With the Secure Act 2.0 that passed in 2022, the world of savings has evolved to allow families a unique opportunity to transform unused 529 college savings funds into retirement contributions through a Roth IRA rollover. This “savings alchemy” lets families repurpose leftover education savings to support retirement goals, ensuring that funds saved for a child’s education can continue to grow tax-free for their future.
The Community Foundation of East Central Illinois (CFECI) “is a publicly supported 501(c)(3) tax-exempt philanthropic organization created in 1972 to encourage and receive contributions establishing endowments for the long-term benefit of east Central Illinois.” They have distributed nearly $16 million to nonprofit organizations in their service area, and they also nurture those organizations through their Center for Nonprofit Excellence and Community Solutions Incubator. President and CEO AlIison Winter came on board in January, having previously worked sales as well as fundraising for The Grainger College of Engineering, and more recently the College of ACES.
With many of our clients thinking about how giving figures into their financial picture, I reached out to Winter to learn more about how CFECI works with potential donors, and financial advisors, to create legacies and address needs in our community. With the passing of the Illinois Gives Tax Credit Act earlier this year, there is a greater incentive to consider establishing an endowed fund with a community foundation, as it provides a 25% State of Illinois tax credit to donors who do just that. The credit taxes effect on January 1st, 2025, and sunsets after five years. You can read more about this at the CFECI website.
Can you give an overview of the mission of CFECI?
Allison Winter: Our mission is to improve the quality of life for all in Central Illinois, and we do that through a diverse, equitable, and inclusive lens. I get to connect donors with their passions and help them create the impact they want to have. We are incredibly donor-centric and focused on making the experience a positive one! We’re able to be that hub of philanthropy and act as a concierge to help donors identify local nonprofits working in our community. All the fees we incur go directly back into the nonprofits across our 9-county service area. We further support our nonprofit partners by hosting training opportunities for Executive Directors and their boards. We host the Community Solutions Incubator to support new and emerging nonprofits. We also provide board training. All of the programs we offer through our Center for Nonprofit Excellence are free to attend, and we are only able to do this because of the generosity of donors in our community.
It is exciting for us to be able to help donors identify what causes and issues are important to them and help find where they can create that impact through their personal giving. Donors might do that through planned giving of assets, through appreciated stock, or through creating a donor advised fund.
If someone comes to you, and is interested in setting up some sort of planning giving, what is that conversation like? How do you work with a potential donor to figure out what makes the most sense for them?
Winter: I ask them who they are, what they do, their values, what types of philanthropy they like to support, and who helps to make these decisions. Usually, people who come in have been giving or volunteering in some capacity. They might have an idea in their mind of an area that is particularly meaningful to them — maybe it’s supporting a student going to college or creating a safe location for folks seeking shelter from domestic abuse or maybe it’s supporting environmental causes or improving local parks. The beauty of CFECI is that we can distribute to ANY nonprofit. We walk through the type of impact a donor wants to create and the process for making it a sustainable impact in perpetuity.
Many times, folks think only of the cash they have in the bank. But we know from research across industry that a person’s wealth is only about 10% cash. So, we talk holistically about assets, such as appreciated stock coming in or property they’ve inherited. Maybe they are coming up on a mile marker birthday — like 70 ½ — and it’s time to think about turning a required minimum distribution into a charitable distribution.
There are lots of ways to have these conversations around philanthropy and creating impact. It takes time, and it’s the donor’s timeline, not mine! That’s important for people to know — again, we are donor-centric. We want to partner with their wealth management person, their accountant, their estate planning attorney and make sure that together we’re creating a gift that makes sense in terms of amount, asset being used to fund the gift, and timing for each individual’s unique circumstance. This is one of the biggest investments a person and their family makes, beyond buying a home and their car. We are here to walk alongside them as they make these decisions to create their legacy.
How do you work with financial advisors and wealth managers to accomplish your donors’ goals?
Winter: We love working with financial advisors and wealth managers. In my role, I get to help donors dream about the change they want to see in the community. As I mentioned, many times a donor is thinking only of their cash in the bank. Our professional wealth advisors know the full scope of their clients’ assets and can help them choose the asset that makes the most sense for the impact their client wants to create. Should we set up a donor advised fund? Should we fund this through appreciated stock and avoid capital gains tax? Should we donate some of the farmland or a different residence? It’s an awesome partnership to be invited to brainstorm together with the donor and their advisor to raise the quality of life across East Central Illinois.
Again, we think a lot about the impact you want to have. Let’s say your someone who’s given to the United Way annual campaign — it’s been taken out of your paycheck for years and you’ve been a volunteer. You want to make sure that you can continue to give to this organization, but now that you’re retired, you aren’t giving directly through the workplace campaign as you once did. What other ways can we help you create that impact now that you’re in a new phase of life? We might think about something that generates income in perpetuity through creating endowed funds, which will last and leave a legacy in the community. It generates renewable income that will grow over time, and you’ll know that the people served by our United Way will continue to receive your support even after you are gone. That’s how we talk through it. We work a little bit backwards. Yes, you can set up a fund for this amount, or are you thinking about something larger? How can we get there together?
Is there a “right” time for someone to start thinking about these things?
Winter: It’s always a good time to think about it! I talk about it all the time because I don’t know when the right time is going to be for it to land with you. We know people tend to change their beneficiaries and estate plans when there’s a life change happening: babies are born, loved ones pass away, etc. These are big life changes and often folks need to recalibrate their intentions. It can feel like an uncomfortable and taboo topic, but it’s one of the things we know for certain in life. And while you’re alive, you get to decide where your money goes — which people and organizations are going to receive those gifts. You worked a long time and it’s your legacy to create. We are here to help talk through how to create impact in your community in a long-term, sustainable way for years
You can learn more about the work of Community Foundation of East Central Illinois and ways to give through their organization at their website.
