Fixed Income for Retirement
After traveling around the world, Nathan was ready to retire. He owned some stock but was concerned about leaving it in the market where it could go up or down and he also needed a secure source of retirement income for the future. Nathan: I bought some stock a number of years ago and overall this was a good investment for me. However, I was uncertain about leaving my savings in the market where I knew it could fluctuate dramatically. I needed something more secure for my retirement years. Ideally, I wanted to know I would have the income I needed and that it would not change with the markets.
Nathan talked to a friend who had found a good choice. His friend had set up a gift annuity with a favorite charity and thought perhaps a gift annuity would be helpful for him.
Nathan: I called and asked about a gift annuity. I was very pleased to discover that I would receive a good payout based on my age. Plus, there would be a charitable tax deduction and part of the income would be tax free.
I transferred my stock for a charitable gift annuity. I was delighted with the fixed payment I received. I avoided part of the capital gains tax and my CPA was pleased that my charitable deduction will save taxes this year. With my tax savings and increased income, I plan to do more traveling!
Please note: The name and image above is representative of a typical donor. Since your gift annuity benefits under federal rules may be different from this person, you may want to click here to view a color example of your gift annuity benefits based on your age.