What is your opinion on charitable giving?

#1

My husband and I do not agree on how to give. In our monthly budget we (he) sets aside $300 a month to a give account. I would like to see the funds going towards the second Roth IRA. When we were younger we did not make the best money decisions and I feel like we still need to catch up as we are both in our 40’s.

I am charitable and like to give in different ways. I like to help and give my time and money as situations arise. The fact that money is automatically set aside and we cant touch it because its already classified as “give” is difficult for me. My husband and I do not see eye to eye.

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#2

Hey @llrodarte!

Hm… well I would first want to know what your financial situation is. If you’re giving, while not being in good shape for your own retirement, that may not be a net positive to the world. The “oxygen mask” rule applies here. Secure your own before helping others. If you don’t, you may end up being more of a burden on those causes you were trying to help, then any benefit from your charity.

Once you are on pace for retirement a healthy, then I believe giving can be a wonderful thing. I personally think the purpose of life is to be happy and help people. Having your own financial situation secured makes both of those things a lot easier. And giving can be some of the most joyous and rewarding dollars you spend. Money I give to help people is definitely the easiest checks to write.

If you’re in your 40s and not at least filling up both Roths, it concerns me that you’re not on pace for a healthy retirement. Maybe point out the potential tax free growth in a Roth IRA, and how much MORE you could give later if wisely invested for many years first. I hope to spend my own golden years helping people as much as possible with the fortune I’ve amassed. :slight_smile:

#3

Thank you for your feedback. We are a single income household, we have been maxing out his 401(K) for maybe the last 6 years and just started to max out my Roth IRA 2 years ago. We are not contributing to my husbands Roth IRA and we have a about 7 months EF. We have a balance on a CC (0%) from some kitchen appliances that needed to be replaced and one car payment 1.99%.

#4

I would put your numbers in to see what kind of shape you are in for retirement:

And I would pay off those debts!

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