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Secure Your Future

Secure Your Future
If you are like many people, you have watched your investments in real estate and in the stock market fluctuate over the years. There isn't much security in knowing that your future can be tossed around like the wind.

There is a solution - a plan that provides you with fixed income for life, avoids capital gains tax on the sale of appreciated assets and leaves a lasting gift to Westmont. This plan is called a charitable gift annuity.

Two groups of people are especially likely to appreciate the income and tax savings: those actively planning for retirement and retirees. With life spans getting longer, people are focusing more time and attention on planning their retirement. How will they fund it? Will they have enough retirement income? What is the best use of their assets? A gift annuity may provide answers, especially for those with highly appreciated stock or real estate. Cashing in the asset will trigger a capital gains tax, but using it to fund a gift annuity decreases the tax obligation and converts it into lifetime income, some of which is tax free.

Retirees whose incomes have dropped because of declining interest rates will also benefit from a gift annuity. The income can be quite high depending on your age, and a portion of your income stream may even be tax free. For example, an 80-year-old may be earning less than 1 percent with a CD or money market fund, but by establishing a $25,000 gift annuity with Westmont, would receive annual payments for life at a 6.8 percent fixed rate of return and a charitable deduction for the value of the future gift to Westmont. Even converting only part of the CD to an annuity will increase income and reduce taxes.

A gift annuity is a secure, stable source of income because it is backed by all of Westmont's assets. We maintain an account as required by state law for the payments to all of our annuitants. Use our website to learn more about the benefits of a charitable gift annuity or contact Kati Buehler at (805) 565-6058 or giftplanning@westmont.edu.


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