If you could support charities more than you already do, while potentially saving taxes and preparing for the future, would you?
“It’s a no-brainer,” Thrivent Charitable donor Jennie recalls telling her husband, Bill, the day their financial advisor talked with them about
Comfortable living on their teacher pensions, the couple wanted help managing required minimum distributions (RMDs) from their IRA. They had invested an inheritance from Bill’s parents years ago, and required withdrawals promised to boost their retirement income. “Saving taxes on the money was very important to us,” Jennie says.
She and Bill hadn’t always taken immediate action on their advisor’s recommendations, but this time they did. The couple purchased a life insurance contract with Bill as the insured and Thrivent Charitable as beneficiary.
“It’s easy to put off decisions, but it’s so important to make a plan because you have no guarantee what will happen,” she says. “My advice is, put it on the top of your list.”
A few years later, the couple traveled to celebrate Christmas with family in another state. The next morning, Jennie went for coffee in the hotel lobby, and when she returned to the room, she was shocked to find Bill unresponsive. Her seemingly healthy husband died later the same day.
Just as she had since meeting Bill at church when they were in high school, Jennie has leaned on God while facing her future. “Our faith molded and shaped us to realize all the blessings we received,” she says. “I want to pass them on, and I’m so grateful to be able to do it.”
While adjusting to Bill’s death, Jennie’s financial advisor reminded her how several charities the couple had named would begin receiving significant annual gifts over 10 years. The remaining proceeds could continue to grow while invested in the Designated Nonadvised Fund.
She still speaks with awe about it. “Such a true blessing,” she says. “We couldn’t fund charities like we are without it.”
How life insurance can work with QCDs
Both new and existing life insurance policies can be used. After making the first premium payment, you may begin using qualified charitable distributions (QCDs) from an IRA for future payments if you are at least 70-1/2. As a charitable gift, those dollars would not be subject to income taxes.
Thrivent provides advice and guidance through its Financial Planning Framework that generally includes a review and analysis of a client’s financial situation. A client may choose to further their planning engagement with Thrivent through its Dedicated Planning Services (an investment advisory service) that results in written recommendations for a fee.
This donor’s experience may not be the same as other donors and does not indicate future performance or success. Payout rates, charitable deductions and other benefits vary based on a number of factors.