Retirement Income for Life with a Senior Tax Break
Most people think about charitable bequests as part of their will or trust to be consummated when they die. However, you will miss some senior tax breaks if you wait until death. If you attend to these charitable giving issues while alive, there are some big tax breaks available and a decent income for life.
Charities are happy to pay you money if you help them. It’s called a charitable gift annuity and here’s how it works. You make a single contribution and based on the amount of that contribution, your age and current interest rates, you receive a set income for life. Think of this like making any other retirement income investment. You invest and get a lifetime income.
Don’t shop around with charities for the highest rate of return, though, because most large U.S. charities offer yields set annually by the American Council on Gift Annuities in Dallas. This benign collusion among charities, which began casually about 70 years ago, was finally legalized by Congress.
A gift annuity’s yield varies according to your age and the date you make your gift (see table below effective 1/1/09). Since a portion of your income will be considered a return of principal, part of your annual income will be tax-free. How much depends on your age. Additionally, you get a tax deduction for your gift as shown on the above table.
Age Payout Rate Deduction as % of gift
65 5.7 34.2
70 6.1 38.4
75 6.7 43.4
80 7.6 48.3
85 8.9 51.9
90 and over 10.5
If you have charitable intentions but want to retain income from your donation, most any charity will show you how to set up a charitable gift annuity. Your donation does not need to be cash—you could donate appreciated securities or land that currently pays you nothing and also save on capital gains tax.
Financial Advisors who can help seniors get tax breaks: ProspectMatch
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Tags: charitable gift annuity, income for life, retirement income, senior tax break
February 17th, 2009 at 8:30 am
What a fantastic opportunity to share more of your wealth with a favorite cause while retaining financial confidence.
Thanks!
February 17th, 2009 at 11:43 am
Property taxes are another thing that I feel should be capped at retirement. This seems to creep up every year as the house is worth more. Medical supplies should also be tax free for seniors!
February 24th, 2009 at 8:45 pm
Interesting topic to explore further !
I, as a retired 67 years old single man, is looking to establish my own charitable foundation which would also provide my cost of living while I am alive.
Would appriciate any input from other readers in this regard.
March 1st, 2009 at 9:05 am
This is also my aunt’s main concern as she has acquired quite a lot of real estate properties. As for this charitable income investment, it’s a good way of having income even for retirees. At the same it serves good intentions.
March 3rd, 2009 at 11:04 am
I like that idea. You get to gift what you wnat and still have income. I like the fact you get tax deduction also. If anyone wants to give to charity i think this is the best way to to it.
April 3rd, 2009 at 2:22 pm
Great advice, I’m a little confused as to the whole process and will be talking with my tax person here shortly. It’s cutting it close and time is running out but I need to make absolutely sure that I’m not missing anything here in the coming weeks.
April 5th, 2009 at 8:23 am
This would certainly help promote giving to charities, but also charities would benefit by being 100% transparent where their money goes. Even better, you could donate your money to a specific person/cause within the charity (some charities do this, it would be good if a lot more charities did this). People are (sometimes quite rightly) cynical about how charities spend their money.
April 10th, 2009 at 7:49 am
I didn’t know about a gift annuity until I just read your article. I can’t help but wonder how many other people out there know about it. In our present economic times, this information is a mighty powerful thing to know about. It sounds like a better bet than to invest in the stock market now days. I am going to find out about how I can get involved. Anything we can do to provide for ourselves after we retire is a big plus.
April 12th, 2009 at 6:03 pm
Always like to see people spreading the charity love. Im lucky that I work for a company (Apex Professionals) that has the resources to do that sort of thing. We just cut a check this past december for $12k to world vision to have a well built in the zambia. Thanks for the article. Good read.
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April 12th, 2009 at 7:41 pm
Great post! there are many ways to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, esp. in this market. It is in your best interest to find these alternative channels before you die. Isn’t the death tax at around 40-45% these days?
April 14th, 2009 at 11:41 am
I haven’t thought much about my retirement plan except for the simplified 401K contributions we have at work. People have been saying that investment in stocks and bonds on long-term hold may not be the wisest thing to do these days. Thank you for sharing this information with us! I hope to know more about these stuff.
April 18th, 2009 at 12:41 am
I run an international real estate website covering 70 countries, The US right now is the place to invest and gain a retirement income, Western New York State and Florida seem top places for overseas property investors with retirement income in mind , interesting blog
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May 2nd, 2009 at 6:13 pm
This is also my aunt’s main concern as she has acquired quite a lot of real estate properties. As for this charitable income investment, it’s a good way of having income even for retirees. At the same it serves good intentions.
May 2nd, 2009 at 6:16 pm
Interesting topic to explore further !
I, as a retired 67 years old single man, is looking to establish my own charitable foundation which would also provide my cost of living while I am alive.
Would appriciate any input from other readers in this regard.
May 4th, 2009 at 2:40 pm
personally i would not use any charity fund that did not use the rates set by the American Council on Gift Annuities anything other than that would sound fishy to me
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May 7th, 2009 at 3:47 am
This is really good for encouraging more people to give to charity. During these difficult times it is charities that are probably most forgotten as people concentrate solely on their own survival. Thanks for the information and i hope this post helps others to take advantage of these tax breaks.
May 8th, 2009 at 7:36 am
This would certainly help promote giving to charities, but also charities would benefit by being 100% transparent where their money goes. Even better, you could donate your money to a specific person/cause within the charity (some charities do this, it would be good if a lot more charities did this). People are (sometimes quite rightly) cynical about how charities spend their money.
May 9th, 2009 at 6:15 am
I did not even know that such a things as a charitable gift annuity even existed. But it sounds like the perfect way to make a decent investment and still be helping people at the same time.
