Case Studies of People Just Like You

Provide Retirement Income for Donor or Donor & A Loved One

When we met Bill, he was 70 years old, and a retired manager from the US Postal Service. He owned an underperforming Certificate of Deposit and needed income. He also had a son, Ryan, aged 48, who had his own security business. Bill could purchase a $100,000 54Freedom Gift Annuity and receive $5,800 annually for life with a guarantee of at least 15 years (a feature not available with a traditional gift annuity), or instead, buy a joint annuity with Ryan as a second beneficiary. Under that arrangement, Bill could receive approximately $4,000 annually for life and, upon Bill's death; Ryan would receive the same amount for his life. Under both scenarios, Bill was assured of being able to make a donation.

Provide Retirement Income for Donor & Two Loved Ones

Felma was aged 81, comfortably retired from a career in nursing and has $575,000 in a stock portfolio. She wished to create an income for life for herself as well as help her son Mike, age 52, and daughter, Ann, age 55, both of whom were approaching their retirement years (the flexibility shown here is not available with a traditional charitable gift annuity). Additionally, she wished to support the local chapter of ASPCA, where she volunteers weekly.

Felma purchased a $575,000 54Freedom Gift Annuity. $325,000 was assigned to her and $125,000 to each of her children. She received $24,050 per year for the rest of her life with a guarantee of payments for 10 years. Her son will receive $5,388 annually for life with a guarantee of at least 20 years. Her daughter, would receive $5,387 annually for the rest of her life with a guarantee of at least 20 years. She also took a $127,756 deduction for donations.

Based on Felma's tax rate, she will realize $42,159 in tax savings.

Minimize Estate Taxes and Provide Income for Donor and Donor Family

Ellen was age 68 and had inherited an IRA for $425,000. She wanted to create an income for life for herself and provide income for her son Michael, aged 42, and daughter, Emily, aged 38. Additionally, we helped her to create a deferred income stream for Michael's son, Carl ,and Emily's son Ed, aged 10 and 14, respectively (the flexibility shown here is not available with a traditional charitable gift annuity).

Ellen purchased a $425,000 54Freedom Gift Annuity. $125,000 was assigned to her and $125,000 each to her son and daughter. Additionally, $25,000 was set aside for each of Michael and Emily's children. Ellen received $7,125 per year for the rest of her life with a guarantee of at least 10 years. Michael will receive $4,413 annually for life with a guarantee of at least 20 years . Emily will receive 4,138 annually for life with a guarantee of at least 20 years. Additionally, Ellen avoided paying $35,294 in Federal Income Taxes.

Disclaimer: The examples given are fictional and designed to be illustrative of case development concepts for use by you, working together with your legal and financial advisors, to determine whether our products might be right for you. Always consult your tax and legal counsel in estate planning, and before entering into a Charitable Gift Annuity transaction.