Whether you are retired or among the 13.8 million people expected to retire over the next ten years you are probably facing one longstanding concern: how to convert savings and other assets into enough income to cover lifetime expenses. According to The New York Times, this concern is even greater for baby boomers, who often lack company pensions and must address increasing health care costs, longer life expectancy, and unrealistic expectations about investment returns. (The New York Times, “Investing; For Boomers Near Retirement, Toolboxes Aplenty,” January 4, 2004).
The New York Times reports that investment companies are pushing fixed annuities -- which yield anywhere from 3.5 percent to 5.75 percent -- as an excellent option to help people draw income from their savings. If you think that a fixed annuity may be right for you, why not consider a charitable gift annuity?
A charitable gift annuity is an arrangement between you and the Jewish Community Foundation of MetroWest NJ. You contribute cash or securities to the Foundation and, in return, you receive a fixed income for your life. The rates of return are very attractive, reaching a maximum of 11.3 percent. Since the gift is irrevocable, you also receive a charitable deduction for the gift portion of the annuity. The income is guaranteed and is paid quarterly. Moreover, a portion of the annuity is a tax-free return of principal. Your rate of return depends on your age and the number of persons receiving the annuity.
The Jewish community in MetroWest NJ will benefit because your gift will allow us to plan for the future. The part of your gift that is not used to provide life income for you will be available to United Jewish Communities of MetroWest NJ, or other organizations you designate, to meet the needs of our community.
For a free and confidential consultation, contact the Jewish Community Foundation of MetroWest NJ at 973/929-3060 or .
And most importantly, you will receive the personal satisfaction of knowing that your gift will continue to support the quality of Jewish life in our community.
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Example of rates based on a single life* |
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$50,000 Gift (minimum gift is $10,000) |
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Age |
Rate of Return |
Annual Income |
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65 |
6.00% |
$3,000 |
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70 |
6.50% |
$3,250 |
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75 |
7.10% |
$3,550 |
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80 |
8.00% |
$4,000 |
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85 |
9.50% |
$4,750 |
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90+ |
11.30% |
$5,650 |
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*Joint & survivors rates are also available. |
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Jewish Community Foundation
Summary of Benefits
• A guaranteed fixed income for life that is partially tax free
• A high rate of return (see Sample Rates)
• An immediate charitable income tax deduction in the year of the gift (with a five-year carryover)
• Deferred capital gains on appreciated property.
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