May 14th, 2009 at 2:16 pm
With the present world wide recession going on, charities must be the last thing people consider as a way of making a good return on any savings and also the first to suffer from dwindling donations. This sounds like an ideal way of investing your money and helping those that most need it in these hard times.
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May 14th, 2009 at 6:17 pm
Property taxes are another thing that I feel should be capped at retirement. This seems to creep up every year as the house is worth more. Medical supplies should also be tax free for seniors!
May 19th, 2009 at 9:07 pm
Giving to charity is never a bad thing. You can’t go wrong in situations where real estate investors and those in need are able to benefit at the same time.
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May 21st, 2009 at 5:58 am
Payments from a charitable gift annuity are fixed from the outset. They will neither increase nor decrease, whatever happens to interest rates or the stock market. A charity is contractually obligated to make the payments, even if it has to dip into its general funds to do so
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May 23rd, 2009 at 2:01 pm
I too had not heard of charitable annuities. How does one protect from the Charity going under? Are the charity contributions insured? I believe more would give, except no one knows there actual life expectancy. The Government needs to step in and relieve the burnden not on the retirees by date of retirement but by age. I mean the guys in the NBA retire in their early 30’s. I’d like to see seniors get a real break so they don’t have to worry.
May 25th, 2009 at 9:04 pm
Well I guess this would be really helpful in these hard times with the economy all gone nuts. Seniors really need to be respected and I think this would be one way to do that.
May 30th, 2009 at 1:23 am
Charitable gift annuity is a very very good idea. Most people after retirement think about charity and this plan helps them. It would be great if everyone can select their percentages manually. I think it will be more successful if they can do it.
June 1st, 2009 at 3:54 am
The idea of not giving up a part of your hard earned retirement fund in the form of taxes is fantastic. It’s the age old story the world over - you work hard and get taxed then retire and get taxed on the money you’ve already been taxed on!
June 1st, 2009 at 1:03 pm
Very interesting. I find it very important to donate to charity even without the tax benefits. But you can help yourself and others.
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June 4th, 2009 at 4:50 am
I am Andrew from Australia. We don’t really have this type of structure in oz although charitable and also green donations receive very favorable tax treatment.
This is a real win/ win scenario because the Governments in most countries realise that only private enterprise and public donations can alleviate the enormous cost of social problems. I love seeing really sensible, solution based lateral thinking, in dealing with the growing needs of the disadvantaged among us.
June 6th, 2009 at 11:51 pm
This is the first time I’m getting to know about “charitable gift annuity.” I’ve read the post and it was very informative. Specially the table made me understand everything. Thanks for sharing the information.
June 8th, 2009 at 3:38 am
Charities need all the help that they can get so to get some tax relief for doing so is a great win-win idea. Charities may be forgotten somewhat in the current climate too, so this is a good thing, and you’re right to publicise it. Personally, i run some art projects teaching about different artists to children, and its very hard to get funding from traditional means.
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June 9th, 2009 at 5:07 am
There are some companies who claim to be a charity company and take the scratch out of these innocent retired people. So we should be always careful about what we are doing and are we sure about what kind of investment we are going to afford
June 15th, 2009 at 10:06 pm
I like the idea of a gift annuity. You get the best of both worlds. Donate and tax break and income. Someone should list the charities that do this or how to set it up.
June 17th, 2009 at 1:53 am
What a fantastic tip - I will certainly be passing this on to my folks who would almost certainly be able to benefit. It would be great to see a table showing potential incomes from a range of different donation amounts, to get a clearer example of what this could mean - any chance of doing this? Thanks!
June 19th, 2009 at 11:52 am
Why does age have to be such a factor. I’m 28 and I would love to have a return on a gift to my favorite charity.
June 19th, 2009 at 11:54 am
It looks like you have to be over the retirement age to qualify. I agree with Keegan that you should not have to be old to get these kinds of returns.
June 21st, 2009 at 1:24 pm
What about self employed people? I need to set someting up :/
June 22nd, 2009 at 8:48 am
Great article. I never knew there was such a thing called gift annuity. Seems like a well organized scheme. My dad would be very interested in this. The post is very informative. All the information we need is there. Thanks for sharing.
June 25th, 2009 at 2:16 am
I like this idea also, I wonder what senior tax break will do in the world of finance.
June 26th, 2009 at 2:12 pm
I dint know there is something like this actually . Very interesting investing method for retired people. In the end of the day your money will be safe al least. Thanks a lot for sharing this article.
July 5th, 2009 at 9:25 pm
Certainly an interesting article. The idea of gift annuity is really a good idea i believe. The ideal thing for elders. Appreciate the article. Cheers
July 9th, 2009 at 2:16 pm
This is an excellent idea for large and small businesses alike. I don’t dispute that encouraging charitable donations through tax relief can only be a good thing. I’ll throw this point in for discussion though - is it at the expense of the every day tax payer to subsidize schemes such as these?
July 10th, 2009 at 4:37 pm
Well like the article says don’t wait till you die for tax breaks
July 10th, 2009 at 10:01 pm
Hey good information about tax breaks. I can’t believe it jumps that much over the 5 year periods. I guess after the past year one donating securities would be a good idea, as theyll be low for a while and instead of selling them low donate them to grow.
July 12th, 2009 at 8:43 am
Well its good that people can actually get something back after working and paying tax for most of our lives. What they should do is offer interim breaks when you get to 30, 40, 50, and 60 and then put this in place. It would be more rewarding.
July 13th, 2009 at 4:15 am
That’s so true. Society and Governments need to look for, or create and encourage these win/win situations.
Encouraging charitable works by way of taxation icentices has worked in the past and will become increasingly vital as Government revenues decline and social security costs increase with aging populations across the planet.
July 14th, 2009 at 11:52 am
If you are double dipping you likely don’t need all of the money each month..so public employees can “defer” their wages until such time that they are no longer working two jobs and in a lower tax bracket. ONLY a public employee would argue that this is good policy while at the same time forcing everyone else to pay their fair share and then some. No one else but public employees enjoy this tax scam.
