From the Field
I open with a heavy heart towards those who may or may not be receiving a paycheck this pay period. This is a particularly difficult time of year to not receive pay. If you need assistance, here are two links to sources who can provide assistance:
As we prepare to round out the year, there are so many things going on; time change, Veteran's Day, Turducken's (look it up), Black Friday, and Cyber Monday. Yet for a Marine, November is really nothing less than magical as you join thousands of other Marines in a last-second dash to update your medals, alter a really expensive but awesome-looking uniform, and attend anywhere between 1 and 4 Marine Corps birthday ball celebrations. IYKYK.
Frankly, this edition of the Formynder Field notes is packed with helpful reminders as we approach gift-giving season; a sometimes conflicted time as many will stretch their finances to see someone they know, smile. It doesn't have to be that way, however. So, let's dig in!
The BLUF
I know you'll want to read the entire newsletter, but here's a preview of what's included in this month's edition.
✅ Feel Good Moments. Could this month, GET any more awesome?!
✅ It's open enrollment time. Didn't we talk about this last month? Yes, but it's that important!
✅ A turkey and smoker walk into a bar. It's my favorite smoked turkey recipe!
✅ Christmas is only 54 days away. Tips for avoiding guilt and remorse in January.
✅ Tis' the season... to think of charitable giving. How giving affects your taxes and a couple of tax strategies for already generous folks.
✅ In plain site. Some of the other places you'll find my musings.
Feel Good Moments
Y'all, I don't even know where to start this month! Let's go... chronologically?
- My youngest son was able to take a bit of leave to come home for a week to celebrate both his and his brother's birthdays!
- On October 20th, I completed the requirements to become a CERTIFIED FINANCIAL PLANNER®! I began the journey on January 3rd, 2022 with the education phase, took and passed one of the hardest exams I've ever taken in March of 2023, and completed 6,000 hours of experience. I am so thankful to have been through the rigor, thankful to have it complete, and thankful to be able to use my newly earned credential for years to come.
- Remember in my last newsletter, I had something big to announce? You don't??? You can go back and read it here. Anyway, my friend and colleague, retired Army SgtMaj Rob Moore and I have launched The Fiscal Foxhole Podcast! We are having a blast recording weekly podcasts from our foxhole. There are links below to check it out, rate it, subscribe & share wherever you listen to your podcasts.
- Could there be more??? 100% yes. Oct 26th was the culmination of 4 months of hard marathon training. For many years, I've wanted to time qualify for the Boston marathon. For my young, spry age, a 3:15 is the minimum, but faster is better. I came across the line (still alive) with an 8+ minute PR, at 3:09:36! Boston, here we come!!
It's Open Enrollment Season
There's a lot going on in the month of November, but let's summarize last months newsletter main topic, open enrollment, since the enrollment season starts this month for TRICARE and many other plans.
Remember, this is your chance to look forward to the year ahead and correct any under or over insurance needs. Ask yourself: Do I still have the right healthcare plan and benefits for me and my family?
Open Enrollment at a Glance
Here’s a quick cheat sheet on various open enrollments:
Any changes you make or don't make, usually take effect January 1st of the following year.
What Are You Changing?
Have a look at your primary healthcare plan.
- Do you want no low-to-no annual premiums and no out of pocket costs, but little choice in care?
- Do you want more choice in care, but higher premiums and out of pocket costs?
- Are you paying for too many or not enough dependents?
- Is it time for your young adult to get their own healthcare?
- Do you typically have out of pocket healthcare costs you could use a HCFSA for?
- Do you typically have out of pocket dependent care costs you could use a DCFSA for?
- Do you need to look into vision or dental care?
Remember, if you do nothing, your coverage will remain the same. However, if you do nothing towards your HCFSA or DCFSA, those amounts will go to zero. You must renew the allotments to FSA every open season.
Smoked Turke... I Mean, Thanksgiving is here!
I've eaten 44 Thanksgiving dinners, but it wasn't until a few years ago that I decided to make room in the oven by storing our Turkey in a smoker at 325 degrees for 2-3 hours. It has taken me three seasons to get it just right, but I do believe I found the keeper recipe for a flavorful and moist turkey. You can check it out here (this is not a referral link - it's just a recipe).
The Day(s?) After
If Santa in September didn't do it for you, nothing else signals Christmas shopping quite like the Thanksgiving holiday. "Back when I was a kid," (said in the oldest man voice you can come up with), I actually do remember going to the department store the day after Thanksgiving, standing in line with my mom chanting "Open, Open, Open," only to put a bunch of items on layaway for the next 3-4 weeks. I would say standing in line is in the past, but I've seen the socials with massive crowds storming the shelves doing their best impersonations of William Wallace fighting for FREEEEEEDOOOOOMMMMM! Ah, nothing says "love thy neighbor", like violence over the last on sale 85" LED UHD TV.
There is an intense social pressure to buy while it's cheap. And while getting a great deal does help your dollar stretch, depending on how many deals you find, you can still do more harm than good. Here are some tips to help keep you and your spending, comfortable during the giving season.
