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You Will Be Entitled To:
- Lifelong payments with an
attractive return rate for one or two people.
- Partially tax-free income,
since part of your stream of payments is treated as return of
principal (a cash gift maximizes tax-free return).
- An income-tax deduction.
- Elimination of capital gain
on transfer of appreciated securities.
- Immediate or Deferred
Payments. You may select your quarterly payments to begin immediately
or you may choose to defer the payments until a later retirement or
more convenient future date. A deferred gift annuity is an excellent
means of supplementing retirement income. It also provides an
immediate tax benefit while increasing retirement income on a tax
favored basis.
Use
of Securities Is a Smart Move
Using appreciated securities for a charitable gift annuity can provide
additional tax benefits. Since a portion of your gift is for charitable
purposes, you will receive a tax benefit on that portion of the gift. In
addition, any remaining capital gain will be reported in prorated amounts
over your life expectancy. If you give a low-yielding asset, you may be
able to increase your income, since a gift annuity may pay more and be
taxed more favorable than other income.
A
Creative Use of CDs
If you have a certificate of deposit that is nearing maturity, you may
want to consider converting the funds into an Al Sigl Center Charitable
Gift Annuity.
This
conversion is a simple transaction and can significantly enhance your
financial situation. For example, if you have a $5,000 CD that is about to
mature and that could be used to purchase a new 3% CD, you could instead
use the $5,000 to create a gift annuity. This will result in increased
spendable cash, the creation of an income-tax charitable deduction,
partially tax-free income, and the satisfaction of knowing that you have
assisted a worthy cause.
The
Income You Will Receive
The rate of return for the Al Sigl Center Charitable Gift Annuity is based
on the age of the person or persons who receive the payments. The older
the beneficiary, the higher the rate of return (payments). We will be
happy to furnish payout rates for one or two lives for either an immediate
or deferred annuity on request.
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Example:
Single Gift Annuity: $10,000 cash gift;
28% income tax bracket is assumed.
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| Age** |
Contribution* |
Income Tax
Deduction |
Annuity Rate*** |
Annual Income |
Tax Free Portion |
Equivalent
Return |
| 60 |
$10,000 |
$2,269 |
5.7% |
$570 |
$321 |
8.5% |
| 65 |
$10,000 |
$2,869 |
6.0% |
$600 |
$358 |
9.3% |
| 70 |
$10,000 |
$3,401 |
6.5% |
$650 |
$415 |
10.5% |
| 75 |
$10,000 |
$4,006 |
7.1% |
$710 |
$484 |
12.0% |
*
Minimum Gift of $5,000.
** Minimum Age of 45 for deferred and 55 for immediate
payments. Minimum ages for participants may be affected by market
circumstances.
*** Future Annuity rates are subject to change; however, after
participation, rates are secured for life. |
Find Out More
For a confidential illustration about how this program could work for you,
please contact Karen Gaffney at (585) 442-4100, ext. 8980.
Mention that you wish to designate Medical Motor Service as the
beneficiary.
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