July 15th, 2009 at 12:57 pm
This is just wrong. People that have worked their whole lives, paid and paid taxes they deserve this in their golden years. People that have not worked till retirement ages should not get it. Only those that have not claimed welfare, disability and so on deserve this claim on their taxes. hell, why not just tax the hell out of their SS checks too while you’re at it. Maybe its time for government to slash their budgets, instead of trying to tax everyone to death.
July 18th, 2009 at 1:52 am
Retirement income are the only method of income to most of the seniors. And I really do think they need to be handled well. Some cases are really sad to hear.
July 19th, 2009 at 11:19 am
What exactly does tax preferences cost the working population? Today’s workers face a much larger federal payroll tax.I’m guessing that to support Social Security and Medicare than did previous generations,targeting tax breaks to senior citizens can exacerbate the inter generational transfer of wealth from workers to retirees, which will become more pronounced as the proportion of elderly Americans increases during the next three decades.
July 21st, 2009 at 10:19 am
retirenment income is something that people dont think much about,that is yonge people. They should start saving as early as possible
July 23rd, 2009 at 11:52 am
Most people think about charitable bequests as part of their will or trust to be consummated when they die. However, you will miss some senior tax breaks if you wait until death.If you attend to these charitable giving issues while alive, there are some big tax breaks available and a decent income for life.
July 29th, 2009 at 12:28 pm
Compared with last year the Senior Voters got a cost of living increase in their city pensions and Social Security, as mandated by law in good times and bad, no matter the effect on the people who pay taxes to fund these benefits. Of course the cost of the health insurance, which they don’t pay for, also went up. Some of that cost (particularly for Medicare) is paid for with borrowed money, likely reducing the benefits the Young Hopefuls will receive when they are old.
July 31st, 2009 at 1:48 pm
Don’t shop around with charities for the highest rate of return, though, because most large U.S. charities offer yields set annually by the American Council on Gift Annuities in Dallas. This benign collusion among charities, which began casually about 70 years ago, was finally legalized by Congress.
August 8th, 2009 at 11:23 am
why does “senior” always seem to mean “poor” I’m sorry to sound callous but you don’t need a 100% medical deduction on your taxes if you make $6600 a month when the rest of us are faced with pay cuts, pay freezes and continually rising medical costs. my guess is when this law was enacted, the health insurance industry didn’t have a strangle hold on health care costs in this country.
August 9th, 2009 at 3:51 am
Interesting indeed. Senior tax breaks have not actually been really helpful for the seniors. I say this because at times I hear many people talking about it and I personally do feel it is true in some cases.
August 9th, 2009 at 11:53 am
I think a good option is to annuitize your assets. Here again, the idea is that rather than leaving an inheritance, you get the money to enjoy during your lifetime by consuming principal. The risk in spending principal is that the principal could run out before you do. And that way no need to worry about being taxed
August 9th, 2009 at 6:09 pm
Certainly an interesting article. The idea of gift annuity is really a good idea i believe. The ideal thing for elders. Appreciate the article. Cheers
August 9th, 2009 at 9:12 pm
Its funny I work with tons of elderly as a CNA healthcare Professional, I really think a lot of them could use this information. I am glad I found this site.
August 11th, 2009 at 11:18 am
Well rather than deposit finds with a commercial insurance company, you deposit the funds with a charity and the charity provides a lifetime income. The amount may be less than the commercial annuity so check and compare. Additionally, you get a tax deduction that could shelter your income and reduce your tax bill for up to 6 years.
August 13th, 2009 at 9:16 am
Not many retirees need to diversify beyond these three major asset classes. If you’re diversifying properly, you would have the right dissimilarity of investment objectives and historical performances sufficient to offset market volatility.At some point, diversification becomes an exercise in absurdity, he said. But when using portfolio optimization strategy, some people may want and benefit from other asset classes such as gold, precious metals…
August 18th, 2009 at 12:06 am
This is great news! This idea gift annuity will really make life easier for our elderly, given the fact that most of them rely only on retirement income.
August 19th, 2009 at 7:01 am
Tax law requires people to begin taking money out of their IRAs, usually based on their previous year-end balances and life expectancy. But the recent market turmoil meant many savers faced oversized withdrawals on now-shriveled nest eggs. This temporary waiver allows IRA contributors and beneficiaries to forgo their 2009 distributions.
August 23rd, 2009 at 7:00 am
There are many ways to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, esp. in this market. It is in your best interest to find these alternative channels before you die. Isn’t the death tax at around 40-45% these days? Thank You
August 31st, 2009 at 2:16 am
Now with more awareness there are more retirees taking advantage of conversion of their funds prior to death and avoiding some of the tax that previously would have applied. However there are still those that don’t really understand and the more awareness there is the more benefit to all so anyone reading these articles should be passing the information on to their older family members and friends to make sure that the people who want to leave their assets to their family actually do so in a real value instead of loosing out with tax and charges etc. OK they are gone so it doesn’t matter but the benefit of the feeling of giving to their family is the point so the more they can give I am sure the more they feel the pleasure of the giving.
September 9th, 2009 at 8:49 am
Hmm…
That’s good idea..
We usually confused to get income from retirement…..
September 9th, 2009 at 9:18 am
Interesting topic to explore, Only those that have not claimed welfare, disability and so on deserve this claim on their taxes. hell, why not just tax the hell out of their SS checks too while you’re at it.
September 9th, 2009 at 9:43 am
Thank for this informtaion
” our donation does not need to be cash—you could donate appreciated securities or land that currently pays you nothing and also save on capital gains tax”
Really appreciate that
September 9th, 2009 at 10:05 am
uity and here’s how it works. You make a single contribution and based on the amount of that contribution, your age and current interest rates, you receive a set income for life. Think of this like making any other retirement income investment. You invest and get a lifetime income.
