The Best Way to Maximize Charitable Tax Deductions in 2026 Might Be to give in 2025
Article written by Brandon Smith, Barron’s
New rules in the One Big Beautiful Bill Act (OBBBA) will fundamentally alter charitable tax deductions beginning Jan. 1, 2026—particularly for high-net-worth individuals and couples who itemize.
Essentially, there is now a “floor” and a “ceiling” for charitable giving deductions. The floor means gifts totaling less than 0.5% of adjusted gross income will no longer be deductible starting in January. That means in order to receive a charitable deduction, the 0.5% AGI threshold must be exceeded by charitable gifts. In other words, on an AGI of $1 million, at least $5,000 must be donated to charity to realize any charitable deduction at all.
As for the ceiling, taxpayers in the highest income tax bracket will find their charitable deduction benefit capped at 35% starting in 2026, rather than the 37% they currently enjoy. For example, a high earner in the highest tax bracket (in 2026, $640,600 for individuals or $768,700 for married couples filing jointly) making a $10,000 charitable donation would receive a tax deduction benefit of $3,500 in 2026, rather than the $3,700 they would receive in 2025. So, if those taxpayers wait to make donations to charity until 2026, the tax deduction benefit will essentially be lowered by 5.4%.
The solution for high-income clients seeking the greatest possible tax benefit on their charitable donations while avoiding the floor or ceiling deduction limitations starting in 2026 might be simple: Maximize charitable giving before the end of 2025. Again, those who itemize their tax deductions will receive a 100% deduction for 2025 charitable donations that are within the AGI limitations—60% for cash gifts and 30% for noncash gifts to public charities.
With the window of today’s more favorable charitable deduction rules rapidly closing, connect with your financial advisor to review the strategy that best fits your situation. Whether through gifts of appreciated securities, donor advised funds, or charitable remainder trusts, acting before the end of 2025 may be important to accessing the full spectrum of deductions available before the OBBBA takes effect next year.
holiday scams to watch out for in 2025
Article written by Bob Niedt, Kiplinger
Holiday scams are everywhere—from your email inbox to the line at the ATM to travel and shopping sites.
There are several types of gift card scams you may encounter, and all of them end with you losing money. Always, but especially during the holidays, remember not to buy gift cards on public kiosks or racks. And when you do buy a gift card, make sure that the cashier hands you the gift card they activated.
No matter what time of year it is, follow these best practices:
- Don’t buy gift cards on public auction sites or racks that anyone can access, because they may have already been activated and used.
- Don’t trust anyone selling gift cards for less than they’re worth, because they might be trying to scam you.
- Don’t listen to someone telling you that you can pay your bills with gift cards.
- Don’t share your gift card numbers with other people.
The holidays are a big season for phishing scams. From shopping to parties to traveling, you might get a call from someone asking you to confirm something. While that text might be from a family member, friend, or new coworker, it could also be a part of a phishing scam.
Phishing can be difficult to spot, but knowing how scammers try to steal your information helps reduce your risk. Common types of phishing include:
- Social engineering: When a scammer tries to trick you into revealing personal or financial information by appealing to your emotions.
- Hyperlink manipulation and site redirects: When fake websites use scam hyperlink text or forced redirects to spam sites to carry out phishing attacks.
- Link shortening: By concealing a site’s true URL until you’ve already navigated to it, scammers can use link shortening services to hide their true, malicious intentions.
- Typosquatting: By building a fake site on a domain with a similar name to a trusted brand, scammers can fool you into giving up personal information.
- Chatbots and AI voice generators: With chatbots on fake websites or messenger apps, or AI voice generators on phone calls, cybercriminals can try to manipulate you into exposing private data.
In a grandparent scam, a scammer will pretend to be a relative (usually a grandchild) of an older person to extract personal information or money from them. These scammers sometimes send emails or texts claiming to be a family member in trouble. Other times, a scammer will call and pretend to be a member of a law enforcement agency and claim that their grandchild will be arrested if they don’t pay a fine.
