dsmWealth November 19, 2020

Susan Hatten has built a solid upward-reaching career path on two fronts: the world of business, and the world of charitable giving. On the corporate side, Hatten currently wears two hats – as chief operating officer at BrokerTech Ventures, and as senior manager of corporate community engagement at Holmes Murphy & Associates. In the nonprofit world, it would take a hat tree to handle her duties, which are as varied as working to propel women into corporate leadership roles and staging wine festivals to helping children with special needs.

“There are so many worthy initiatives,” said the 38-year-old Hatten of her dive into charitable giving.

A native of Nebraska, Hatten said she was drawn to charitable work by watching her parents. They were involved with a family-run construction business, and in the town where they lived she said her mother was active in charitable efforts while her dad spent a lot of time as a volunteer firefighter.

It wasn’t long after she graduated from Iowa State University and joined the work world that Hatten dove into nonprofit work. One of her first involvements was with Variety – the Children’s Charity of Iowa. It serves underprivileged and special needs children and holds telethons that, over the years, have raised some $100 million. She currently is president of its board.

Through Connie Wimer, chairman of Business Publications Corp., Hatten became familiar with Winefest Des Moines. Winefest – which hosts events throughout the year, including its signature weeklong summer festival – has long donated the money it raises to Bravo Greater Des Moines, which supports local arts and culture. Hatten helped Winefest diversify its reach so that it now also funds scholarships for students at the Iowa Culinary Institute at DMACC and the Court of Master Sommeliers.

In addition, Hatten serves on the board of trustees at ChildServe, which helps children with special heath care needs. Through Holmes Murphy, she also is involved with WOW – Women Optimizing Women – which aims to encourage women interested in professional development and community engagement. And if that isn’t enough, she also is active in several insurance industry trade associations.

All this work taps into what she calls her “time, treasure and talent.” She said she relishes it all, though, and sees it as a way to engage with the community. There also is a give-back to her, as she said she has met many people – networking comes to mind – who likewise are working to make Des Moines a better place to live.

Which Tax Bracket Will You Fall Into in 2021?

BY STEVE DINNEN

Tax officials in Iowa and Washington have recently updated the indexes that will be used in 2021 to determine the income tax brackets we fall into. They show a slight uptick from 2020’s bracket levels.

The bracket calculation, along with deduction allowances for filing status (single, or married filing jointly, separately, etc.) and the personal exemption allowance, is adjusted every year to allow for inflation. The practice debuted in 1981 at the federal level, and gradually has spread to most states. Iowa adjusts for the brackets, of which it has nine, and for the standard deduction, but not for the personal exemption.

At the federal level – it has seven brackets – the lowest bracket of 10% applies to taxable income below $9,950 single, or $19,900 married filing jointly. This year the lowest brackets are below $9,875 single/$19,550 married filing jointly.

Iowa’s lowest rate for 2021 is 0.33%, for income below $1,676. This year’s lowest rate applies to taxable income below $1,666.

The two highest federal rates, 35% and 37%, edge up next year to $209,475/$418,850, and $523,600/$628,300. Iowa’s top rate of 8.53% (seventh-highest in the nation, for what it’s worth) starts at $75,420 next year. It is $74,970 this year.

How to Leave an Inheritance to Your Children

BY JEAN CHATZKY FOR AARP

About $30 trillion. That's the amount of money boomer parents are expected to leave to millennial offspring over the next 30 to 40 years, according to consulting firm Accenture. That number will rise or fall depending on many factors, including the economy, the markets, how long we parents live and so on.

Whichever way the tide flows, it's likely to be a considerable chunk of change. And that means if you're among those leaving a tidy sum to those you love, you want to do it right. Here's how.

1. Manage expectations with open communication. A recent survey from Fidelity Investments showed that adult children underestimated the value of their parents' estate by a tidy $100,000. Granted, that's likely better than if they'd been off by a million, but having some sense of where you stand and what they're likely to receive as a result will put their minds at ease. >> READ MORE

Saving Enough for a Comfortable Retirement
BY STEVE VERNON FOR FORBES.COM

Most pre-retirees haven’t saved enough money to retire full time at age 65 and enjoy their pre-retirement level of spendable income, according to a recent report from the Stanford Center on Longevity. Instead, they’ll either need to work longer, reduce their spending, or do some combination of the two.

This conclusion assumes that to be comfortable, you’ll need to meet a common retirement planning goal: that you’ll need a gross retirement income equal to 70% to 80% of your pre-retirement pay. Why not 100%? When you’re retired, you’ll most likely need less gross income because you won’t pay as much toward income and FICA taxes, you won’t need to save for retirement anymore, and you won’t have to pay for work-related expenses, such as commuting.

If you haven’t saved enough to meet the 70% to 80% replacement goal, there’s no need to panic or get depressed about your future. Instead, try changing your retirement objectives. It’s pointless to strive for an unrealistic goal that requires more money than you have. Rather than having pie-in-the-sky plans, a more helpful strategy might be to decide that you simply want to live a fulfilled and happy life during your retirement years. >> READ MORE