June 2017 – Q: I am 45 years old and just getting started in IRA savings.Should I establish a charitable gift annuity?
A: For anyone 10-15 years from retirement I recommend considering a CGA. A contribution of $2000-$4000 annually in a charitable gift annuity is a great way to create supplemental income for the rest of your life. This income is not impacted by your savings or investments in the markets.
A CGA is an ideal arrangement for people who want to establish a regular, permanent lifetime income stream. However, it is also important to realize that a CGA is only part of a solid retirement strategy that should include social security and income from other savings.
Finally, remember that a CGA is not an investment. It is a gift to the Lord’s work. The income that you receive is a promise from the ministry of your choice that you will receive an income stream for the rest of your life.
For more information, I would suggest that you contact the AFA Foundation.
Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (afr.net).
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AFA Foundation: 800-326-4543, ext 345