To avoid getting scammed like this:
- Don’t provide any information or money to anyone who isn’t the person they claim to be.
- Hang up on the caller and call the family member or the law enforcement agency the caller claimed to work for.
- Delete the messages they’ve sent or block the numbers and email addresses to ensure they don’t try to scam you from the same address.
Brushing scams sound like a victimless crime—a company sends you a bunch of free stuff that you get to keep—but it could be an early sign of identity theft. For these scammers to send you goods, they have to know your name and address. While they might have found that information on a people search site, they may have found your info through a data breach.
If you receive any unwanted packages, contact the marketplace (usually Amazon) to let them know you received items you didn’t order. Check your bank and credit card statements for charges you didn’t make. And consider locking or freezing your credit report in case more of your information is compromised.
The holiday season is one of the busiest travel periods. Trips can get expensive as lots of people try to get good flight tickets, hotel rooms, and rental cars. That means scammers are ready to pounce with travel booking scams, using fake travel websites and too-good-to-be-true prices for holiday travel.
When you’re making travel reservations online, it’s best to:
- Use sites that you already know and trust.
- Double-check your URLs to make sure you’re not on a spoofing site.
- Check to see if the site has a physical address and that their customer support phone number works.
- Read online reviews of the travel sites to see if other people have gotten scammed.
It might come as a surprise, but stolen packages are a big problem. One study found that 79 million Americans have had at least one package stolen in the past year. That same study found a big uptick in “porch piracy” around the holiday season. Having a package stolen might be an inconvenience, but it could also be a sign of identity theft.
To reduce the risk of having your orders stolen:
- Set up a temporary delivery hold.
- Have your packages delivered to a secure parcel locker.
- Set up deliveries to arrive when you know you’ll be home.
- Request packages to be delivered to a neighbor.
- Make delivery drivers require a signature before leaving a package.
- Install security cameras.
If somebody stole your package, contact the merchant and the delivery service to report the theft. You may also have to file a report with your credit card company or bank, and the merchant or delivery company may require you to file a police report before they ship a replacement or issue a refund.
Charity scams are especially frustrating—you try to donate to people in need only to line the pockets of a scammer.
Before donating to a charity, make sure your money will go where you want it to go.
Double-check that you’re not falling for a charity scam by:
- Researching charities before donating: Go to the charity’s site and read online reviews to make sure it’s legit (and to ensure they’ll use your money responsibly).
- Not donating via links sent by text or email: It can be tempting to click on a link, especially when you’re feeling generous during the holidays, but it might be an attempt to phish you.
- Making secure donations: Charities don’t ask for cash donations, gift cards, or wire transfers. Donate by credit card or check and keep good records to make sure they aren’t overcharging you or charging your card each month.
Scammers can create near-perfect clones of online stores to scam people out of money. Website spoofing is a multi-pronged approach to fraud: a scammer buys a domain close to the domain of a real online store and then builds a fake, lookalike site that can capture your personal and payment information.
Once they build the site they can wait for people to land accidentally on the misspelled domain, or they can send out emails advertising a sale or giveaway to entice people to visit their site.
There are a few ways to check whether or not a site is real:
- Hover over hyperlinks to see what URL they will send you to.
- Use your favorite search engine to get to the real store.
- Look for security features like an SSL certificate.
- Examine the site for grammar and spelling mistakes.
Are Travel Rewards Credit Cards Worth It?
Article written by Berit Thorkelson, AARP
Even for the most casual travelers, travel rewards credit card offers are undeniably appealing. Typically, you score thousands upon thousands of miles just for signing up, then earn more for every dollar spent on the card.
Cheap or free travel appeals to anyone, including the 46 percent of travelers age 50 and older who planned to fly this year, according to AARP’s 2025 Travel Trends survey. Its attractiveness grows during tough economic times and when you’re on a fixed or tightening budget.
