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Examiner
  • Phil Hanson: Consider giving for the long term

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  • There is a lot of talk about baby boomers and retirement planning now that our metro community is experiencing more than 2,000 boomers every month reaching retirement age. Obviously, it’s important to plan for your retirement income, and I want to share with you some thoughts on an often overlooked retirement income tool, a deferred charitable gift annuity.
    A charitable gift annuity, or CGA, can be an important tool to produce income in your retirement years and leave a legacy for charities that are important to you. The basic concept is that you make a gift to a charity with the guarantee of receiving an annual amount of income for the rest of your life. You also receive an immediate tax deduction when you make the gift, and the remainder after you die then goes to your favorite charity.
    Boomers should consider a deferred charitable gift annuity. Like an immediate gift annuity, a deferred gift annuity will give you an income tax deduction, capital gains benefits and dependable, fixed payments for life. However, with a deferred gift annuity, you choose the start date. It could be one year from now, or 10, or 20. You choose. The longer the delay (or deferral period), the higher your payment rate will be and the higher your income tax deduction will be, too.
    Many charities like the Truman Heartland Community Foundation will establish a CGA with as little as $10,000. So, a 52-year-old who created a CGA now and deferred payment for 15 years until retirement age of 67 would experience the following benefits:
    • An immediate tax deduction of $3,700.
    • At age 67, an annual payment for life of $770 a year, with over 40 percent of this being non-taxable income.
    • And she would also know that her favorite charity would receive a legacy gift of $42,000 at her death (assuming a 6 percent average annual return on investments).
    This tool provides two types of security – guaranteed annual income for life and knowing that charities that you care about deeply will continue to receive your support. If you are interested in learning more about a deferred charitable gift annuity and would like us to provide you with a complimentary illustration, please give us a call. We work with many nonprofits in the Eastern Jackson County community and would be pleased to help you support your favorite charity.
    Phil Hanson is president and CEO of the Truman Heartland Community Foundation, based in Independence.
    There is a lot of talk about baby boomers and retirement planning now that our metro community is experiencing more than 2,000 boomers every month reaching retirement age. Obviously, it’s important to plan for your retirement income, and I want to share with you some thoughts on an often overlooked retirement income tool, a deferred charitable gift annuity.
    A charitable gift annuity, or CGA, can be an important tool to produce income in your retirement years and leave a legacy for charities that are important to you. The basic concept is that you make a gift to a charity with the guarantee of receiving an annual amount of income for the rest of your life. You also receive an immediate tax deduction when you make the gift, and the remainder after you die then goes to your favorite charity.
    Page 2 of 2 - Boomers should consider a deferred charitable gift annuity. Like an immediate gift annuity, a deferred gift annuity will give you an income tax deduction, capital gains benefits and dependable, fixed payments for life. However, with a deferred gift annuity, you choose the start date. It could be one year from now, or 10, or 20. You choose. The longer the delay (or deferral period), the higher your payment rate will be and the higher your income tax deduction will be, too.
    Many charities like the Truman Heartland Community Foundation will establish a CGA with as little as $10,000. So, a 52-year-old who created a CGA now and deferred payment for 15 years until retirement age of 67 would experience the following benefits:
    • An immediate tax deduction of $3,700.
    • At age 67 ,an annual payment for life of $770 a year, with over 40 percent of this being non-taxable income.
    • And she would also know that her favorite charity would receive a legacy gift of $42,000 at her death (assuming a 6 percent average annual return on investments).
    This tool provides two types of security – guaranteed annual income for life and knowing that charities that you care about deeply will continue to receive your support. If you are interested in learning more about a deferred charitable gift annuity and would like us to provide you with a complimentary illustration, please give us a call. We work with many nonprofits in the Eastern Jackson County community and would be pleased to help you support your favorite charity.
    Phil Hanson is president and CEO of the Truman Heartland Community Foundation, based in Independence.

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