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The Big Move
"'I've got big news for you!' Anna exclaimed over the phone one morning. We barely had time to sit at our desk and take a sip of coffee before she called. Anna was one of our most dedicated volunteers and we always knew that when she called this early in the day, it was something important. 'I'm moving,' she said.
"Our hearts sank on that bit of news, for we feared that she meant she was moving away. 'Don't worry, though,' she quickly added. 'I'm not moving far - just across town - to a nice retirement center.' Anna was in her late 70s, and we knew she had been thinking about this for awhile. She was a widow and had no close relatives.
"'I decided that I was tired of maintaining my house, fixing my meals and worrying who's going to find me if I happen to fall and break a hip. Plus, it gets kind of lonely around here,' she said. 'I get all my meals at the retirement center, they'll clean my apartment weekly, check on me if I don't show up when I'm supposed to, take me to the doctor and shopping, and they have a whole list of things to do to make new friends. And another nice thing, everything is covered in one monthly fee.' We congratulated her and said we could hardly wait until she was settled and we could bring her a housewarming gift.
"'The other reas on I called you,' she continued, 'was to ask you about one of those life income gifts I've read about in your newsletter. I've got a lot tied up in my house, which I'm going to sell. I also have some stock and other investments. I certainly want to hold on to much of that for a rainy day.'
"She went on to say, 'In the retirement center, my monthly expenses are set. I know how much money I need each month. I have enough in savings to cover the first year of care. However, after that I need some help. What I'd like to do is convert some of my fixed investments and some of the proceeds from my house into a way that will provide me with an income that is equivalent to the amount my future retirement home charges.'
"Anna told us how much her monthly rent would be. We told Anna that a deferred charitable gift annuity would be perfect for her, especially considering the generous payout rate she would receive at her age. 'These are very simple to set up,' we said. 'You'd make a gift to our organization and we'd agree to pay you a fixed income for life beginning on the date you select. In addition, a part of your future income would be tax-free and you'd get a nice income tax deduction now. And, if you decided to fund the annuity with any of your appreciated stocks, you could reduce your capital gains taxes. We could also arrange for you to receive your income monthly in order to make your rental payments.'
"As we visited on the phone, we did a few quick calculations and determined how much she'd have to donate to receive an income that was equivalent to her rent. 'That's exactly what I'd like to do!' she said. 'You know, I've been a volunteer for your organization for years. And this is a way I can do something even more for the future. But don't worry. I also intend to keep volunteering as long as I can.'"
-- Reprinted from LCMS Foundation Online Newsletter, May Week 1 2007
For more information on how you or a family member might benefit from a charitable gift annuity which provides a planned income, tax breaks, and the opportunity to support charities of choice, contact Vicki Strong, Life Planning Ministries, 651-730-5049. We will connect you with a congregational gift planner (at no charge to you) or refer you to financial planners who can work out the details!