You’re probably thinking: Surely, it’s not that simple. Satisfy that healthy skepticism with a breakdown of the mysterious world of travel rewards cards to explore whether using one could be worth it for you.
Who should consider a travel rewards card?
Anyone who travels once or twice a year, or is considering doing so, could benefit from a travel rewards card, says Jason Steele, a credit card and travel rewards expert and author of the book Travel for Free.
Sara Rathner, credit cards expert at NerdWallet, agrees. “Maybe you’re retiring and you’re looking at traveling more, and you’d like to save money so you can take more vacations for the same price. It absolutely could be beneficial to look into travel rewards credit cards,” she says.
Both Steele and Rathner caution that travel rewards cards tend to have high APRs, so be sure you’ll be able to pay off the balance in full monthly. Any interest charged could quickly offset the card’s benefits. You should have a strong financial standing, with good or excellent credit and no existing credit card debt.
What’s the best travel rewards credit card?
Rathner’s pat response to this question: “I don’t know. What are you looking for?” She’s not being snarky. One travel rewards credit card does not fit all. Analyze your spending habits and travel goals first, then find the right-fit card for you.
Weigh these key aspects:
- Sign-up bonus. Our insiders see value in getting a card for the large influx of initial miles or points. Steele’s father, for example, was able to take Steele’s daughter on a grandpa-granddaughter trip to Europe thanks to an especially generous bonus — traveling in business class, no less. Ensure the initial spending mandate — typically a specific amount of money within a definite timeframe — is achievable for you without having to carry a balance.
- Spending rewards. Do not manufacture spending, Hernandez says. Instead, consider where you already spend, and pick the card that nets you the most points or miles for that existing spending.
- Annual fee versus card benefits. Think of the annual fee as prepayment toward the card’s provided benefits, but only if they are ones you’ll actually use or enjoy, Rathner says.
Top benefits of travel rewards cards
Here are some of the cardholder benefits prized by the three experts we spoke with:
- Airport lounge access. “Airport food is so expensive,” Hernandez says. With “the cost of what I eat and drink in the lounge, I would have spent well over $100 every time.” Be sure the airport you use most frequently has the card-provided lounge.
- Travel insurance. This buys peace of mind and negates the need for add-on trip insurance. Think: lodging in the event of delays, reimbursement for nonrefundable tours, and clothes if your bags are delayed or lost. “I travel a tremendous amount.… I’ve never purchased a travel insurance policy,” Steele says. “I’ve always relied on the benefits of my credit cards to cover me.” These cards often offer protection on non-travel purchases as well.
- Rental car insurance. Steele considers this the most valuable perk, since it allows you to skip the protection offered by rental companies, which averages around $30 a day.
- Travel credit. Make an eligible travel-related purchase, such as car rentals, train tickets, hotels or airfare, according to the card’s terms and conditions, and you get a reimbursement in the form of a statement credit. For example, Rathner’s card recently reimbursed her $300 for high-speed train tickets in Spain, which alone offset over half her credit card’s annual fee.
Will applying for travel credit cards hurt my credit score?
If you can pay off the cards on time each month, you could improve your credit score. Keep in mind that your credit score may take a temporary hit with a hard credit pull; however, if you space out the openings, maintain good credit and are responsible, your score could improve. Steele appreciates being able to mix and match card benefits. “If you can manage juggling multiple cards and keeping an eye on the card’s terms and conditions as things change, if that’s enjoyable for you, then do it,” Rathner says. “If you find it annoying or confusing, then I would caution against it.” Also: Put some time between openings. “We typically say, two to three months,” Hernandez says.
Wills and Trusts Aren't Enough in the Great Wealth Transfer
Article written by Leslie Gillin Bohner, Kiplinger
Families need to prepare their heirs through communication and with financial know-how, or all that money could end up causing confusion, conflict and costly mistakes.
In the next two decades, the largest intergenerational wealth shift in history will unfold.
