Gift Annuities: An attractive option for retirement income
With all of the ups and downs in the financial markets, some Alverno alumnae and friends are turning to Alverno College’s gift annuity program to create a steady, dependable stream of lifetime income. They like knowing that every quarter they can depend on receiving the same amount, year in and year out.
They like the other benefits, too, such as a good payment rate (up to 12 percent, depending upon one's age) and income that is partially tax-free. They like the income tax charitable deduction they receive and, of course, that they are helping Alverno College.
You may want to consider these seven benefits of a gift annuity as you reassess your financial plan:
- Attractive rates of return. When you compare the gift annuity rates with what you might receive from a certificate of deposit, you will likely be pleasantly surprised.
- Regular payments. When you establish a gift annuity, you will receive your check or direct deposits every quarter. Receiving a regular payment on a specific predetermined rate is comforting and helpful for planning and budgeting purposes.
- Fixed income. Your payment rate is locked in at the time you obtain a gift annuity. It does not rise or fall with interest rates and the economy. Instead, it will be the same amount every year — and that can mean a lot in uncertain times.
- Lifetime benefit. Gift annuities are for life. No matter what your age as an annuitant or how long you live, your payments will continue. And if you have a two-life gift annuity, when one person dies, the other can continue to receive the same amount for the rest of his or her life. This benefit of ongoing payments can provide security for each spouse as they age.
- Dependable source. Alverno College stands behind all of our gift annuities. We have a reserve fund set aside to meet our obligations and we back up our annuity obligations with the full financial assets of the College. We want you to feel safe and secure and to have confidence that your payments will continue without fail.
- Relief from taxes. Since the IRS considers part of your contribution for a gift annuity a charitable gift, you will receive an income tax charitable deduction if you complete an itemized tax return. Also, you will be able to claim part of the annuity payment as tax-free income.
- Simple set up process. Obtaining a gift annuity from Alverno College is much easier than other financial transactions. We provide you with a customized illustration using your age, your spouse’s age (if appropriate) and the amount of your contribution. You then have this detailed illustration to share with your family and financial advisors.