Building a Legacy a financial and charitable newsletter
• fall 2005
CD Rates Got You Down? Charitable Gift Annuities Offer High Returns Without High Risk
“The charitable gift annuity allowed us to accomplish our goals; we were able to make a substantial gift to the college and receive annuity payments for the rest of our lives.” —Chief Justice Douglas Amdahl
D
o you want a dependable return on your savings? Maybe you’ve been investing in certificates of deposit, hoping for the best interest rates. Rates for CDs, however, have been like a roller coaster. The past two decades have seen the rates skyrocket to all-time highs and plummet to new lows. Consider a better option: Create a charitable gift annuity with William Mitchell College of Law. We’ll pay you an attractive rate of return that never changes— an annual fixed amount for life. What’s more, you’ll receive a tax-saving charitable deduction when you itemize on your tax return, and you’ll gain the satisfaction of knowing your generous gift will help meet William Mitchell’s needs. Many people planning for retirement find charitable gift annuities an attractive option. William Mitchell alumnus Minnesota Supreme Court Chief Justice
Douglas Amdahl ’51 and his wife, Phyllis, included a charitable gift annuity in their retirement plans. Amdahl explains, “We wanted to do something to support William Mitchell but also wanted to make sure we had enough income during retirement. The charitable gift annuity allowed us to accomplish our goals; we were able to make a substantial gift to the college and receive annuity payments for the rest of our lives. It’s a win-win for everyone.” The amount you donate is up to you. The rate of return you’ll receive is determined by your age at the time of your gift. The older you are, the higher the rate you’ll secure when the contract is signed. Example: Ruth, aged 70, transfers $10,000 to us. She’ll receive a fixed rate of 6.5 percent, with annual payments of $650. She’s entitled to an income tax charitable deduction of $3,777.* In her 25 percent tax bracket, her tax savings will be $944. And part of each payment will be tax-free throughout Ruth’s life expectancy. To discover your benefits without obligation, call Marie Ruzek, Director of Gift Planning, at (651) 290-6412. She’ll figure your fixed payment and estimated tax savings. *Assuming quarterly payments and a 4.6 percent charitable midterm federal rate, which changes monthly
Chief Justice Douglas Amdahl ‘51