September 9th, 2009 at 10:49 pm
This is also my aunt’s main concern as she has acquired quite a lot of real estate properties. As for this charitable income investment, it’s a good way of having income even for retirees. At the same it serves good intentions.
September 10th, 2009 at 3:36 am
I didn’t know about a gift annuity until I just read your article. I can’t help but wonder how many other people out there know about it. In our present economic times, this information is a mighty powerful thing to know about
September 10th, 2009 at 8:51 am
Thats awesome! I didn’t know much about what really charities do, like you mentioned about giving your land which isn’t in use, will it also cover for some machines or cars you invest in them? Since not everyone has got a land which isn’t in use. And also those who’ve enjoyed a very very good professional career and now decided to retire and want to offer their services for the rest of their life to any charity, so will these gift annuities cover for them as well?
September 10th, 2009 at 5:57 pm
Increasing your retirement income is a top priority for people planning to retire and current retirees. Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning. It is critical that you do not wait until you retire to start making your financial plans. Instead, reassess your financial status during your pre-retirement years so that you can determine whether you need to defer retiring. Most importantly, talk to your financial planner, who will be able to determine your specific needs.
Thank you for this great post!
September 12th, 2009 at 2:25 am
If you attend to these charitable giving issues while alive, there are some big tax breaks available and a decent income for life.
September 13th, 2009 at 11:52 pm
Good article, I would have to agree. However a lot of people simply dont have the money anymore to diversify. Those that did got hit pretty bad when the economy took a turn for the worst. My grandparents for instance lost almost half of their retirement due to that crash.
September 14th, 2009 at 11:15 am
If you worry about leaving funds to your favorite charity, a goal you may have had for some time, you can use the option above in the form of a Charitable Gift Annuity. Rather than deposit finds with a commercial insurance company, you deposit the funds with a charity and the charity provides a lifetime income. The amount may be less than the commercial annuity so check and compare. Additionally, you get a tax deduction that could shelter your income and reduce your tax bill for up to 6 years.
September 16th, 2009 at 12:30 am
Property taxes are another thing that I feel should be capped at retirement. This seems to creep up every year as the house is worth more. Medical supplies should also be tax free for seniors!
September 16th, 2009 at 12:32 am
This is just wrong. People that have worked their whole lives, paid and paid taxes they deserve this in their golden years. People that have not worked till retirement ages should not get it. Only those that have not claimed welfare, disability and so on deserve this claim on their taxes. hell, why not just tax the hell out of their SS checks too while you’re at it. Maybe its time for government to slash their budgets, instead of trying to tax everyone to death.
September 18th, 2009 at 7:23 am
I haven’t heard this gift annuity before thanks for the info, Is this new or it’s already existing for years? I’ll tell to my mother and father then, a great opportunity for them. Thanks for the post.
September 19th, 2009 at 11:10 pm
Thanks for the explanation. I love the gift anuity idea. Subscribing your blog.
September 20th, 2009 at 9:56 am
Certainly an interesting article. The idea of gift annuity is really a good idea i believe.
Thank 4 share
September 20th, 2009 at 11:39 pm
I often envy with some facilities in europe and u.s.. Like this one tax break for senior. I’m from indonesia. My father has retired since 2001. And tax break that he get is only tax for land & building. Even to get it he must proactive to administer the tax break
September 26th, 2009 at 4:17 am
So what is everyones opinion about the current state of pensions due to the economic situation? My pension has dropped significantly probably robbing me of 1000s of dollars. Assuming the rates do not recover sufficiently in the next year I feel I could be working until I’m 80 at this rate so I’ll be needing some good walking socks to keep my old feet warm.
September 27th, 2009 at 1:59 am
“Now with more awareness there are more retirees taking advantage of conversion of their funds prior to death and avoiding some of the tax that previously would have applied.”,
well, this comment seems to appropriate with the topic.
September 28th, 2009 at 8:29 am
I think the answer is simple: For folks who have accumulated more in qualified retirement plans than they need for income. And those who are forced into taking RMDs at a heavy loss from 401(k)s in the market.
September 28th, 2009 at 12:44 pm
Does this work for self employed people? Too bad there’s not much benefit for self employed people. The biggest benefit for self employed people I guess is the tax break you get over employees.
September 30th, 2009 at 11:10 am
I didn’t know about a gift annuity until I just read your article. I can’t help but wonder how many other people out there know about it. In our present economic times, this information is a mighty powerful thing to know about. thanks for your information friend.
September 30th, 2009 at 11:32 am
Such a great info! This would certainly help promote giving to charities, but also charities would benefit by being 100% transparent where their money goes. Even better, you could donate your money to a specific person/cause within the charity (some charities do this, it would be good if a lot more charities did this). People are (sometimes quite rightly) cynical about how charities spend their money.
September 30th, 2009 at 1:50 pm
Really felt good to read the opportunity being offered to the senior citizens at their retirement. This is really a very noble cause to help them when they are not as capable to earn. And giving them such a gift at this age is surely a very good idea.
October 1st, 2009 at 1:57 am
I can’t belive how much the payout actually reduces per age. But whats interesting is I did not even know that such a things as a charitable gift annuity even existed. But it sounds like the perfect way to make a decent investment and still be helping people at the same time.
October 1st, 2009 at 6:25 am
Good article, I would have to agree. However a lot of people simply dont have the money anymore to diversify. Those that did got hit pretty bad when the economy took a turn for the worst. My grandparents for instance lost almost half of their retirement due to that crash. fisika gerak lurus
October 2nd, 2009 at 7:41 am
Very interesting article. I have no choice but to agree to this one. Senior citizens that have worked their whole lives and paid taxes, they deserve this to enjoy what they’ve done
October 4th, 2009 at 8:13 am
what a interesting topic. i first knew about gift annuity @ @’
October 4th, 2009 at 9:18 am
Retirement tax breaks like these are absolutely amazing. I always advise my clients to proceed with a charitable gift annuity. It is a great way to invest that most people dont know much about.
