You’ve worked hard for decades – and it’s about time to enter the next phase of your life. You’ll have time to catch up on those books you’ve been meaning to read, travel to places you’ve dreamed of visiting and perhaps volunteer for that charity you’ve always admired.
But a pleasurable retirement requires sound financial planning. How can you be sure you’ll continue receiving the lifetime income you need and not have to worry that you’ll have enough?
There are many answers to that question, and we strongly recommend you seek the guidance of a professional financial advisor to explore your options. One of them, which will also help you establish a legacy at the Arthritis Foundation, is called a Charitable Gift Annuity.
A Charitable Gift Annuity can be a great retirement planning tool for several reasons. Among them:
- Receive a fixed income for life.
A Charitable Gift Annuity is a contract where, in exchange for a gift to the Arthritis Foundation, we agree to pay you (and/or a loved one, such as a spouse, child or friend) a fixed income for the rest of your (or their) life. You could also receive an income tax deduction for a portion of your gift. After you pass away, the Foundation would use the remainder of your gift as you’ve directed.
The fixed income can be paid to you annually, semiannually or quarterly, and can even be deposited directly into your bank account. You can use cash, stocks, bonds and mutual funds to fund your annuity. Charitable Gift Annuities funded with long-term appreciated assets may receive certain additional tax advantages.
- Take a deduction now and pay later.
With a “deferred” gift annuity, you can make a gift now and possibly realize an immediate income tax deduction, but have your payments begin in the future. If you haven’t quite retired and are still drawing a salary, taking your income tax deduction now may be particularly valuable because it could offset some of the taxes you would otherwise pay. Scheduling your payments to begin in a later year may be tax-efficient because you could be in a lower tax bracket or living in a state with a lower (or no) state income tax.
- Make a difference in the lives of others.
Perhaps the best thing about a Charitable Gift Annuity is the positive impact it can have on the vital work of the Arthritis Foundation. For example, many donors who have established a gift annuity with us have directed that their gift ultimately be used to provide funds for research. Others wish to assist with our advocacy efforts or help those who suffer from juvenile arthritis and their families.
If you’re interested in exploring how to establish a Charitable Gift Annuity at the Arthritis Foundation, please visit our planned giving webpage. You can also contact us toll-free at 866-528-8687 or at [email protected]. We can provide information to answer the questions you have, including a personalized illustration.