Search the Site

AFA Journal

MONEY

Honor the Lord when you retire

Glen Fradenburg
AFA Foundation Director
AFA Journal, July 2001 Edition

What does charitable giving have to do with retirement planning? Lots, if you consider the benefits of a deferred payment gift annuity (DPGA) with American Family Association Foundation (AFAF).

Here's how it works. You decide how much you want to contribute. You can place as much into your annuity as you want (minimum $2,000). You can either write a check or transfer stock.

An example: You're 40 years old and establish a $5,000 DPGA with AFAF. You want your annuity payments to start arriving when you reach age 65. (You can defer payments as long as you wnat. The longer you wait, the larger your payments.) When you reach 65, you'll start receiving regular payments for as long as you live.

Another benefit includes a charitable income tax deduction for a portion of you contribution in the year the DPGA is established. If you can't use the deduction in that year, you can carry forward the excess deduction for up to five years.

More good news - part of the payments you receive from your annuity will be tax-free. Plus, if you have a large estate, a DPGA could save major estate taaxes.

Finally, while enjoying your retirment, you'll have the joy of knowing that when you go to spend eternity with the lord, you have been a good steward by allowing Kingdom work to continue through AFA. The reminaing balance in your DPGA goes directly to AFA to further His mission.

Contact AFAF for a free, no-obligation illustration to find out if a DPGA would work for you.