Just as missionaries must adapt to new cultures, retirees face the challenge of adapting financially. With an ever-changing economy, the retirement years require prior planning in order to provide for future income needs. The average retiree has adequate income at the normal retirement age of sixty-five. Pension plans and social security usually provide most of what is needed. If there are also IRAs or other tax-deferred plans, additional income can be provided as well. These types of income are usually fixed, with little adjustment for inflation or cost of living. What is a person to do when the income they had in their 60s is not enough in their 80s? It is important to have savings at the point of retirement, and it may be wise to take a portion of this nest egg to arrange for additional income for the later years.
For example, a couple, both age sixty-five, retire and have adequate income. But as the years slip by, they find what was once an adequate income at the beginning of retirement is just not enough now that they are eighty years old. Thankfully, they made provisions for this through a wonderful gift income plan with ABWE. Although any amount of $1,000 or more is acceptable, they decided to make a gift of $50,000 to fund a Deferred Gift Annuity. When they reach eighty years of age, approximately $612.50 a month of additional income will begin. This income will be guaranteed for both lifetimes. They also like the idea of only having to pay income tax on a portion of this income. At the time of their gift, a charitable deduction of $31,795.00 was allowed against federal income taxes. A variation would be to split the gift and receive half of the income starting at age 80 and the other half starting at age 85. This same arrangement is also available for a single person, or a child could be added to the agreement as a great way of passing on an inheritance.
One of the best features of this agreement is the way world missions, through ABWE, is financially supported through your giving. Please contact us for any additional information. We would be happy to provide illustrations for your age.
Please let me know if you would like additional information.
Spencer Jackson
Director of Planned Giving Ministries, USA
(800) 921-2293
www.abwe.org/give
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David Green
Canadian Planned Giving Representative
(519) 426-1117
www.abwe.ca
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Recent Stories
5/3/12
May 2012 G.R.A.C.E. Investigation Report
G.R.A.C.E. Investigation; 1-year update
4/16/12
Mary Lou Brownell passes away at 82
Brownell served in Bangladesh and the Home Office for many years.
3/27/12
Corabelle Stowell, wife of longest-serving Board member in ABWE history, passes away
Her husband, Dr. Joseph Stowell II, went home to be with the Lord in June 2007
