There have been many articles and special programs during the past few months about what to do with money in the "short-term." It seems, however, that the various opinions do not concur on the "term" of the short-term. We can chuckle at the lack of agreement and pass it off as typical pundits vying for recognition in the rather esoteric "science" of financial forecasting, but what does one do in the "short-term"?
The Doubtful Doldrums
One common thread roaming through most of the prognostications is a concern for the strength of the global economic picture. One hears multiple warnings about the lack of support for economic growth in the "near, long-term" (whatever that means). No one really knows, but there does seem to be a consensus that those who are looking for a stable income for their retirement years may be under a serious challenge for the next few years. The Vanguard Funds, a large and widely respected mutual fund company, has recently recommended that older investors consider purchasing annuities to secure a reasonable rate of return on their retirement monies.
The "Confident" CGA
Since the Christian's "short-term" is considerably modified by our "long-term" view of eternal matters, it is encouraging to be able to accomplish both objectives. It is good to be able to secure a short-term solution that will enhance our effectiveness while we are still on Earth, and at the same time insure that our resources will continue to have a long-term impact participating with Kingdom ministries after we have joined our brothers and sisters in eternity.
If you are 70 or above, you might want to investigate the Charitable Gift Annuity (CGA) from ICR. Depending on your age and whether or not you want to include another person as a continuing beneficiary, the interest rate could range from 6.1% to 12%. The CGA also allows an immediate tax deduction as well as actual tax-free sheltering of a portion of the income, making the effective rates much more favorable.
ICR can prepare a specific proposal for you to consider that can help you focus your planning. Check the "CGA" box on the donor envelope or call us directly.