Baby Boomers and the Silent Generation are transferring assets at a pace never before seen. Cerulli Associates estimates that about $84 trillion will change hands in the U.S. through 2045, with $72 trillion flowing to heirs and nearly $12 trillion going to charity.
Numbers this large can dominate the headlines, but the real story is about preparation and protection. Families who believe they’ve completed their estate plans once the technicalities, such as documents, valuations and tax strategies are in place, might be overlooking critical risks.
Without further steps, heirs might face confusion, conflict or costly mistakes. Those who go further to invest in communication, education and shared purpose might avoid common pitfalls and turn inheritance into a lasting legacy.
Start while you’re living
One of the most powerful ways to protect family wealth is to prepare heirs before they inherit. Families who wait until death to hand down responsibility often leave heirs without the experience or judgment needed to manage wealth wisely.
By contrast, sharing wealth — and decision-making — during your lifetime creates a controlled environment for learning, growth and risk reduction.
Make lifetime gifts part of your wealth plan. Instead of waiting for a full inheritance, gifting a manageable amount of cash or stock allows heirs to practice stewardship.
In family businesses, small equity stakes help the next generation learn operational and governance responsibilities, reducing the risk of disruption later.
Tie transfers to life milestones. Linking wealth to achievements such as graduating college, landing a first job or completing financial training provides natural opportunities to build maturity.
These standards help prevent premature or mismanaged transfers.
Involve heirs in philanthropic decisions early. Giving younger family members the responsibility to allocate charitable funds teaches disciplined decision-making and values alignment, reducing the risk of misaligned giving or disconnection from purpose.
By integrating these practices, families can help ensure that heirs have tested their decision-making, experienced consequences in a safe setting and built the confidence needed to manage larger sums — all before the full estate is transferred.
Prevent conflict with clear, updated plans
Having legal documents in place is essential — but not sufficient. Failure to keep them updated or to clearly communicate plans to heirs is one of the most common causes of estate disputes, legal delays and unintended outcomes.
Engage wealth advisors early. Working with legal, tax, and financial professionals ahead of time allows for thoughtful, iterative planning — avoiding rushed decisions in crisis moments.
Update documents after major life or financial events. A marriage, divorce, new grandchild or business change can render old plans obsolete, leading to misallocations or disputes. Regular reviews help keep intentions aligned with current reality.
Provide heirs with a clear inventory and instructions. Without access to key documents or understanding of how to manage complex assets such as real estate or private businesses, heirs can be left vulnerable to costly mistakes, delays or litigation.
Clarity eliminates ambiguity. When heirs understand the plan and where to find everything, transitions are smoother, legal risks are minimized and conflict is less likely to arise.
Break the silence around money
Many families avoid talking about money, hoping to protect harmony and keep heirs motivated to build their own successes. But silence can lead to confusion, mistrust and division.
Open, structured communication is one of the most effective ways to reduce the risk of future conflict.
Schedule regular family meetings. These create a cadence of transparency and engagement. Reviewing investments, charitable goals or business strategies together keeps the family aligned and prevents future surprises.
Create a mission statement or legacy letter. Explaining the “why” behind the plan gives heirs context and a shared philosophy, helping them make decisions that honor the family’s intentions and avoiding future misinterpretation or misalignment.
Align wealth with values and impact
Families that treat wealth as a tool for impact — rather than just a resource to preserve — tend to see greater alignment across generations and fewer internal conflicts.
Involve heirs in grant-making. This teaches responsible capital allocation and connects financial decisions to deeper values, reducing the risk of detachment or aimlessness.
Families that begin early, communicate clearly, maintain updated plans and invest in financial education are far more likely to avoid common pitfalls and preserve their legacy for generations to come.
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This list consists of the top 7 retirement books of 2025.
Source: Morningstar.com
On the Bright Side
Updated Retirement Insights Disclosure: This document is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions. It is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.
Investment Advisory Services offered through Trek Financial LLC, an investment adviser registered with the Securities Exchange Commission. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein.
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