Scott Thomas, ChFC®, CAP®, CKA®, RICP®

Personal Charitable Pension Strategy

Personal Charitable Pension Strategy

Who benefits? You personally benefit as you gain a lifetime of tax-advantaged income or you can choose a joint lifetime pension option. Next it benefits “your” favorite causes and nonprofits today or in the future and it is “your choice”.  Boomers often do not have pensions and have a need to convert assets to income with certainly and to do so in a tax advantaged manner only makes sense. Are there certain types of assets that work better than other assets? Yes, highly appreciated assets are the best for funding your pension.  Pension funds are secured by unrestricted assets: large Public charity with more than $4 billion assets unrestricted and usually A+ insurance carrier also backing the assets for reinsurance as backup plan should the assets ever become at risk in the future.

You could achieve something similar by selling assets and paying taxes and then invest the proceeds into a Single Premium Immediate Annuity (SPIA). This will provide a lifetime of income on a single or joint basis as well. How does SPIA method compare to the Personal Charitable Pension? Well first the taxes on assets sold upfront often create negative affects on other income today.  The taxes are still paid on Personal Charitable Pension but stretched out over lifetimes instead of upfront. Next, because there is charitable aspect to the Charitable Pension there would be upfront charitable write off or deduction potential depending on personal income and taxes. What most individuals find is the opportunity to do other tax savvy planning like converting a portion of IRA to ROTH IRA tax-free forever or opportunity to sell stock or real estate zero tax because of the charitable aspect. Donor chooses if they want to impact a charity today or in the future and if decide to defer to later date or at death the money can still earn and be invested to benefit charitable purposes beyond what seems possible.  Donor is in control. Great news the application is short and easy and does not require the assistance of legal documents or legal professionals. Easy to implement and get started today- call Scott Thomas; CAP; Stewardship Matters, Inc. for free assessment of your situation and if appropriate we send you detailed illustration. Act now and call for your one on one conversation with experienced Chartered Advisor in Philanthropy. 407-644-9411 ext. 2 or email scott@stewardshipmatters.net

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