradually.
    • Donation of Appreciated Shares: Donating appreciated securities (such as stocks) directly to charity allows you to avoid paying capital gains tax while still receiving a charitable deduction for the fair market value of the asset.
    • Investment growth: Contributions can be invested and grow tax-free, increasing your potential for long-term giving.
    • Flexibility: You choose when and where the grants go, without the administrative burden of managing a private foundation.
    • Privacy: DAFs allow for anonymous giving if desired.

    The Strategic Power of Combining Both

    While you can’t use QCDs to fund a Donor-Advised Fund directly (per IRS rules), you can use these tools in tandem to optimize both your current and future giving:

    • Use QCDs to satisfy RMDs and support charities directly in the near term, reducing taxable income.
    • Use DAFs for planning larger or future gifts, especially during high-income years, to maximize itemized deductions.

    This dual approach can give you the freedom to strategically time your donations for both personal tax advantages and philanthropic impact.

    How a Wealth Management Firm Can Help

    Understanding how to structure your giving—especially across multiple vehicles like IRAs and Donor-Advised Funds—requires personalized insight.

    Confluence Financial Partners can help clients:

    • Evaluate the tax benefits of charitable donations in the context of their broader financial plan
    • Strategically time and structure gifts for maximum impact
    • Set up and manage Donor-Advised Funds
    • Coordinate with tax and legal professionals to ensure compliance and efficiency

    Our approach is tailored to your unique financial goals, values, and legacy aspirations. Whether you’re new to charitable giving or looking to enhance your current strategy, we’re here to help your generosity flow with intention and intelligence.

    Let’s Talk About Your Giving Strategy

    If you are curious how to integrate IRA distributions and donor advised funds into your financial plan, Confluence Financial Partners can help you explore how your generosity can go further—with clarity, purpose, and confidence.

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

    •

    Gregory Weimer

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  • Understanding the Role of a Registered Investment Advisor (RIA) and What It Means for You

    When it comes to financial planning and investment management, selecting the right advisor is one of the most critical decisions you can make. One term you may frequently encounter is “RIA,” which stands for Registered Investment Advisor. But what does that really mean, and why is it important for those seeking professional financial guidance?

    Understanding an RIA

    An RIA is a firm or individual registered with the Securities and Exchange Commission (SEC) or a state regulatory agency, depending on the assets under management. RIAs provide financial advice and investment management services while adhering to strict regulatory requirements designed to protect investors.

    At Confluence Financial Partners, being a Registered Investment Advisory means that we are committed to transparency, personalized service, and, most importantly, acting in our clients’ best interests.

    The Fiduciary Standard: Acting in Your Best Interest

    One of the most significant distinctions of an RIA is the fiduciary duty it upholds. As fiduciaries, RIAs are legally and ethically required to prioritize their clients’ financial well-being above all else. This obligation includes:

    • Providing objective advice
    • Fully disclosing any potential conflicts of interest
    • Ensuring recommendations align with each client’s financial goals

    At Confluence, our fiduciary responsibility guides financial strategies and tailors them to your unique situation, helping you pursue goals with confidence.

    What to Expect When Working with a Registered Investment Advisor

    Choosing to work with a Registered Investment Advisor like Confluence Financial Partners provides several opportunities:

    • Personalized Wealth Management: We take the time to understand your specific needs and aspirations, crafting customized financial plans and investment strategies.
    • Transparent Fee Structure: Our compensation model is designed to align with your success, with no hidden commissions or incentives.
    • Objective Advice: As fiduciaries, we are committed to offering independent, research-driven financial guidance that is in your best interest.
    • Regulatory Oversight: With strict SEC or state regulations in place, RIAs are held to high standards of accountability and client care.

    What This Means for Confluence Clients

    For clients of Confluence Financial Partners, our status as a Registered Investment Advisor represents a commitment: our commitment to act with integrity, to provide prudent guidance, and to help you achieve financial confidence. We embrace our fiduciary duty because we believe that trust is the foundation of every successful financial relationship. Whether you’re planning for retirement, growing your wealth, or navigating complex financial decisions, you deserve an advisor who is not only experienced but also required to put your best interests first.

    Take the Next Step with an RIA You Can Trust

    If you’re looking for a financial partner who prioritizes your goals and well-being, we invite you to start a conversation with Confluence Financial Partners. Let’s work together to build a strategy that aligns with your vision for the future.