October 5th, 2009 at 9:37 am
Great post! there are many ways to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, esp. in this market.
thank for share
October 11th, 2009 at 7:38 am
This was a very informative blog post. I have many elderly and retired people in my family and I encourage them all the time to plan ahead and at least be informed about these type of investments and tax breaks. It could be extremely helpful when put into a bad situation such as a declining economy. Thank you.
October 11th, 2009 at 3:42 pm
I didn’t know about a gift annuity until I read your article. Very interesting, thanks for this post.
October 13th, 2009 at 1:13 am
Nice articles
great ideas, If anyone wants to give to charity i think this is the best way to to it.
October 13th, 2009 at 7:10 am
wow. great, The idea of gift annuity is really a good idea i believe.
October 15th, 2009 at 1:08 am
For me charitable gift annuity is a pretty good idea. Doing a donate and get a gift. I’m sure many people agree with me! Good share.
October 16th, 2009 at 2:47 am
totally agree in concept.. The idea of gift annuity is brilliant.. but need to explore the details of implementation forward.. regarding the complicated rules.. overall, it’s interesting.. tks
October 16th, 2009 at 4:36 pm
I often envy with some facilities in europe and u.s.. Like this one tax break for senior. I’m from indonesia. My father has retired since 2001. And tax break that he get is only tax for land & building. Even to get it he must proactive to administer the tax break
October 20th, 2009 at 12:00 am
Retirement benefits are vital for the retiree for they are not able to work for their self. Thanks for this informative post internet t1 helps for the faster dissemination of this information.
October 22nd, 2009 at 6:53 pm
What a great opportunity to share more of your wealth with a favorite cause while retaining financial confidence in this global recession. Good we found pout this, lot of our employee in transfer smart are approaching retirement stage, thanks for all your concern.
October 22nd, 2009 at 11:42 pm
Great tips and I know about this
“A gift annuity’s yield varies according to your age and the date you make your gift”
Thanks
October 26th, 2009 at 5:44 am
Sounds like a good plan. My parents have just gone into retirement. It is not what it used to be. Much harder to make ends meet these days for everyone.
October 28th, 2009 at 1:26 am
Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning. It is critical that you do not wait until you retire to start making your financial plans.
October 30th, 2009 at 2:43 am
I believe if this senior tax break also applied in other country such as Indonesia with transparant regulations, that life won’t be so difficult for senior.
October 31st, 2009 at 3:51 am
I think Tax law requires people to begin taking money out of their IRAs, usually based on their previous year-end balances and life expectancy. But the recent market turmoil meant many savers faced oversized withdrawals on now-shriveled nest eggs.
October 31st, 2009 at 11:37 pm
You have no clue regarding senior citizens who have worked all their life with the hopes of retiring with a reasonable income supplemented with some Social Security to which they have contributed all their working lives. I suppose Ms. Vestal prefer that we take from those who earned it by paying into it with every paycheck, and give to illegals and those who get government checks for welfare, but have not earned that right. It is simply disgusting how easily we have thrown away our feelings for American Seniors, of which we all will someday be, and transferred those feelings to illegals who sneak into our country and are awarded free medical care, free education and given the golden key to OUR country.
October 31st, 2009 at 11:40 pm
I think that the 4% rule along with a balanced asset allocation plan still works MOST of the time for retirement assets. This sideways pyramid thing does not make any sense at all to me. Maybe im not reading it correctly, but if you tap only income funds in the early years of retirement and thus end up with an equity -only protfolio in the later years as this strategy suggests, that makes the portfolio MORE risky, not less. I’m sticking with my asset allocation plan 60% equity/40% bonds cna short term cash, adjusting it periodically as needed. Im not market timing, I just maintain that allocation, give or take a few % points either way, and i try not to worry about it either. this personal finance stuff interests me, but so do so many other things that are WAY more fun, so im also mindful of my personal time “asset allocation” as well
November 4th, 2009 at 2:15 am
This is a great article. The idea of gift annuity is really a good idea i believe.
Thank a lot
November 6th, 2009 at 6:06 am
If only we know which charities with good track record, so senior will not make contribution in vain.
November 6th, 2009 at 2:30 pm
This is just wrong. People that have worked their whole lives, paid and paid taxes they deserve this in their golden years. People that have not worked till retirement ages should not get it. Only those that have not claimed welfare, disability and so on deserve this claim on their taxes. hell, why not just tax the hell out of their SS checks too while you’re at it. Maybe its time for government to slash their budgets, instead of trying to tax everyone to death.
November 9th, 2009 at 4:59 am
I like this idea also, I wonder what senior tax break will do in the world of finance.
very nice articles
November 10th, 2009 at 7:30 am
this is really a good article. Gift annuity is really a good idea it seems.
November 15th, 2009 at 1:14 am
I suppose Ms. Vestal prefer that we take from those who earned it by paying into it with every paycheck, and give to illegals and those who get government checks for welfare, but have not earned that right.
November 15th, 2009 at 11:46 pm
If anyone wants to give to charity i think this is the best way to to it.
Good post
November 17th, 2009 at 6:42 am
People that have worked their whole lives, paid and paid taxes they deserve this in their golden years. People that have not worked till retirement ages should not get it. Only those that have not claimed welfare, disability and so on deserve this claim on their taxes.
November 17th, 2009 at 7:33 pm
Great, I like your post. this good idea.
