The Team Jack Foundation, established in 2011 by the Hoffman family from Atkinson, has been dedicated to raising funds for pediatric brain cancer research. Over the years, this organization has managed to amass over $12 million through various fundraising activities and events. This year marks a poignant milestone as the foundation hosts its annual gala without the presence of its namesake, Jack Hoffman, who passed away in January after battling brain cancer since he was five. Despite this significant change, the foundation remains committed to its mission of supporting research that can help children fighting the same disease.
Jack Hoffman's story has become a beacon of hope and inspiration for many. His relentless fight against brain cancer has left an indelible mark on the community. The Team Jack Gala, scheduled for Saturday evening, aims to honor his legacy while continuing to raise crucial funds. Through ticket sales, a silent auction, and generous sponsorships, the event seeks to bolster the foundation's efforts in advancing pediatric brain cancer research. Organizers are enthusiastic about making a meaningful impact at this year's gathering, which will be held at the Cornhusker Hotel.
The gala has seen remarkable growth over the years. In its inaugural year, 2014, it raised over $420,000. Last year, the total contributions soared to more than $700,000. The foundation is optimistic that this year's event will surpass previous records. Kylie Dockter, representing the Team Jack Foundation, expressed excitement about returning to the Cornhusker and emphasized the importance of continuing the vital research. Rick Allen, the emcee for the gala, highlighted the significance of every contribution, stating that ongoing support is essential to ultimately eradicate the disease.
Starting at 6:30 p.m., the gala will be live-streamed on the Team Jack Foundation's website, ensuring that those unable to attend can still participate and contribute. The foundation's dedication to improving outcomes for children with brain cancer remains unwavering, driven by the inspiring legacy of Jack Hoffman. As the event unfolds, it promises to bring together supporters and advocates united in their commitment to making a difference in the lives of young patients.
Financial experts emphasize the importance of initiating discussions about money with children at an early age. This proactive approach can significantly impact their financial future, potentially leading to substantial retirement wealth. By implementing practical strategies such as starting conversations early, leveraging initial income, choosing tax-efficient investment vehicles, adhering to savings rules, offering matching contributions, and focusing on financial education, parents and guardians can set a solid foundation for long-term financial success.
Building a Strong Financial Foundation from Childhood
Introducing children to the concept of financial planning during their formative years is crucial. Parents and guardians play a pivotal role in shaping their children's understanding of money management. Engaging in early discussions about finances helps establish a robust foundation for financial literacy. These talks cover various aspects, including saving for significant milestones like purchasing a car or funding higher education, ensuring that children are well-prepared to handle financial matters responsibly.
The process of instilling financial awareness begins with simple yet meaningful conversations. For instance, discussing the importance of saving for the future can start as early as when children receive pocket money or birthday gifts. Parents can introduce basic concepts such as setting aside a portion of these funds for long-term goals. By doing so, they teach children the value of delayed gratification and the benefits of consistent saving. Moreover, involving children in budgeting exercises for family purchases can further enhance their comprehension of financial decision-making. Over time, these lessons build a strong foundation that supports sound financial habits throughout their lives.
Leveraging Opportunities for Long-Term Wealth Accumulation
Maximizing opportunities for wealth accumulation involves strategic planning and leveraging available resources. One effective method is to capitalize on a child's first income, whether from part-time jobs or entrepreneurial activities. Setting up retirement accounts at this stage allows for maximum growth potential through compound interest. Additionally, selecting tax-efficient investment vehicles ensures that funds grow without being overly taxed, enhancing overall returns.
To achieve optimal financial growth, it is essential to consider both immediate and long-term strategies. For teenage earners, aiming to save 20% of annual earnings can lead to significant accumulations over time. This ambitious yet realistic target maximizes the power of compound interest, potentially resulting in substantial wealth by retirement age. Parents can also incentivize saving by matching their children's contributions, mirroring employer contribution matches they will encounter in the workforce. Furthermore, focusing on continuous financial education equips children with the knowledge needed to make informed decisions, ultimately leading to greater financial security. By combining these approaches, families can create a comprehensive plan that fosters long-term financial success for the younger generation.
Victims of financial scams are facing a double blow: not only have they lost significant sums from their retirement accounts, but the Internal Revenue Service (IRS) now treats this stolen money as taxable income. Previously protected by the Theft Loss Deduction, victims are now left to grapple with substantial tax bills following changes in tax legislation. A senior citizen in metro Atlanta, who had $280,000 siphoned off from his investment accounts, faces an additional potential tax liability of $60,000. The scam was perpetrated by someone posing as a federal agent, and now the IRS considers the stolen funds as earned income, further complicating the victim's financial situation.
The Impact of Legislative Changes on Victims
The removal of the Theft Loss Deduction in the 2017 Tax Cuts and Jobs Act has left many victims vulnerable to unexpected tax liabilities. This provision previously allowed individuals to claim deductions for losses due to theft, thereby avoiding unnecessary tax burdens. Now, without this protection, victims must report stolen funds as income, leading to higher tax obligations. For instance, a senior citizen in metro Atlanta is facing a potential tax bill of $60,000 on top of the $280,000 already lost. The emotional and financial toll on these individuals cannot be overstated, especially when considering that they never actually received the stolen funds.
Before the legislative change, victims could list theft losses on their tax returns, ensuring they did not owe taxes on the stolen amounts. However, the new law restricts the deduction to losses related to federally declared disasters, leaving victims of other types of theft unprotected. Christina Wease, who runs a low-income tax clinic at Michigan State University School of Law, has encountered several clients facing similar predicaments. She emphasizes that Congress may not have fully understood the repercussions of this change, hoping it will be addressed soon. The current situation leaves victims struggling to prove that they never received the funds, while legally, the IRS must collect the tax debt.
Potential Solutions and Advocacy Efforts
Advocates and legal experts are pushing for reforms to alleviate the burden on scam victims. Various programs exist to reduce or manage tax debts, but they can be complex and limited in scope. Many provisions of the 2017 tax law are set to expire this year, presenting an opportunity for lawmakers to revisit and potentially restore the theft loss deduction. Last year, a bill proposed by Democrats in the House aimed to reinstate this crucial protection. If passed, it would provide much-needed relief to those affected by scams.
The Senate Aging Committee’s 2024 report highlighted the plight of fraud victims who can no longer deduct theft losses and are often obligated to pay taxes on stolen money. Wease and other advocates argue that Congress should recognize the unintended consequences of the 2017 tax overhaul and take corrective action. Victims like the senior citizen in metro Atlanta find themselves in a precarious position, where proving non-receipt of stolen funds is challenging. While some payment plans and debt reduction programs exist, they offer limited assistance. The hope remains that legislators will address this issue promptly, providing much-needed support to those already suffering from financial scams.