Financial gifts for your valentine

Long version

For many of us, the COVID-19 pandemic may be putting a hold on dinner at the charming local bistro, but the spirit of Valentine’s Day cannot be extinguished. This year, perhaps more so than in the past, you may want to make your Valentine’s Day gifts even more meaningful. So, for example, what can you give your loved ones to help them along on the road to financial security?

Here are a few possibilities:

  • Contribute (indirectly) to an IRA
    Virtually anyone with earned income can contribute to an IRA, which offers tax benefits and an almost unlimited array of investment options. Yet, most people never contribute the maximum amount allowable each year, which, in 2021, is $6,000, or $7,000 for those 50 and older. You can’t contribute to another person’s IRA, but you can give that person the money for that purpose. However, an individual can’t contribute more to an IRA than he or she earned during that year. So, if you were to give someone $1,000 to be placed in an IRA, that individual must have at least $1,000 in earnings. Be aware, though, that the recipient can use the money for any purpose.

  • Give shares of stock
    You probably are already familiar with the products your loved ones use – so why not give them shares of stock in the companies that make those goods or services? Most people enjoy being “owners” of businesses whose products they use. Furthermore, owning stocks for the long term can be a valuable component of anyone’s financial strategy. If you are unsure of how to give stocks, you may want to consult with a financial professional.

  • Stay protected
    If your valentine also happens to be your spouse, you can give a gift of tremendous value by simply working to protect what you have. For example, if something happened to you, would your spouse be able to maintain the household, educate children, pay the mortgage and so on? A financial professional can help you find the protection you need, as well as suggest ways to defend yourself against the devasting costs of long-term care. A private room in a nursing home can cost $100,000 or more each year, according to the insurance company Genworth, and Medicare typically pays few of these expenses, so you’ll want to be prepared.

  • Create (or revise) your estate plans
    It doesn’t sound very romantic but making sure your estate plans are in order is one of the best gifts you can give to all your loved ones. If you haven’t created your plan yet, contact an attorney who specializes in estate planning. You may also want to involve your tax and financial advisors. And if it’s been a while since you looked at your existing plan, take the time to review it – this is especially important if you’ve had changes in your family situation.

On Valentine’s Day, the chocolate hearts and flowers are certainly always appreciated. But financial gifts can help you make a truly lasting impact on your loved ones’ lives.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Number of words: 503

Short /radio version

PSA: Financial Gifts for Your Valentine

TBA: Feb. 8, 2021
Words: 184 (excluding FA’s name, address/phone number)

Valentine’s Day is almost here. This year, besides the flowers or chocolate hearts, why not consider making some financial gifts to your loved ones?

For starters, you could write a check for loved ones to put toward their IRAs. As long as they have earned income, they’re eligible to contribute. Keep in mind, though, that recipients can use your gift for any purpose.  

You could also give stocks. Many people enjoy owning shares of companies that make the products they use.

If your valentine is also your spouse, you can help provide financial security by protecting his or her ability to keep paying the bills if something were to happen to you. A financial professional can help you find the right protection package, which may also include a defense against the potentially enormous costs of long-term care.

And you can make a Valentine’s gift to all your family members by ensuring your estate plans are up to date.

Financial gifts can help you make a lasting impact on your loved ones’ lives. So, be generous and thoughtful as you plan your Valentine’s Day gift-giving.

This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).

Member SIPC

Number of words: 184