…You could donate appreciated securities or land…
November 23rd, 2009 at 3:35 am
hey nice on post I like this idea For me charitable gift annuity is a pretty good idea. Doing a donate and get a gift
November 25th, 2009 at 12:42 pm
This article introduced an interesting principle of giving to charity and hereby claiming on taxes. However, my family donated quite a lot to charity even without any other benefits. We how have can give those who don’t have enough. To whom we give is our personal decision. Last but not least US laws and regulations differ quite a lot that’s why would be interesting if someone from EU region could share his/shes experience with senior tax break.
November 30th, 2009 at 5:08 pm
I think, invest and get a lifetime income is good. but that is to old age for some body, but it’s ok thanks for your knowledge that you give to me ..
December 10th, 2009 at 3:56 pm
Charitable gift annuities certainly are a good way to increase income as a retiree. The tax benefit is a bonus.
December 10th, 2009 at 10:41 pm
Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning.
December 17th, 2009 at 6:08 am
its a really very good topic for people who are about to retire or will be. future financial planning is a need of life if you wish to live with tension free after your retirement.
December 17th, 2009 at 11:13 am
good idea about retirement.
December 18th, 2009 at 1:22 am
very nice information on retirement. i will refer this post to all my coleagues to read it.
December 18th, 2009 at 1:44 am
retire young retire rich, I have read that books
December 18th, 2009 at 6:05 am
to live happy after retirement everybody should plan for financial planning. the article is really well described and must read by the people who are a bit confused wht to do and how to plan for retirement income.
December 18th, 2009 at 6:35 am
I guess the EPF funding you get when your over 55 would be sufficient if you already have a job at that time. However in certain countries they do not really take time value for money and its rather unfair as many people would lose out on so much! there should be more developments extended when it comes to retirement income..
December 22nd, 2009 at 11:57 am
Great, I like your post. this good idea.
…You could donate appreciated securities or land…
December 22nd, 2009 at 5:52 pm
This is the first time I’m getting to know about “charitable gift annuity.” I’ve read the post and it was very informative. Specially the table made me understand everything. Thanks for sharing the information.
December 23rd, 2009 at 11:40 am
Great post! there are many ways to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, esp. in this market.
Thanks a lot for sare..
December 25th, 2009 at 2:53 am
Love the post. Senior Tax break needs to available in all countries in my honest opinion.
December 28th, 2009 at 12:18 am
Retirement tax breaks like these are absolutely amazing. I always advise my clients to proceed with a charitable gift annuity.
December 28th, 2009 at 11:05 pm
For folks who have accumulated more in qualified retirement plans than they need for income. I think that’s how it should go.
December 30th, 2009 at 5:47 am
planning for retirement days is really a good thinking and everyone should think about it. i must say consult with a retirement planner who can well guide you on it.
December 31st, 2009 at 10:48 am
Increasing your retirement income is a top priority for people planning to retire and current retirees. Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning
January 1st, 2010 at 3:13 am
The EPF funding you get when your over 55 would be sufficient if you already have a job at that time. However in certain countries they do not really take time value for money and its rather unfair as many people would lose out on so much! there should be more developments extended when it comes to retirement income..
January 7th, 2010 at 10:49 am
There are many ways to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, esp. in this market. It is in your best interest to find these alternative channels before you die. Isn’t the death tax at around 40-45% these days? Thank You
January 10th, 2010 at 10:35 pm
nice idea mate
i like idea of gift annuity ,maybe next couple year i will implied in my life
thanks
January 11th, 2010 at 4:32 am
nice post this make many ways to reduce burden of taxes and to start making your financial plans.
January 11th, 2010 at 8:33 am
Great article. The idea of gift annuity is brilliant. My parents would be very interested in this. Thank you for sharing this information with us.
January 11th, 2010 at 8:49 am
Certainly an interesting article. The idea of gift annuity is really a good idea i believe.
Thank for sharing
January 12th, 2010 at 12:55 pm
wow..
this is really a good article.
The idea of gift annuity is really a good idea i believe.
January 13th, 2010 at 11:21 pm
Thank you for sharing information about Retirement Income for Life with a Senior Tax Break. This info is very helpful for me.
January 16th, 2010 at 12:44 am
never thought about retirement yet…it’s time to smart and hard work for me, a young entreprenuer
January 19th, 2010 at 1:15 am
There are certainly a lot of details like that to take into consideration. That’s a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. Retirement income should be invested and consumed with a lot of care and in risk free areas.
January 23rd, 2010 at 4:55 am
hi…This article introduced an interesting principle of giving to charity and hereby claiming on taxes. Gift annuity is really a good idea it seems. i like
January 24th, 2010 at 1:44 am
I think the answer is simple: For folks who have accumulated more in qualified retirement plans than they need for income.
February 2nd, 2010 at 11:16 pm
Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning. The article, sure is helpful. Thanks.
February 5th, 2010 at 12:30 pm
I think the smartest charitable donation has to be land. Some retirees are not comfortable with giving money because it is a tangible asset they can place worth on. ie. ” I have $300,000 to live on for my retirement, that is enough”
Where as land can appreciate in value and that will be taken into consideration when the gift is given.. Gift annuities are definitely becoming more popular these days. I remember when my grandfather died in the 1980’s, these kinds of retirement options were not discussed.
February 11th, 2010 at 4:06 am
In my honest opinion, only a public employee would argue that this is good policy while at the same time forcing everyone else to pay their fair share and then some. No one else but public employees enjoy this tax scam.
February 14th, 2010 at 11:14 pm
For folks who have accumulated more in qualified retirement plans than they need for income. And those who are forced into taking RMDs at a heavy loss from 401(k)s in the market.
February 15th, 2010 at 1:51 am
People that have not worked till retirement ages should not get it.
February 18th, 2010 at 10:57 pm
Very interesting investing method for retired people. In the end of the day your money will be safe at least. Thanks a lot for sharing this article.