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

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    Gregory Weimer

    •

  • Smart Tax Strategies to Keep More of Your Income in 2025

    As we enter the new year, don’t wait to implement tax strategies that could improve your financial situation. For investors, smart tax strategies can mean keeping more of what you earn and maximizing the value of your portfolio. Here are some key approaches to consider as you plan for 2025:

    1. Maximize Tax-Advantaged Accounts*

    Contributing to tax-advantaged accounts like 401(k)s, IRAs, and Health Savings Accounts (HSAs) can reduce your taxable income. For 2025, the 401(k) contribution limit is $23,500 for those under 50, with an additional $7,500 catch-up contribution for those 50 and older. A new provision allows individuals aged 60 to 63 to make an enhanced catch-up contribution of $3,750 in addition to the traditional catch-up contribution, providing a significant opportunity to boost retirement savings during those critical pre-retirement years.

    Traditional IRAs also allow for tax-deferred growth, and contributions may be deductible depending on your income and retirement plan coverage.

    Roth accounts, while funded with after-tax dollars, offer tax-free withdrawals in retirement—a great option if you expect to be in a higher tax bracket later.

    2. Utilize Qualified Charitable Distributions (QCDs)**

    If you’re 70½ or older, a Qualified Charitable Distribution (QCD) allows you to donate up to $108,000 directly from your IRA to a qualified charity. This strategy not only satisfies your Required Minimum Distribution (RMD) but also reduces your taxable income. By directing funds straight to the charity, you avoid having the distribution counted as part of your Adjusted Gross Income (AGI), which can help minimize taxes on Social Security benefits or Medicare premiums. This approach is particularly advantageous for retirees who wish to support charitable causes while managing their tax liabilities efficiently.

    3. Gift Appreciated Securities

    Instead of donating cash or selling investments to give proceeds, consider gifting appreciated stocks or mutual fund shares directly to family members or charities. By gifting to family members in lower tax brackets, they may pay significantly lower taxes on the capital gains, or possibly none at all, depending on their income level. For charitable donations, you can deduct the fair market value of the securities while avoiding the capital gains tax you’d incur if you sold them. This dual benefit maximizes the impact of your gift while offering meaningful tax savings. It’s a smart way to reduce the tax burden on highly appreciated assets.

    4. Be Strategic with Municipal Bonds

    Municipal bonds, often referred to as “munis,” offer a reliable source of tax-free interest income at the federal level. If you purchase bonds issued by your home state, you may also avoid state and local taxes. For high-income earners, the tax-equivalent yield of municipal bonds can be more attractive than taxable bonds, especially if you’re in the highest federal income tax brackets. Additionally, municipal bonds are generally considered lower-risk investments, providing steady income without increasing your taxable income—a win-win for those seeking both stability and tax efficiency. Whether you should own taxable or tax-free bonds, however, is unique to each individual and should be analyzed as such.

    5. Stay Informed on Tax Law Changes*

    Tax laws are dynamic, and staying informed helps ensures you’re prepared to adapt your strategy to new opportunities or avoid pitfalls. The individual tax cuts introduced under the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025 unless new legislation extends them. This includes potential increases in individual income tax rates, a reduction in the standard deduction, and a lower threshold for estate tax exemptions, which may revert to pre-2018 levels—around $7 million per individual instead of the current $14 million. By monitoring legislation, you can adjust your portfolio and tax strategies proactively.

    Take Action Now

    The key to effective tax planning is proactive management. By leveraging these strategies, you may be able to reduce your tax bill and keep more of your income in 2025. Don’t wait until the end of the year to start planning! Schedule a consultation with one of our experienced wealth managers today to discuss personalized strategies that align with your financial goals.

    Sources:

    *https://www.morningstar.com/personal-finance/your-tax-fact-sheet-calendar

    **https://www.schwab.com/learn/story/reducing-rmds-with-qcds#:~:text=What%20are%20the%20QCD%20limits,charitable%20gift%20annuity%20(CGA).

    Confluence Financial Partners does not provide tax advice. You should consult your own tax advisors before engaging in any transaction.

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

    •

    Gregory Weimer

    •

  • Exit Planning: 5 Important Points for Business Owners to Consider

    Exit Planning is an extremely important concept for business owners.

    What is Exit Planning you may ask?

    The conventional definition is it is the creation of a plan and strategy to ultimately transfer or liquidate the ownership of a business. This definition, however, is too rigid in our opinion and focuses on the end goal rather than the process. We believe Exit Planning is vital to business owners, even if they are not considering an imminent sale of their business.

    The planning done today increases the value in a business tomorrow. Exit Planning or “value creation” is not a one-time event and should always be part of the business strategy.

