Gift annuities shine in a tough economy
Wycliffe Foundation
English - March 04, 2009 19:09 - ★★★★★ - 1 ratingGovernment Business Non-Profit gift planning estate design annuities wills bequests donor advised funds Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
By Charles Schultz, JD, ePMT, President, Crescendo Interactive, Inc., Guest columnist Interest rates were in a dramatic decline during 2008. With the Congressional Budget Office predicting a challenging year for 2009, it is quite possible that CD rates and bond yields could fall again. During 2008, the stock markets set two records—neither of which is […]
By Charles Schultz, JD, ePMT, President, Crescendo Interactive, Inc., Guest columnist
Interest rates were in a dramatic decline during 2008. With the Congressional Budget Office predicting a challenging year for 2009, it is quite possible that CD rates and bond yields could fall again.
During 2008, the stock markets set two records—neither of which is comforting for seniors. First, the general market declined about 40% for the year, primarily during the last four months of 2008. Second, the markets also set volatility records, having more days with changes in total market value of 4%, 5% and even 6% than have occurred in many decades.
With dramatic stock market changes during the past year, many individuals have sought the safety of short-term government notes and FDIC-insured savings accounts. While the government 90-day Treasury bills were popular because of safety, they have declined to nearly zero return for the first time in history.
Certificate of Deposit (CD) rates are still somewhat higher, with a one year CD currently at 2.6%. But with the soft economy, it is quite possible that the CD rates in 2009 could decline even farther. So the question many seniors are asking is, “How can I have good security and higher payouts?”
An excellent solution is a charitable gift annuity (CGA). CGAs are a commitment of the charity and backed by an annuity reserve fund. Fixed payments are a great benefit of CGAs. The rate may be 6%, 7% or 8% or even higher—maybe two or three times as much as Treasury bills or CDs.
With quarterly or monthly payouts, you will be receiving substantial and secure income for your lifetime or the lifetime of your spouse. To find out more about CGAs, visit http://www.WycliffeFoundation.org/cga.
Charles Schultz is a California attorney who specializes in charitable giving and estate planning. He is principal author of the Crescendo Planned Giving software and the GiftLegacy Pro eMarketing system and writes, speaks and publishes extensively.