Here are three factors to consider when making charitable donations:

1. Beyond cash: Writing a check (or using a mobile payment service like Venmo) is perhaps the quickest way to financially support a cause. But transferring appreciated assets like stock or real estate could also pack the extra power of additional tax benefits. If you’ve owned them for at least a year, donating certain types of these assets would allow you to avoid capital gains taxes — and typically the organization receiving the donation won’t owe those taxes either. Instead, you could claim the value of the donation as a deduction on your taxes.
   
   
2. Multi-year giving: One tax-saving tool that is gaining popularity is donor-advised funds, or DAFs, which are essentially charitable investment accounts dedicated to funding causes you want to support. One potential advantage of a DAF is the ability to lower your tax burden in a windfall year. Not only could placing assets in the fund reduce or eliminate capital gains but a DAF also could allow a donor to essentially extend the life of the gift. A tax deduction could be taken immediately while the funds are deployed over a period of time. Another benefit? Once the assets are placed in a DAF, any appreciation is typically tax-free, potentially increasing the impact of the original donation.
   
   
3. Giving in retirement: If you are over the age of 70½ and are taking the required distributions from a traditional IRA, a strategy to consider is setting up a qualified charitable distribution, which typically allows you to transfer up to $100,000 annually to one or more qualified charities. While there is no tax deduction when making donations in this way, you can reduce your overall taxable income.

There are more than 1.5 million nonprofit organizations in the United States. With a little planning, helping some of these groups achieve their missions can also have the additional benefit of tax savings for you.
Source: https://www.capitalgroup.com/ria/insights/articles/giving-and-receiving-3-tips.html

The current economic climate is facing higher inflation than previously expected, as indicated by increases in both the Producer Price Index (PPI) and Consumer Price Index (CPI). PPI indicates the cost of production from a producer standpoint while CPI reflects cost of living for consumers. On October 12th, CPI was reported to rise 0.4% on the month, above 0.3% forecast. The PPI increased 0.5% for September, against the estimated 0.3% rise. Several factors are contributing to this inflationary trend, including the persistent high cost of oil due to OPEC’s supply restriction and corporate consolidations in the oil sector, ongoing labor strikes, and a highly competitive job market. Federal Reserve Chairman Powell, in his address on October 19th, offered limited insight into the Fed’s outlook, but highlighted prevailing uncertainties. Due to elevated inflation, Powell hinted at the possibility of maintaining the current interest rate of 5.25% - 5.50% at the November 1st meeting further extending the period of high interest rates. The Federal Reserve, adopting a cautious stance, is prepared to reassess the situation during their meeting on December 13th if necessary.

Adding to the complexity is the ongoing conflict in the Middle East. A seminar hosted by Fidelity (script available in the source section) emphasized a probable escalation of tensions between Israel and Palestine due to the decisive determination of removing Hamas-controlled Gaza. The problem is rooted in the complex territorial landscape of Gaza. Twenty-five-mile land encompassing 2 million people, operates on two distinct levels. The first is the visible, densely populated urban area that exists on the surface. The second is the "subterranean" Gaza, an underground region primarily utilized for weapon manufacturing. Since the area is heavily urbanized, this possess a challenge to the Israeli army when it comes to deterring terroristic group while preserving lives of all civilians. An escalation is said to cause supply chain disturbance causing the oil prices to increase back to September levels. On October 19th, oil prices saw a moderate increase of 2.47%. With the situation evolving, a short-term gradual uptrend is anticipated within the industry.

Despite losing their relevance, the monthlong auto strikes are continuing with union demand for substantial pay and benefits. Although production and revenues are impacted, a resolution is anticipated once demands are met, marking a pathway to recovery.