At Bluestem, we’re not just passionate about providing top-tier financial advice — we’re also dedicated to shaping the future of financial planning. Our Financial Planning Residency program, launched in 2021, is a testament to this commitment. Designed as a two-year immersive experience, this residency is not only a unique training ground for aspiring financial planners, but also a strategic initiative to meet the evolving needs of our clients.
The financial planning profession is dynamic and growing, but the pool of skilled, fee-only financial planners is limited. We saw an opportunity to address this gap while supporting our firm’s growth by creating a program that cultivates the next generation of financial planners. By offering structured, hands-on training, we aim to enhance the quality of advice we provide to clients while helping launch the careers of promising professionals.
This program serves as both a recruitment tool for emerging talent and a way to ensure our clients receive personalized, expert guidance as they navigate their financial journeys.
The Financial Planning Residency is designed to develop a well-rounded, capable financial planner through a phased approach. Over two years, residents gain foundational technical skills and client-facing experience, ensuring they’re prepared to serve clients effectively and confidently.
Year One: Foundational Experience
In the first year, residents focus on learning the inner workings of financial planning. From supporting the creation of financial plans to mastering essential tools and processes, residents build the technical and operational skills needed to succeed. This phase is primarily back-office focused but lays the groundwork for a deeper understanding of client needs.
Year Two: Client-Facing Development
The second year transitions residents into more client-facing roles. They begin to lead client meetings, present financial strategies, and build relationships. This year is all about honing communication and leadership skills, preparing residents to not only offer advice but to guide clients with confidence.
Upon completing the two-year residency, our residents have multiple paths forward. Some may choose to stay with Bluestem as full-time financial planners, contributing to our mission of delivering client-first advice. Others may use the experience, skills, and connections they have built during their residency to launch into the next phase of their careers, with Bluestem’s full support and network at their disposal. Whether they stay or move on, our goal is to help each resident succeed and thrive in the financial planning profession.
We are proud to highlight our current and past residents, each bringing a unique background and perspective to Bluestem Financial Advisors:
Sam Wesley – In the first year of his residency following a robust undergraduate education at the University of Illinois, Sam is already contributing positively to engagements with our clients. He is busy mastering the technical side of financial planning while starting to work on the intricacies of leading a client relationship. Read more about Sam on our website here.
Tim Lee – Currently in his second year, Tim has been a tremendous asset to the team and is focused on continuing to solidify his technical financial planning skills while focusing more on developing strong client relationships and leading financial planning sessions. Read more about Tim on our website here.
Sue Plisch – As many of you may remember, Sue started as an intern with our firm in 2020, helped develop and launch our Residency Program, and graduated from the program to start her own firm in 2023. She has always shown the ability to connect deeply with clients, bringing advanced relational skills to every interaction. Sue’s success story is a testament to the impact of the program and Bluestem’s commitment to fostering future leaders in financial planning. You can learn more about Sue and her new firm by checking out her firm’s website here.
At Bluestem, we believe that nurturing the next generation of planners is crucial for the long-term success of both our clients and the profession. Our Financial Planning Residency is just one of the ways we are investing in that future, offering our clients the best of today’s expertise and tomorrow’s potential.
If you or someone you know might be interested in our open position for June 2025, please check out our job posting!
The Tax Cuts and Jobs Act (TCJA) significantly altered the tax landscape when it was enacted in 2017, but it included a “sunset” provision that goes into effect December 31, 2025. With divided control of Congress and an election ahead, planning for what might happen is very uncertain. Let’s the possible scenarios that could unfold, and how to plan for uncertainty.
Long-term care planning is a critical yet complex process that intersects finances, family, health, values, and emotions. Understanding the nuances of long-term care costs, funding options, and non-financial considerations ensures that clients are prepared for future needs and maintaining peace of mind.
Next month is open enrollment for University of Illinois health plans, and employees will have an opportunity to reevaluate which plan is best for them and their families. The goal is to strike a balance between managing out-of-pocket costs and optimizing financial benefits. How do you do that? We give you some factors to consider.
As accounts have transitioned from TD Ameritrade to Schwab, familiarizing yourself with Schwab's website can make your monitoring easier. Here are some tips to maximize the features now available through Schwab's platform.
If the standard account names are causing confusion, you can easily change them. Navigate to the Account Groups section by clicking on the Profile icon and selecting it from the dropdown menu. Here, you can add and edit account nicknames and group accounts together for better organization.
Download the app for quick and easy access to view your accounts. Our favorite feature? The app makes it easy to deposit checks without running to the bank or Bluestem’s office with the mobile deposit feature.
Want to give your spouse access to your Schwab accounts through their login? It’s simple! Click on the Profile icon and select Account Access from the dropdown menu. This will take you to the Account Access page where you can initiate the process by clicking on the green button. If you encounter any difficulties, reach out to us, and we can prepare a form for you to sign instead.
Missed an email from us to sign account paperwork? Most documents requiring a signature or approval can be accessed conveniently in the Message Center. Look for this icon on the Schwab website:
Reduce clutter and environmental impact by going paperless. Whether through the app or website, it's easy to update your preferences. Simply click on the Profile icon, select the paperless option from the dropdown menu, and make the switch.
Say hello to our neighbors!
The Village: Mental Health Support for Parents just opened their first physical location next-door to us last year! In this guest blog post, Ann Ambrose, facilitator at The Village illustrates the inspiration behind their mission to support parents in the community and women in academia.
Many industries in the last few years have had their services or products impacted by supply-chain issues or labor shortage issues. The world of public accounting, tax preparation, and CPA services have been no different. Don’t wait until the last minute to come up with a plan to find help with tax preparation!
