Investing Your Retirement Savings in Your Community

One of the factors that influenced my decision to return to the US from Canada was the damage it was clear that covid-19 was going to inflict on small businesses and local economies. That’s always been my business niche, and it was wrenching to hear stories of how my friends and past clients were suffering.

Then the police murder, on my new doorstep, of George Floyd sparked a global uprising for human rights and against the deep-rooted, systemic anti-Black racism of the United States. I began thinking deeper about how to use the financial privilege that I have—not just earning my living helping local and POC-directed enterprises survive and thrive, and not just donating, or directing my consumer dollars thoughtfully, but making sure that I know who is benefitting from my retirement savings.

Enter The Next Egg, a community that supports each other in the technicalities of moving our nest eggs out of Wall Street’s pockets and onto Main Street. Within this calendar year, I will be rolling over my retirement savings from a traditional IRA to a solo 401(k), from which I will get to choose how to invest my funds. There is a lot to learn, and even though using my retirement funds for good is a long-standing dream of mine, I don’t believe I would have taken the plunge without The Next Egg‘s support.

I’ll post more here as I go through the process, and I encourage anyone who is interested in doing the same to join The Next Egg (a subscription is $9.99/month) for their “In an Eggshell” webinars on the basics of solo 401(k)s, self-directed IRAs, rollovers, borrowing from your funds, and more. You also get access to videos of all previous webinars, to community discussions, and to a steeply discounted set-up fee for a solo 401(k) (they usually run about $1,000, and you can get yours for $300 through The Next Egg).

See you at Tuesday’s webinar (June 23, 5-6 PM EDT) on COVID, Rebellion, & Retirement!

A screen shot of the The Next Egg's upcoming seminars in self-directed retirement investment in your community. Text in caption.
The Next Egg’s upcoming (June 23 – Oct 16) webinars. Tuesday, June 23, 5-6PM EDT: COVID, Rebellion, & Retirement: A discussion about the role of our nest eggs in this emerging political moment. Friday, July 17, 12-12:30 PM EDT: How to Borrow from Your Existing 401(k) or 403(b). Friday, August 14, 12-12:30 PM EDT: Solo 401(k) Basics. Friday, September 18, 12-12:30 PM EDT: Rolling Over Your Retirement Savings. Friday, October 16, 12-12:30 PM EDT: Self-Directed IRAs.

 

Illustration of an analog numeric typewriter, superimposed on a paper chart of printed numbers.

Tip Jar

If you find this content useful or interesting, send me a tip.

$1.00

 

 

Crowdfunding and Taxes for Givers

Part 2 of a two-part series.

As covid-19 has shuttered or slowed businesses and the uprising for human rights in the wake of George Floyd’s murder has prompted an outpouring of mutual aid in cities across the US, many people are using crowdfunding who have never used it before.

Just as recipients often wonder if the support they receive is taxable (see Part 1 of this series), givers sometimes wonder about the tax implications of their contributions. The short answer is: there usually aren’t any—so don’t be afraid to give!

Before we go any further, please consider supporting the Du Nord Recovery Fund, which will ensure that POC-owned businesses on Lake Street in Minneapolis will be rebuilt.

In the rare event that giving affects your taxation, what that effect is really depends on what kind of transaction you’re participating in.

A model of the kinds of crowdfunding (donations, gifts, purchases, loans, and equity) anchored on an image of a crowd protesting the police murder of George Floyd.
The five types of crowdfunding transactions are donations, gifts, purchases, loans, and equity. Gifts are the most common transaction in an emergency.

Continue reading “Crowdfunding and Taxes for Givers”

Crowdfunding and Taxes for Recipients

Part 1 of a two-part series.

As covid-19 has shuttered or slowed businesses and the uprising for human rights in the wake of George Floyd’s murder has prompted an outpouring of mutual aid in cities across the US, many people are using crowdfunding who have never used it before.

Recipients often wonder if the support they receive is taxable. The answer depends on what kind of transaction you’re participating in.

A model of the kinds of crowdfunding (donations, gifts, purchases, loans, and equity) anchored on an image of a crowd protesting the police murder of George Floyd.
The five types of crowdfunding transactions are donations, gifts, purchases, loans, and equity. Gifts are the most common transaction in an emergency.

Before we go any further, please consider supporting the Du Nord Recovery Fund, which will ensure that POC-owned businesses on Lake Street in Minneapolis will be rebuilt.

Now, on to the tax implications of crowdfunding. The main question you should ask yourself is: Am I offering anything in return for the contributions I receive?

Continue reading “Crowdfunding and Taxes for Recipients”

Blog at WordPress.com.

Up ↑