Overall, the Federal Reserve is exercising caution. The risk of over-tightening is balanced with the need for inflation control. The Fed is likely awaiting October's CPI and PPI data to gain clearer insights into inflation trends. Despite energy market fluctuation, there is a promising sign in real estate. With the 10-year note yield above median cap rate, bonds offer more attractive returns. This gives an opportunity for investors to reallocate assets and “meet” the supply of bonds thus creating an equilibrium in which supply equals demand. This would bolster confidence in government fiscal policy and economic stability, potentially eliminating the need to raise interest rates.

However, at Traditions Wealth Advisors we have diversified your portfolios well to buffer against inflation and protect against geo-political events like Israel and Ukraine.

Source: https://www.crossmarkglobal.com/wp-content/uploads/A-Message-from-Bob-Ramifications-from-Middle-East-War.pdf
https://institutional.fidelity.com/app/literature/item/9910988.html

Israel is in the midst of dealing with internal unrest while simultaneously engaging in key diplomatic discussions with Saudi Arabia and the U.S. These negotiations are especially significant as they could mark a turning point in the historic relations between Arab nations and Israel, with the potential recognition from Saudi Arabia recognizing Israel as a state. The U.S. is helping facilitate these discussions along with Saudi Arabia's proposal to boost oil production to “cement” this deal. However, a recent act of aggression from Hamas has introduced new challenges. Gaza, under the aegis of Hamas since 2007, has endured persistent economic adversities. Iran’s sponsorship of Hamas is viewed with suspicion, raising concerns about potential interferences in the ongoing Israel-centric diplomatic discussions. Although sanctions could be applied to Iran through similar pacts as JCPOA, Iran's strategic diversification of its economy since the 1980s has reduced the impact of such restrictive measures.

Simultaneously, adverse reactions from Israel could jeopardize the emerging diplomatic ties with Saudi Arabia and subsequently influence the proposed augmentation in oil output. The economic repercussions of the unfolding conflict are contingent upon its duration and scope. With the “battleground” located away from oil extraction sites, the initial 5% hike in oil prices on Monday, October 9th was a reflexive market reaction rather than a sustained trend (speculation). Subsequent days (October 10th and 11th) saw a retraction in oil prices nearing the last week’s levels. The economic outlook, particularly concerning oil prices, depends largely on the containment of the conflict within its current boundaries. An escalation spreading to other parts of the Middle East could influence a tangible shock in oil prices. However, historical context offers some reassurance; since 2007, the area has experienced four major wars and numerous minor conflicts, each lasting about a month on average, without causing prolonged disturbances in oil prices. On top of that, with winter season approaching, a seasonal dip in demand could serve as a stabilizing factor, potentially offsetting any short-term spikes in oil prices resulting from the conflict.
 
How does this conflict compare to the 1970s?
During the late 1960s and early 1970s, the Middle East was amidst geopolitical tensions. In 1973, the conflict escalated between the Arab (Egypt and Syria) and Israeli, known as the Yom Kippur War. With the U.S. intervention, $2.2 billion emergency financial aid package was sent to Israel, which prompted OPEC to impose an oil embargo against the U.S. This embargo brought more economic downturn in the U.S., exacerbating the already fragile economic environment partially triggered by Nixon’s detachment from the gold standard. Subsequently, the U.S. economy faced inflated oil prices, a supply shock, and severe energy shortages, exacerbating inflationary pressures and limiting economic growth—a phenomenon encapsulated in the term "stagflation."

The latest geopolitical turmoil in Israel vastly differs from the past. The U.S. currently relies less on OPEC, the EIA (U.S. Energy Information Administration) data shows a decline to 15% bpd (barrels per day) of total oil imports from 47.8% bpd in 1973, with Canada now being the predominant supplier of 52.5% bpd. In short-term, the U.S. oil supply should remain stable unless the conflict expands. Long-term effects hinge on the Ukrainian crisis and potential Israeli-Saudi diplomatic relations. As time progresses, we will continue to monitor this situation and forewarn clients of emerging challenges.
​
Source:https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php#:~:text=Since%201977%2C%20the%20percentage%20shares,of%20U.S.%20crude%20oil%20imports