ARE YOU TIRED OF 3% - 4% - 5% RETURNS FROM YOUR SAVINGS?
A GIFT ANNUITY COULD BRING A 7% - 10% RATE OF RETURN!
Better Returns From Your Savings
Do you depend on certificates of deposit, bonds, and other fixed investments to produce retirement income? Would you like to double your current rate of return? Would you like the higher interest rate to be guaranteed for the rest of your life and for the rest of your spouse’s life?
Annuity rates vary and generally increase with age. A single life annuity for a 65-year-old currently yields 6.7% annual interest. For a 70-year-old it’s currently 7.9%. At age 85 the rate moves to more than 10%! Annuities are also available on two lives simultaneously and/or with a survivor benefit. Rates for two lives are slightly lower than for one life.
In addition to the higher rate of return, a portion of the interest income received each year on a gift annuity is tax free. You also receive a significant tax deduction for the year in which you initially establish the charitable gift annuity. The annuity income is guaranteed to you for your entire life. The guarantee is backed by the full faith and assets of Saint John’s Abbey & Prep School.
Another great way to increase your current income while at the same time converting highly appreciated assets (such as stocks) into cash is to create a charitable gift annuity by making a gift of the asset itself. By making a gift of the actual asset (such as stock that you bought for $10,000 that is now worth $50,000) you avoid all capital gains taxes on the $40,000 gain, you get credit for a charitable contribution of $50,000 and you would immediately begin to earn a high guaranteed rate of return on the $50,000 annuity for the rest of your life and/ or for the rest of your spouse’s life.
Charitable gift annuities have long been one of the more popular estate planning strategies. They’re simple, easy to understand, yield current income for the donor which is partially tax free, and they’re guaranteed. Market fluctuations will not impact a gift annuity. Once you set it up, it’s set for life.
It only takes a few minutes to establish a charitable gift annuity. We will do all of the work for you right here on campus, but you might want to also let your attorney look over the annuity contract once we deliver it to you. Let me know if I can be of assistance in helping you to establish a charitable gift annuity -- if not for Saint John’s, perhaps for another favorite charity. All of my numbers are listed at the upper right corner of this letter.
NOTE: This is not tax or legal advice; consult your lawyer or estate planning specialist for professional advice.
