What is a Deferred Annuity?
The gift Annuity is established now, with payments beginning at a specific date in the future (such as your anticipated retirement date, 65th birthday, etc.). The Rate of Return for those annuities are higher, and they also provide a substantial tax-deduction in the year the Gift Annuity is established. As an example: Mrs. Nelson is 45 years old on her closest birthday, and would like to plan for her retirement years. If she decides to fund a Deferred Charitable Gift Annuity with $10,000, she could begin receiving payments in the month of her 65th birthday. In addition, Mrs. Nelson would also receive a significant tax deduction in the year of the gift. She would begin receiving payments in 20 years at the annual rate of 18%. This would provide her with $1,800 every year, for the rest of her life.
