Valerie Green is a retired high school English teacher. She has been a careful saver and has a number of certificates of deposit.
Valerie: Over the past three years, the return on my CDs has declined significantly. I have looked carefully, but there just are not any CDs with a good rate of return.
I am also interested in a secure return. I want to know that a good return will be paid. The ideal choice for me would be a secure high return.
Valerie talked to a friend who had found exactly that choice. Her friend had set up a gift annuity with a favorite charity. Valerie thought that perhaps the gift annuity would be helpful for her.
Many years ago, Clara Lehman bought a home. Since she was very pleased with the home, she decided to buy stock in the company that built and sold her home. Over the years, the stock has increased in value many times.
Clara: This stock was a good investment. I have enjoyed my home and I thought if I like my home, other people would like theirs. Because I was a happy homeowner, I purchased the shares of stock in this homebuilder.
While the stock has gone up in value several times, I am now tired of guessing the market. In the last few years, the stock has gone up and down in value. I think it would be much better to have a good fixed return and not worry about the stock markets.
Clara called Point Loma and discovered that she could receive return of almost 8%, based upon her age. This fixed payment was in addition to a large income tax deduction. Clara decided to transfer $10,000 of appreciated stock to Point Loma.
Retirement Annuity
With a deferred payment gift annuity, the annuitant(s) start(s) receiving payments on a future date (e.g., retirement) monthly, quarterly or annually. It is possible to design a deferred payment gift annuity with a flexible starting date. The longer the annuitant waits to start payments, the larger they will be. For information, contact us. For larger amounts or for using assets such as real estate, consider the Retirement Unitrust.
College Annuity
Payments may also be set to help a child or grandchild go to college.
John and Mary Borden would like to begin planning now for their grandson, Jimmy, to meet the rising costs of college. An annuity would normally provide lifetime income for Jimmy. By electing the College Annuity Option prior to the first payment date, he would instead receive the income in four or five annual payments to use at his discretion.
While this may be done for a child of any age, the younger the child the better the opportunity for compound interest benefits. For information, contact us. For larger amounts or for using assets such as real estate, consider the Education Unitrust
A gift annuity is a contract under which Point Loma Nazarene University, in return for a transfer of cash or other property, agrees to pay a fixed sum of money for a period measured by one or two lives. They may provide immediate income or deferred payment for your own benefit (e.g., for retirement) or for the benefit of someone else – a sibling or a parent, for instance.
A major advantage of a gift annuity, whether immediate or deferred, is the payments are fixed from the outset. They are not market driven and do not change whatever happens to interest rates. On the other hand, twenty years from now a fixed annuity payment may have less purchasing power than it does today.