February 26th, 2010 at 6:40 am
Rather than deposit finds with a commercial insurance company, you deposit the funds with a charity and the charity provides a lifetime income. The amount may be less than the commercial annuity so check and compare.
March 2nd, 2010 at 2:38 am
there are people who regularly donate to charities because they have the income to live off and have enough left over a month/year to donate to charities. People who do give regularly top charities should get the charitable gift annuity as they would give a lot of their income to charitable organisation. If someone who was coming to the end of their lift gave a huge charitable donation I think should also get the charitable gift annuity as they are still giving quite a substantial; amount of money to charity and will get benefits when he/she dies and it’s their children that will get a tax break.
March 5th, 2010 at 5:21 am
It is definetely a must to start thinking about retirment. Too many people are leaving it in the hope the government will sort it out for them. Unfortunely all givernments in the world are facing a population boom.
March 5th, 2010 at 10:42 pm
have many elderly and retired people in my family and I encourage them all the time to plan ahead and at least be informed about these type of investments and tax breaks. It could be extremely helpful when put into a bad situation such as a declining economy.
March 8th, 2010 at 9:44 am
I like the idea, Gift annuity is a good way forward.
March 10th, 2010 at 7:24 pm
I think this method is only good for super rich retiries. Most people would just leave their assets to their children and grandchildren. I never understood why would someone want to buy annuity. Just buy a stock index or bond index and live from what you have. Annuities give you that extra assurance but you pay for that.
Annuity rates are carefully calculated to make money for the provider.
Peter
March 12th, 2010 at 9:49 pm
Like other aspects of financial planning, managing the income you will receive during your retirement years requires careful planning.
March 13th, 2010 at 5:47 am
Property taxes are another thing that I feel should be capped at retirement - you should be able to thoroughly enjoy the latter stages in life. Extra money to travel and do the stuff you couldn’t do while working - the government should reward ex. pensioners!
March 13th, 2010 at 9:47 am
Very interesting method especially for the retired person to save some tax.
March 17th, 2010 at 1:50 pm
Property taxes should be removed at retirement aged, along with cheaper medical supplies. It’s an outrage that seniors have to use large portions of their hard earned pensions for medicin probably brought uppon them by hard labour over several years!
March 25th, 2010 at 1:28 am
Very interesting investing method for retired people. In the end of the day your money will be safe at least. Thanks a lot for sharing this article.
March 28th, 2010 at 4:14 am
nice topic raised. so we must prepare our senior years later. thanks for the information.
March 29th, 2010 at 6:53 pm
Great idea. now I can really start planning on my retirement. Thanks a lot for the information. Cheers
March 31st, 2010 at 1:43 am
Very interesting article. I have no choice but to agree to this one. Senior citizens that have worked their whole lives and paid taxes, they deserve this to enjoy what they’ve done
April 2nd, 2010 at 12:13 am
Charities and donations are to performed irrespective of tax saving. It is more humanitarian than a few amount of savings. However the details mentioned here are certainly motivating for those who intend to spend something on charity.
April 29th, 2010 at 2:37 am
Tax law requires people to begin taking money out of their IRAs, usually based on their previous year-end balances and life expectancy. But the recent market turmoil meant many savers faced oversized withdrawals on now-shriveled nest eggs.
May 7th, 2010 at 1:12 am
have no choice but to agree to this one. Senior citizens that have worked their whole lives and paid taxes, they deserve this to enjoy what they’ve done
May 20th, 2010 at 4:08 am
I receive a retirement annuity from my service in the federal government and would like possibly to move to a state which does not tax the annuity income.
May 24th, 2010 at 11:22 pm
Definitely a great useful post. The concept of gift annuity is actually a great idea i think. The perfect option for elders. Truly appreciate your post. Best wishes
May 30th, 2010 at 3:00 pm
I hadn’t heard of this before but i’m really glad I found your post! I’m a way off retirement yet and who knows what governments will change in the future but it sounds like a great way to give to charity and yet not be completely out of pocket.
June 1st, 2010 at 11:04 pm
I am totally agree with you. there are a lot of methods to reduce burden of taxes. I wasn’t aware of this type of retirement investment. Great way to plan ahead, especially in this market.
June 2nd, 2010 at 8:15 am
Rather than deposit finds with a commercial insurance company, you deposit the funds with a charity and the charity provides a lifetime income. The amount may be less than the commercial annuity so check and compare.
June 12th, 2010 at 10:39 am
One good way to increase your retirement income is liquidate any real estate notes you may be carrying and invest in tax lien certificates. Many states have high interest guaranteed payouts that many are taking advantage of.
Sell Your Real Estate Note
June 13th, 2010 at 4:22 pm
Planning for retirement is soooo hard.
Thank you for taking the edge off of it!
Don’t Wait- Sell Your Real Estate Note!
June 24th, 2010 at 11:35 am
The information you posted about Senior Tax Break is so useful, I am expecting for your next post.
June 30th, 2010 at 8:54 am
Rather than deposit finds with a commercial insurance company, you deposit the funds with a charity and the charity provides a lifetime income. The amount may be less than the commercial annuity so check and compare.
July 2nd, 2010 at 11:14 am
To be honest, I never understand what will people do with a lot of money after they die?? Seriously..I have seen people who grow richer and richer every year yet they save miserly….I don’t know the reason for this….and I think I will never get it…
July 2nd, 2010 at 1:01 pm
Topic Incredible certainly facilitate my life, and planning my retirement, Thanks for sharing
July 7th, 2010 at 9:26 pm
So this is good for senior citizens just like my grandma.
July 11th, 2010 at 9:19 pm
Great information, thanks for sharing with us. I am sure more people will benefit this article for their retirement plans.
