Investment Strategies with Aileron

By: Bill and Cindi Porter, AILERON INVESTMENT ADVISORS

One possibility is a charitable gift annuity. It may help provide benefits for you and for a charity of your choice, a possible win-win.

If you still need income during retirement but are willing to leave some or all your remaining assets at death to a charity, there are some lifetime benefits you can receive now.

For example, let’s suppose either the Red Cross, the Humane Society, or your alma mater are organizations you would like to help but you still need the income from your assets to live every month. Using a gift annuity, you could gift some assets to the charity and receive a partial tax deduction now yet continue to still receive the income from those assets for the rest of your life (and your spouse’s life if married). After you (and your spouse) have passed, the remaining assets would then be retained by the charity.

You would retain your income, get a new tax-deduction, and your charity would eventually receive your donation. There are some real benefits. However, there are also a few potential drawbacks. The arrangement is irrevocable and cannot be changed in the future. Your payments would be taxable. Investing in an annuity that was not a gift annuity might pay a higher income. The payments are fixed and not adjusted for inflation. Like all things on planet earth, nothing is perfect.

However, many people have used gift annuities to improve their own financial situation while also setting up a future charitable donation. That combination of giving while receiving has made many investors feel better about their portfolio as well as themselves.

A conversation with your trusted advisor can help you decide if adding a charitable dimension to your portfolio would be a good option for you.

Source: https://www.fidelitycharitable.org/guidance/philanthropy/charitable-gift-annuity.html 

This is for education only. Before using this information in any way discuss it with a financial professional. There are many risks associated with stock trading. You may lose some or all of your financial investment. Securities offered through Dempsey Lord Smith, LLC Member FINRA/SIPC. Securities offered through Integrated Financial Planning Member FINRA/SIPC. Advisory services offered through Dempsey Lord Smith, LLC. All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.

Send your investment questions to: [email protected].

All the information in this letter is published in good faith and for general information purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information is strictly at your own risk.


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