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Gift Annuities Offer Safe, Higher Yielding Alternative to CDs
Amanda Potter* is a retired elementary school teacher who graduated from Trenton State College in the fifties. Mindful of her parents' advice, she has always been a careful planner, buying Certificates of Deposit from her local bank.
Amanda: For about five years now, I have watched the return offered for CDs decline significantly to about 4.75%. I've looked for safe alternative investments, but there just are not any CDs with a nice rate of return. They all seem to be below 5% now.
Amanda's financial advisor suggested that a charitable gift annuity might increase her income and provide a tax deduction. Amanda thought that maybe a gift annuity could be helpful for her, but she wasn't sure how to research this option.
Amanda: I called TCNJ Gift Planning Office (609-771-3285) about this gift annuity thing. I discovered that at my age, a gift annuity would pay 6.7%. Plus, it provides an immediate tax deduction and part of my income will be tax-free.
After learning how easy it is to set up, I transferred $25,000 from a CD that had matured into a charitable gift annuity that gives me a 6.7% annuity for life.
And I am helping the College--a place that was very important in my life. This college made a real difference in my life. It is nice to be able to give back--and help myself at the same time!
Current Gift Annuity rates range from 5.7% beginning at age 60 to 11.3% for age 90.
* The donor's name has been changed out of respect for her desire to remain anonymous, but the details and quotations are accurate.
Please call The College of New Jersey Gift Planning Office at 609-771-3285, or e-mail jspencer@tcnj.edu for more information.
