Are you frustrated by volatility in your retirement savings portfolio? Would you like to have a dependable income stream that never changes for the rest of your life? Did you know that it is possible receive an immediate tax deduction and an attractive payment stream for the rest of your life and make a meaningful gift to the Montgomery College Foundation at the same time? It is called a Deferred Charitable Gift Annuity, and the Montgomery College Foundation offers it.
"Deferred Charitable Gift Annuities are great planning tools because they are part investment and part gift to the Montgomery College Foundation, for example," said Lena Barnett, estate planning attorney. "And you don't have to worry about market fluctuations with the principal amount you contribute. You receive the same attractive payments for the rest of your life or for the lives of one or two people you designate. And, a charitable tax deduction just sweetens the deal! I typically recommend charitable gift annuities to clients who can set aside between $10,000-$200,000 when they want an attractive rate of return and no payment fluctuations. In fact, I have many clients who are repeat gift annuity customers whenever a CD comes due!"
Deferred Gift Annuities are especially attractive because while you may not need an income stream yet, you think you will need it at some point in the future, perhaps at age 65 or 70.
Example: If you establish a deferred gift annuity at age 50 and think you would want payments to begin at age 65, the compounded interest rate you would receive at age 65 will be 11.3%. (Please see the attached document for a complete table explaining the principal amounts for one-person and two-person plans.)
Montgomery College Foundation's minimum age to establish a deferred gift annuity is age 50, and for immediate-payment gift annuities the minimum age is 60. The minimum amount is $10,000 per gift annuity. Montgomery College Foundation adheres to the rates recommended by the American Council on Gift Annuities.
For further confidential information specific to your situation, please contact Elana Lippa, director of gift planning, at 240-567-5287 or elana.lippa@montgomerycollege.edu.
