Quote:
Originally Posted by Redsmom
Hmmm, Well since an investment company will not make a penny from our charitable gift annuity, not sure they would have any interest in talking to us.
I am surprised that these are not more popular in the current market where you can’t earn any reasonable interest rate safely. Besides the considerable tax benefit, what attracts us to this vehicle is guaranteed interest rates of 4.3% for me at age 66, and 6.5% for my 80 year old husband. And this is for life. IF we aren’t missing something - which is why I am here.
|
Actually, the investment company *will* charge the annuity a fee for their management services. That's why you want a low-fee company. They need to cover their management costs, including the cost of sending you money monthly (or quarterly, or whatever you decide) and complying with government requirements.
My career was in the non-profit sector. We loved it when a donor set up a fund like this for us.
In my hometown, we used the Greater (Hometown) Foundation to manage such annuities and other types of donor-advised funds. As a non-profit themselves, their fees were very low. And the local perspective was valuable. They were pleasant to work with. They used professional money managers for the billions they had under management.
Of course, you are aware that at the end, the funds go to the charity and not to your heirs.