Retirement Income You Can Depend On

Oct 10th, 2010 | Category: News, Top Story, What's New

 

With the ups and downs in financial markets, many older folks are becoming more interested in charitable gift annuities to create a steady, dependable stream of lifetime income. 

 They like knowing that every quarter they will receive the same amount, year in and year out.

They like the other benefits, too.  Things like a good payment rate and income that is partially tax-free.  They like the income tax charitable deduction they receive and, of course, the fact that they are planning a gift for one or more ministries.

Easy to Do

To learn more, contact Craig Stirtz, President of Lutheran Planned Giving Services, Nebraska. Once he knows your age and the size of your gift ($10,000 or more) that you want to make, and whether it will be cash or stock, he can prepare an easy-to-read gift illustration that will tell you:

¨  How much you will receive for the rest of your life

¨  How much of your income will be tax-free

¨  How big your income tax charitable deduction will be

¨  How your gift annuity will benefit ELCA ministries (congregation, college,

outdoor ministry, social ministry, campus ministry)

Example

Mr. and Mrs. Luther are both 75 years old.  They gift $20,000 to ELCA to fund a charitable gift annuity.  The payout rate for their combined ages happens to be 5.7 percent, which means they will receive $1,140 every year, or $285 every quarter.  (Note:  The rates vary, depending on one’s age and the current recommended rates by the American Council of Gift Annuities.)

The Luthers will receive fixed payments for the rest of their lives.  And even when one of them dies, the surviving spouse will continue to receive the same fixed payments for the rest of his or her life.

You do not have to be married to obtain a gift annuity.  In fact, single-life annuities pay a higher rate.  Also, the older a person or couple happens to be, the higher the payout rate.

Why not take a moment to request an illustration?  Craig would welcome the opportunity to provide a tailor-made illustration that will show you just how well a charitable gift annuity can work for you.  You are under no obligation to proceed with a gift.