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The Rich Get Richer: Should the Wealthy Get a Tax Break for Endowing Elite Universities?

Nike founder Phil Knight has given Stanford University $400 million to endow a graduate program modeled after the Rhodes Scholarships.  Assuming that Knight, an alumnus of Stanford’s business school, is charged the top marginal federal tax rate on his income, the donation will give him a $158-million tax break. Tax deductions for donations are only one type of hidden public subsidy that nonprofit universities collect; their investment gains also are untaxed, as is their real estate.

Via Los Angeles Times

Disarm Your Client’s Shame

Jim Adkins, president and CEO of Strategic Financial Associates, shares insight on how to reassure clients when they feel uncomfortable or embarrassed discussing their financial situation with you. Adkins says shame is such a strong emotion — it can really overwhelm clients and prevent them from taking the steps they know they need to take. If a client won’t make eye contact or seems to shy away from a particular area, that’s a good sign that the advisor needs to spend a little bit more time restoring confidence.

Via Financial Advisor IQ

Women Save More than Men for Retirement: Study

Recent research by Vanguard shows that women are the ones signing up for 401(k) plans and saving a larger piece of their salaries, compared with their male counterparts. Vanguard looked at 720,000 workers who were eligible to sign up for their employer’s 401(k) plan. The study found that women are 14% more likely to voluntarily take advantage of the pretax retirement savings accounts. Women also are saving anywhere from 7% to 16% more than men, depending on income level.

Via CNBC

Small Companies Needn’t Fear Launching Retirement Plan

Employees who are engaged at work perform better, which translates into better revenue growth for the company. Retirement plans are one way to get employees engaged and want to stay with a company for longer than a year or two. Where does a small business owner begin if they want to offer a retirement plan? A small business owner must decide what type of plan they want to offer – and the author offers three options available to small businesses: 401(k)/403(b), Simple IRA and SEP IRA. Of course, if the company is very profitable, the owners might want to open a Cash Balance plan combined with a 401 (k) to maximize their own savings too.

Via Benefit News

5 Words Millionaires Understand Better Than Others

If there is one thing that all millionaires today have in common, it is that they know how to be successful. While their success may come from different places, and they may have earned their money in different ways, this is one thing that all millionaires today share. Check out the five words that millionaires understand better than others.

Via Entrepreneur