Open-Handed Living: How Intentional Generosity Strengthens Your Planning
If you’ve ever watched a toddler defend a cupcake, you know we don’t necessarily start life with a generous tilt. We arrive on this earth with a tight grip and a strong sense of “mine,” but in the end, we cannot take any of our “things” with us.
That simple truth tends to reframe the middle: the years where we earn, spend, save, invest—and decide whether our resources serve only us or spill over into others’ lives.
In the short run, every dollar earned can do five things: meet daily needs, grow through investing, pay taxes, service debt, and give. Not that our priorities should be in that order, but statistics show us that giving is generally listed last.
As our income rises, people often assume their giving will naturally rise, too—but the percentage often shrinks. Our culture is built to sell more, not to nudge us toward generosity. In other words, we won’t drift into open-handedness. We choose it—on purpose—just like we automate savings or pay down a mortgage.
Think of money like water.
A variety of reasons can bring a season of drought. Underemployment, overspending, or crisis can leave the riverbed dry. Flood seasons come as well, and a lack of spending boundaries may falsely create a sense of freedom until the damage is already done, leaving our own destruction, or the destruction of others, in its wake.
There’s also the Dead Sea effect—where plenty flows in and nothing flows out. From a distance it can look impressive but underneath it’s lifeless.
The goal is a living river—healthy banks and a steady current—where resources are put to good use to be productive for all around, including you.
Giving Warm-Handed
The gift of giving is truly meant to bless the giver as much as the recipient. There’s beauty in giving “warm-handed” and funding experiences and needs where you can witness the impact, rather than your heirs receiving the funds after you’re gone.
From helping family, or others, with a car repair, a down payment on a first home, a summer camp or mission trip, or a multigenerational trip they will never forget—you will experience the joy of generosity along with them.
Compare that with leaving a large pre-tax IRA to a high-earning 60-year-old heir who must empty it within a set window; it’s still a gift, but often less efficient and less meaningful than help offered earlier.
Start with the heart and decide what “enough” looks like. Then create a plan, name your people and causes, match vehicles to goals, and stress-test your plan so generosity stays steady in choppy markets.
That’s when your money stops being a reservoir and becomes a river.
- Point gifts to the best buckets. Not all dollars are taxed alike. If you plan to bless both people and charities, consider leaving pre-tax IRAs to charities (they can use every penny tax-free) and Roth IRAs or stepped-up taxable assets to people (often friendlier for heirs). One beneficiary change can keep more of your legacy doing what you intend.
- Give directly from IRAs in your 70s+. If you’re eligible, qualified charitable distributions (QCDs) send money from an IRA straight to a charity so it never becomes taxable income—and can satisfy required distributions once those apply. For many retirees, it’s the most tax-efficient way to give.
- Use a donor-advised fund (DAF) when you have gains—or want to “bunch.” Donating appreciated stock or other assets to a DAF can avoid capital gains, create a deduction (subject to rules) in the funding year, and let you grow the asset value and recommend grants over time. It’s also handy for funding multiple years of giving at once.
- Aim education dollars wisely. Today’s 529 plans are flexible, and ABLE accounts can thoughtfully support loved ones with disabilities without disrupting benefits.
- Teach the habit. For our younger generations with earned income, a modest annual gift to a Roth IRA plants a long-term seed—and a powerful lesson.
Generosity is a heart posture, and it’s also maximized by smart tactics. Strategic giving ensures each dollar given has the most impact on what matters to you. Want more insights on giving strategies? Check out this blog.
Call us today, and we can help guide you into generous living.