July 13th, 2010 at 8:13 pm
Its great article there are so many things to know. In my openion I will work hard when I’m young and try to make my self useful for the community and it will pay off. when I’m old there should be plenty of many for me. Also it is a good way to ern cash but you must know that helping other who are less fortunit is a gift of life. there are so many people who cannot save and make money when they are young due many reason including family issues, helth issues and more… they will be happy to read this article. god posting keep on writing.
July 13th, 2010 at 8:52 pm
The sooner one starts thinking about retirement, the better for them it will be. I’ve learned to see that years pass quickly, and you need to prepare well in advance.
July 18th, 2010 at 8:32 pm
So this is good for senior citizens just like my grandma.
July 19th, 2010 at 7:53 am
Great article! It makes a lot of sense. With the economy as it is at the moment, many charitable retirees may be feeling the squeeze on fiannces - this is a great way to overcome that.
July 20th, 2010 at 7:34 am
Surely we will not pay retirees as much as we worked. We must have a lot of savings for old age will we be apart from that we also have to pay tax.
July 20th, 2010 at 8:22 am
Very interesting investing method for retired people. In the end of the day your money will be safe al least.
July 21st, 2010 at 2:28 am
It is very important to plan retirement income in today’s world, where you cannot really say how much is enough for you to live a peaceful retirement life. I think one should plan for his retirement after he gets a job. Every day is important.
July 21st, 2010 at 1:05 pm
donation does not need to be cash—you could donate appreciated securities or land that currently pays you nothing and also save on capital gains tax.
July 21st, 2010 at 11:42 pm
Great article! It makes a lot of sense. God posting keep on writing. Its great article there are so many things to know. I think this method is only good for super rich retires. Very interesting investing method for retired people.
July 21st, 2010 at 11:47 pm
Surely we will not pay retirees as much as we worked.
July 21st, 2010 at 11:49 pm
think one should plan for his retirement after he gets a job. Every day is important.
July 22nd, 2010 at 7:50 pm
Planning for retirement is soooo hard. thank you for solutions
July 23rd, 2010 at 6:22 pm
Planing for retirement is something that many are faced and in my opinion it is very important to cut down as much as possible on expenses associated with housing. Having a pay off house or apartment will greatly reduce the stress associated with retirement.
July 24th, 2010 at 10:03 am
An intelligent thinking, about income in retirement period. I got to thinking again about this.
July 25th, 2010 at 6:10 am
I receive a retirement annuity from my service in the federal government
July 25th, 2010 at 6:16 am
The idea of not giving up a part of your hard earned retirement fundm in the form of taxes is fantastic.
July 26th, 2010 at 1:57 pm
If you fail to plan…Plan to fail. Most people don’t make any retirement plans and end up part of the 95% of the country retirees that don’t have more than $1000 cash!
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July 27th, 2010 at 2:46 am
This part of our life as a human is very sad. We need to think of retirement. As if there isn’t much to think about. now we need to secure our life…. but great article was good to read it.
July 29th, 2010 at 5:34 pm
Good article. Didn’t know charitable gift annuity exist. Thanks for making it clear.
July 30th, 2010 at 5:18 am
My best friend was always talking about a smart retirement investing. After his morality I was pondering about retirement more seriously then before. I signed up for your newsletter and now I get a very informative articles. Thanks so much!
July 30th, 2010 at 11:07 am
Retirement should be the life you deserve, a holiday after a lifetimes work
July 31st, 2010 at 11:48 am
This was a very informative blog post. I have many elderly and retired people in my family and I encourage them all the time to plan ahead and at least be informed about these type of investments and tax breaks. It could be extremely helpful when put into a bad situation such as a declining economy. Thank you.
July 31st, 2010 at 11:27 pm
Planning for retirement means starting early, many parents or grandparents can start a pension for their children and give them help from an early age.
August 1st, 2010 at 11:00 am
How to face federal law issues in any bad case of retirement bonus? How much I can get benefits from government about this issue? Thanks for this post.
August 2nd, 2010 at 3:40 am
Love the information on this page. I seriously had no idea that such a thing as charity tax deduction existed. I’ve donated to several projects in the past and although there was no intention at my side to see some of that money back, it’s still a very interesting idea. I run a small business and times can be tough. I could use every penny!
August 3rd, 2010 at 9:00 pm
I never want to retire. That would be the beginning of the end.
August 6th, 2010 at 10:28 am
The money you receive from a senior settlement could be that financial cushion you need to feel secure about retiring in these very uncertain times. Retirement should be a time to relax and enjoy the remaining years you have in life, not a time when you are stressed out about paying bills and surviving on less than you need to be comfortable. If you have a life insurance policy, then give some serious thought to senior settlements because they just may be the solution you have been looking for in order to give you that added cushion that will make your remaining days far more enjoyable.
August 6th, 2010 at 3:24 pm
WOW Great.. Very interesting investing method for retired people. In the end of the day your money will be safe al least.
August 11th, 2010 at 7:54 am
I’ve never heard of a charitable gift annuity but it does sound like a very interesting way of investing for retirement. I didn’t know that charities offered this but it seems that they are keen to give back. I wonder, if more people knew about this, if more people would support charities throughout their lifetime.
August 13th, 2010 at 7:59 am
If you are going to go in and out of funds, you are more likely to lose based on the fees and poor timing. Case in point, the magellan fund in the 80s. Holds the record for best growth over a 10 year period, averaged 33.33% growth a year, and 80 percent of the people investing in that fund LOST money because they were trying to time it. Good luck with that!
August 16th, 2010 at 11:23 am
The money you receive from a senior settlement could be that financial cushion you need to feel secure about retiring in these very uncertain times. Retirement should be a time to relax and enjoy the remaining
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August 25th, 2010 at 9:48 pm
Retirement should be a time to relax and enjoy the remaining years you have in life, not a time when you are stressed out about paying bills and surviving on less than you need to be comfortable. Of course the cost of the health insurance, which they don’t pay for, also went up.