Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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Charitable gift annuities
My husband and I are considering charitable gift annuities this year for the tax benefits and setting up an income stream. Does anyone have experience with these? Anything we should be looking out for?
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#2
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I would suggest contacting either Vanguard Investments or Fidelity Investments to explain and to handle the transaction.
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#3
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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. |
#4
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#5
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#6
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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. |
#7
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That's why you don't go to a salesman. Instead go to the investment firm or the charitable foundation.
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#8
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#9
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You also get to support a cause that is important to you. And you don't have to think again about how to invest this money. So your life is simplified. Anyone thinking about this strategy should talk to their CPA/tax accountant before proceeding. |
#10
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#11
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We are aware of the following downsides: if any of these charitable organizations go out of business, we are out of luck. At the end of our lives, there is no portion going to our beneficiaries. Also, the contracts are irrevocable. And there is no allowance for inflation. So again, are we missing something? |
#12
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#13
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Make sure you verify the tax deduction limits on charitable donations. You are only allowed to deduct a certain percentage of your income.
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#14
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See post 10!
So right! Not just an alternative, but a much better idea. And there a many better alternative as well. Talk to your CPA and financial advisor for sure.
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#15
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Hubby is 80
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And yes our income this year allows the calculated deduction fully- definitely agree it’s smart to verify that. Well we’re still thinking back and forth on this. Have not made up our minds. Very much appreciate the comments. |
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