This time of year, many of us are feeling extra generous and want to show our loved ones how much we care.
In many cases, that means spoiling them with gifts and nights out at a show or a nice restaurant.
All of those expenses can add up, and no matter how good our intentions are, that spending can quickly turn into debt you're saddled with in the New Year. To try and help, we've put together a list of ways you can give to your loved ones without breaking the bank.
Shop online to get lowest price
While Black Friday sales may be behind us, there is plenty of saving to be had through the rest of the holiday season. According to Consumer Reports, items like headphones, wireless speakers, smart watches and tablets are all on sale during December.
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We also recommend doing any shopping you can online to make price matching easier and help you get the best price out there. An added bonus is that many websites offer fast, free shipping near the end of the year to help alleviate concerns about gifts coming in after the holidays are over.
Give gift of time
One great way to save money is to give your loved ones the gift of your time. If you're someone who works long hours or lives far away from family, you may find that simply taking the time to prepare a home-cooked meal or traveling to visit loved ones means more than an expensive present ever could.
Of course, you may still want to bring a gift with you, in which case we suggest bringing something with sentimental value, like a framed photograph of you with your loved ones, a handmade present or something that can remind your loved ones how much you care when you aren't able to spend as much time with them during the year.
Give gift of stocks
If you have been a savvy investor and feel confident that you have more than you need for retirement, giving the gift of stocks can be a great option as well. Not only will your love ones be able to use that income during their retirements, including any dividends it continues to accrue, that gift helps to minimize your taxable estate. If your taxable estate is in the range where estate taxes may apply at the end of your life, shrinking that estate down will also help your loved ones avoid paying large sums of tax when that time comes.
If you're nearing 70.5, you're getting close to the time where you'll need to make Required Minimum Distributions. If you have more money than you need to live on in your tax-deferred accounts, gifting stocks from that portion of your portfolio can help to minimize unneeded Required Minimum Distributions income, potentially keeping you from stretching into a higher tax bracket. This strategy can get to be a little complicated, so we suggest discussing your options with a financial adviser before making stock gifts this year.
No matter how you choose to show your loved ones how much you care, we hope you and yours have a wonderful rest of the year.
