February 16, 2024

Random Acts of Kindness Day: Engaging Your SDIRA with Graciousness

Written By: Daniel Gleich

Key Points 

  • Saturday, February 17 marks Random Acts of Kindness Day: a holiday originated in New Zealand and founded by the nonprofit organization, Random Acts of Kindness Foundation.
  • There are several ways to exhibit thoughtfulness and demonstrate clemency and grace. Equally, you can implement this courtesy through different processes connected to your Self-Directed IRA (SDIRA).
  • Enroll your retirement savings to participate in altruism on this special calendar day. You can do so by donating to a charity and converting your required minimum distributions into qualified charitable donations.
  • In the same token, consider naming someone as a beneficiary or potentially investing in a philanthropic startup or initiative.
A girl lies on the grass, holding the world in the shape of a heart, promoting Random Acts of Kindness Day.

Random Acts of Kindness Foundation is an internationally acknowledged nonprofit organization. Through its deeds, it has managed to establish Random Acts of Kindness Day - an official calendar date serving as a reminder to give back to your community. 

Through studies, such as the one performed by National Academy of Sciences, dopamine is typically released when performing a charitable act. Therefore, not only are you making someone’s day burn just a little brighter, but you’re also feeling considerably better as a result. An exciting endeavor could be tapping into your Self-Directed IRA (SDIRA) to put your retirement funds towards an act of generosity. Through a variety of pathways, you can help heal our world with compassion and gentleness with your retirement savings. 

Share the Love and Pay In-Kind

A coffee cup sits beside a napkin containing a sketch saying, “pay it forward.”

Many of us have heard the phrase, “pay it forward.” Some of us have even participated in this nationwide trend. For example, if you’re ahead of someone in a drive-thru or perhaps in front of a waiting customer at a coffee shop, you can surprise them with the random act of paying for their order. It’s a touching sentiment, and if carried on, may activate a circulating line of openhandedness. 

You can also pay it forward by taking IRS compliances and twisting it into social conscience. Consider utilizing required minimum distributions (RMDs) for charitable donations. These donations may be capable of being tax-free so long as you meet the following expectations: 

  • Age requirement of 70 ½ and above. 
  • Your donation destination is a qualified 501(c)3 organization. 
  •  Your IRA account permits qualified charitable donations (QCDs). This is accepted through a Self-Directed Traditional IRA, Inherited Traditional IRA, an inactive SEP IRA, or an inactive SIMPLE IRA. 

Curbing Hunger and Constraining Deficits

According to World Vision, 10% of the global population goes to bed hungry, totaling an average of 828 million people worldwide. Dropping off a load of food at a food pantry or supplying groceries to a shelter could provide someone with nourishment. Through research, you can discover participating food drives in your area that diligently work to give the less fortunate access to meals. 

In addition to this generous contribution, your Self-Directed IRA can potentially be employed to prevent food shortages in the future. Consider investing in a private small business or philanthropic startup geared towards feeding communities or an organization that deeply resonates with you.  

If you have an interest in real estate, purchasing farmland through a Self-Directed IRA can allow you to grow food and provide it to sources that help fuel the populace. If you’re lucky enough to come across a brilliant mind with an idea on how more food can be generated, you can invest in a patent and help their invention manifest. Through this, you’d be feeding the world through the spark of someone’s imagination. 

A group of people participate in a local food drive to feed the less fortunate, just as with your Self-Directed IRA, you can also invest in initiatives that help provide fuel to the population.

Send One Your Love with a Dozen Roses

A daughter surprises her mother with flowers, displaying an act of love on this Random Acts of Kindness Day.

It doesn’t have to be roses – any beautiful flower arrangement will do. Send a bouquet of flowers to a random patient at a hospital or a random resident of a nursing home. Seeing a colorful arrangement and smelling the fragrance of florals could be the pleasant surprise needed to transform a regular day into an extraordinary one.  

There is a plethora of people grinding in the background of our everyday lives, who do not often receive their deserved recognition. Another viable act of kindness would be sending a thank you letter to your local fire department, police station, post office, and USPS delivery team. These individuals dedicate their livelihood to serving others, regardless of what’s going on in their immediate environment. 

Your Self-Directed IRA can plant a seed of kindness for many. Just watch where the flowers bloom: 

Help Someone Embark on a New Journey This Random Acts of Kindness Day

If you know someone who’s just entering the workforce, or who has been on the hunt for a job but isn’t having any luck, you may be able to utilize your skills to help them better market themselves. You can help someone recreate their resume or cover letter. If needed, you can provide a letter of recommendation and confirm your stance as a reference. Depending on the persons’ goals and your experience in their respective industry, you can give them a leg-up by teaching them how to use specific software or perform mandatory tasks that would be required in their desired position. 

Sometimes naming someone as a beneficiary to your Self-Directed IRA can be like giving someone their start. Leaving behind an investment or savings may help an individual or business rise above financial difficulty. This act of kindness merges with your legacy, and it becomes the parting gift they will remember you by. 

A steamy car window with a drawn-on heart, reminding us to be intentional with our actions and to think of others with our decision making.

Conclusion: Kindness Never Feels Random 

A young boy feeds a group of birds' bread, which we do not recommend as it's bad for their digestion. What we do recommend is utilizing your Self-Directed IRA this Random Acts of Kindness Day.

Maya Angelou once said, “At the end of the day, people won’t remember what you said or did, they will remember how you made them feel.” Even if it isn’t premeditated, and you choose an arbitrary individual to bestow your kindness on, it will still hold meaning to the person that experiences it. 

This Random Acts of Kindness Day let’s be intentional about our actions. What’s exceptionally tremendous, is we can even be intentional with our Self-Directed IRAs. Together, we can make spreading joy a habitual practice. 

Want to apply your retirement savings for the greater good? Contact a Self-Directed IRA Specialist today to learn how. 

Disclaimer: All of the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

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