- Get clear on who you would like to purchase gifts for. Your significant other, sure. Your kids? Absolutely. Your aunt's second cousin's sister-in-law? Maaayyyybe not. I know there is the inevitable "but they sent us a gift last year." True, but someone else's spending habits probably shouldn't define yours. Did you send a thank you card? That really should be enough. If they are expecting something in return, perhaps they are giving for the wrong reason.
- Get clear on your spending plan. This can be so hard. I would recommend going back to last years finances and having a glance at what you spent just to have a realistic picture for this year. Then, with last years' number in mind, determine how much you would feel comfortable spending. Be realistic. Determine how much you'd like to spend on each person. Does the amount per person * number of people = the amount you budgeted?
- Look for alternative gifts. Go with me here. Usually, it's not the gift itself, but the act of giving that is meaningful. If it's the pink bunny pj's from A Christmas Story, perhaps that's an exception, but you never know. My wife has been a "maker" for many years now and her gifts get more creative and personal each and every year. Our family and friends have loved her gifts and ultimately, the cost has enabled us to give to more people versus had we bought something at a store.
- Think outside the set discount days. Clearly, Black Friday and Cyber Money are two defined discount days, but often, there are additional days leading up to Christmas where you can find items at a discount - particularly if consumer economics are lagging and stores are looking for ways to get you in their shops. This is particularly helpful to any procrastinators in your life, which may be you!
Ultimately, as you develop your gifting plan, try to think ahead to the day(s) after Christmas. Often, there is a lot of guilt, shame, and regret around the amount of extra money or extra debt during the holiday season. The spending plan you put in place should not only prevent you from feelings of guilt and shame, but provide you the freedom and permission to spend.
Speaking of giving...
Sometimes, cash is the answer. If you simply love seeing smiles and you have money you would either like to, or need to give away, each year you can give up to the annual gift exclusion amount, multiplied by an endless number of people. In 2025, that amount is $19,000. Here's an example of a married couple with two kids:
- Husband: can give $19,000 to child one and $19,000 to child two
- Wife: can give $19,000 to child one and $19,000 to child two
- Total gift removed from the parents estate tax-free: $76,000
- Total smiles from the kids: endless
Parents, or grandparents, can also "superfund" a 529 with up to 5 years of the annual gift exclusion, per child! You'll still have to file a Form 709 and your exclusion will be used up for that person for 5 years, but this is a generous and tax-beneficial way to gift.
Gifting to people is one thing, but what about gifting to a charity? The end of the year is a typical time for people, who are already charitably inclined, to determine how much they want to give to their favorite organization. Why? Well, generosity certainly, but tax advantages too. November is a great month to prepare for a gifting strategy since the month of December is usually a difficult time to get things done, as you can imagine.
- You are still trading a dollar for a quarter. This speaks to the motivation of the giving strategy. Giving purely for the reason to get a tax deduction is not wise. The math doesn't math. Ultimately, when you give, it is an itemized deduction reduces your taxable income, but not your Adjusted Gross Income. In other words, while it might ultimately reduce your tax liability, it is not a dollar-for-dollar deduction.
- Giving cash or assets is an itemized deduction: Not only does giving not affect your AGI, but depending on how much you give, it may not even affect your taxable income. Charitable giving is one of 5 categories of itemized deductions that if they all add up to less than your standard deduction, mean little towards your taxes. The bigger number always wins which is good news for you, but if you think giving is always tax advantageous, it is not always the case. For context, in 2025 a single persons standard deduction is $15,750 and MFJ is $31,500. On giving alone, that could be considered a lot. That said, if you add property taxes, state and local taxes, mortgage interest, out of pocket medical costs above 7.5% of AGI and charitable giving together, now we might be talking!
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Two Specific Tax-Helpful Strategies of giving.
- Donor Advised Fund (DAF). Do you give regularly, but it's not enough in a single year to get you over the standard deduction? Perhaps you have a large appreciated investment that you don't want to pay taxes on. A DAF is a great solution! You can save up a few years of cash donations and donate to a DAF in the same year for an immediate charitable contribution deduction. Or you can donate an entire appreciated asset and not only not pay taxes on it, but receive a charitable deduction for it. While you don't have ownership of assets in a DAF after donation, you usually have the ability to pick the public charity to donate to, the amount to donate, and the timing of the donation.
- Qualified Charitable Distributions (QCD). At age 70 1/2, you can give charitably while reducing your tax deferred accounts through QCDs. These are especially helpful when you hit Required Minimum Distribution age where you can donate from your tax-deferred RMD, up to the annual limit, directly to a charity. For context, the QCD contribution limit in 2025 is $108,000 per person. That's pretty powerful!
As usual, none of this is tax advice - it is for educational purposes only. You'll want to get with your financial planner to see how gifting might fit into your overall strategy and a tax professional to ensure i's are dotted and t's are crossed in execution.
In Plain Site
Check out my latest article: "A Costly Lesson In Trust: How One Military Family Was Misled"
Check our the Fiscal Foxhole podcast!
I also post educational content to the socials below regularly. I'd love for you to follow and share!
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Disclaimer: This newsletter is provided for educational, general information, and illustration purposes only. Nothing contained in this material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation.
