Financial planners tell us, and a recent survey confirms, that many seniors are concerned they may run out of money before they run out of life. If we knew the day we would die, planning our assets would be a much simpler process. But, we may plan to live until we’re 85 and budget accordingly, only to find we’re still going strong at 90.
Are there ways to make sure you don’t run out of money? Yes! One way is with a charitable gift annuity. In these days of very low interest rates, a gift annuity may help you increase your income.
Mary, age 75, wanted to make sure she would always have some fixed income. She established a gift annuity with a gift of $50,000. The gift annuity will provide her with a 7.1% annuity, or $3,550 per year, that will continue throughout her life. She feels more secure knowing that amount will always be there. In addition to peace of mind, she will receive other financial benefits such as a current income tax deduction of over $20,000. Approximately $2,417 of her annuity income will be tax-free for her government calculated life span of 12.4 years. She also is happy knowing that she is making a gift that will benefit the Lord’s work and will be paying spiritual dividends long after her passing.
If you think locking in some income for life is a good idea please contact Jerry Opp.