    As Certified Exit Planning Advisors (CEPA), we have leveraged the Exit Planning Institute’s program to expand our knowledge in this area. The following are important points for business owners to consider:

    • The Exit Planning process should begin a minimum of 3 years prior to a potential transfer. Value creation is a process that takes time.
    • To improve your business, ask yourself every 90 days whether you are figuring out how to grow or whether you are preparing to sell.
    • There are numerous exit options. Make sure you understand all of them. There is sometimes value where you do not expect!
    • Business attractiveness is not necessarily exit readiness. A business can be attractive to potential buyers, but have a management team or business that is not ready to transfer for a variety of reasons. Determine what is needed to increase readiness.
    • Surround yourself with the right advisors and consultants. Build your value creation team. This should consist of professionals such as accountants, attorneys, financial planners, and business brokers all who have experience in Exit Planning.

    If you have any questions about the future of your business or know of someone who may find value in a discussion, please let us know.

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

    •

    Gregory Weimer

    •

  • 3 Signs It’s Time to Talk to a Financial Planner

    Are you thinking about hiring a Financial Planner? If you’re under 45, this is a must read…

    By: Gregory Weimer, CPA and Chuck Ziants, Wealth Managers

    Managing your financial affairs and planning for retirement can be daunting no matter who you are or what your situation is. If you’re like most people, your mind has 60,000-80,000 thoughts per day that could range from paying off debt or planning a vacation to of course… what am I going to have for dinner tonight. The financial aspects of your life such as budgeting, saving, and planning for retirement often get pushed to the side in favor of the thoughts that have more of an immediate impact on your daily life. This is completely normal, but a major mistake that people of all ages make. The earlier you begin to get your financial affairs in order, the easier it will be down the road. Your older self will be thanking your younger self one day!

    In our opinion, there are three fundamental reasons when it might be time to talk with a financial planner. Notice, we said the word “might”, this means that if you have had any of the following three thoughts or concerns you should at the minimum have a phone conversation or meeting with a planner. It’s important to determine if it is the right fit before you jump in with both feet.

    • You need a basic roadmap to achieve your short, intermediate, and long-term goals.

    At a high level, the financial planning process consists of helping you determine your goals, develop a plan, and invest in a way that will meet those goals. Although investments are the primary focus of most financial planners, that is not the only service offered. Through the financial planning process, you will be able to tighten up your budgeting/cash flow, plan for major life events such as having children or purchasing a new home, and put yourself in a position to meet your retirement goals. A financial planner can take all of your information and talk with you about ways to meet those goals.

    • You’re not a “money or numbers person”.

     Not everyone understands finance or enjoys following the S&P 500 and that is perfectly fine! That’s what financial planners are here for. There is a reason that they chose the profession they did. Just as some people want help in managing their finances, a financial planner looks to a doctor for medical advice. Having someone else help manage your finances can allow you to spend more time doing what you love.

    • You have a handle on your finances, but need a non-emotional third party.

    There’s no question about it – investing and financial planning is emotional! Wouldn’t it be nice to have an unrelated party who has your best interest at heart available to you as a sounding board while you go through major life events? Want that shiny new car? Great, it can be helpful to get a neutral opinion from your financial planner. In addition, studies by DALBAR have consistently shown that the average equity investor receives a much lower return than what the actual equity market return was for the same time period. Why is that? Emotions. The individual investor often makes emotional decisions while investing that on average do not result in the best outcome.

    At this point of the article, you may have already decided that you want to speak with a financial planner. Then, thought number 60,001 comes into your head… “What do I even ask a planner when I have a conversation?”. This is another potential roadblock on the path to improve your financial life. Please see below for some helpful tips when talking with a prospective advisor.



    A financial relationship is based around trust and feeling comfortable with the other party. When you walk out of each meeting with a financial professional you want to have the feeling of confidence that they are putting you and your family’s needs first.

    There are benefits to receiving professional advice, but choosing someone to work with can be difficult and we understand that. Here at Confluence Financial Partners, you will receive professional advice that is customized for your financial goals.

    If you are interested in speaking with us in greater detail, please contact us at Gregory.Weimer@ConfluenceFP.com or Chuck.Ziants@ConfluenceFP.com

    [i] https://www.successconsciousness.com/blog/inner-peace/how-many-thoughts-does-your-mind-think-in-one-hour/

    Gregory Weimer
    About the Author

    Gregory developed a passion for the financial services industry early in life, drawn to the meaningful impact investing and thoughtful financial planning can have on people’s lives.

    McMurray

    724-271-8801
    gregory.weimer@confluencefp.com
    Email Greg

    •

    Gregory Weimer

    •