In this era of volatile stock markets and low interest rates, people often ask me about charitable gift annuities. Are they right for you? Maybe.
Most charitable gift annuity donors are retired, want to increase their cash flow, seek the security of guaranteed payments and would like to save on taxes. Charitable gift annuities provide a “certain return” during volatile economic times.
A charitable gift annuity could be right in the following circumstances:
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Interest rates on your CDs and other fixed income investments have declined.
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You own appreciated stock or mutual funds and are considering selling some of the shares and reinvesting to generate more income but do not want to pay tax on the capital gain.
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You would like to count on fixed payments which are not affected by interest rates or stock prices and which you cannot outlive.
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You want to assure your surviving spouse a stream of income without the delay of probate proceedings.
Here are a few sample rates for a single life and two lives:
Age Single Life Two Lives
70 5.1% 4.6%
75 5.8% 5%
80 6.8% 5.7%
85 7.8% 6.7%
90 9% 8.2%
Contact your attorney or financial advisor for counsel before establishing a charitable gift annuity.
For additional information or the rates for your age, please contact us toll-free at 1.800.643.6543, ext. 2714.