Retirement Income You Can Depend On
With all the ups and downs in the financial markets, many of our older friends are turning to the Michigan Tech Fund's gift annuity program to create a steady, dependable stream of lifetime income. They like knowing that every quarter they will receive the same amount, year in and year out.
They like the other benefits, too. Things like a good payment rate (up to 12% for a single-life annuity to a person aged 90 or older) and income that is partially tax-free. They like the income tax charitable deduction they receive and, of course, the fact that they are helping Michigan Tech to accomplish its important mission of preparing students to create the future. People funding the gift annuity with highly appreciated stock particularly like the partial bypass of capital gains they receive.
Easy Does It
To learn more, fill out our online response form below. Once we know your age and the size of the gift that you are considering, and whether it will be cash or stock, we can prepare an easy-to-read gift illustration that will tell you:
- How much you will receive for the rest of your life
- How much of your quarterly income will be tax-free
- How big your income tax charitable deduction will be
- How your gift annuity will benefit Michigan Tech
| Example: Mr. and Mrs. Smith are both 75 years old. They gave $50,000 cash to the Michigan Tech Fund on June 30, 2006 in exchange for a charitable gift annuity. Michigan Tech Fund's payment rate for their combined ages is 6.3%, which means they will receive $3,150 every year, or $787.50 every quarter. They also are entitled to a federal income tax deduction of $16,997 for the gift portion of the annuity amount. (Note: The payment rates vary, depending on one's age and the uniform rates currently being recommended by the American Council on Gift Annuities.) The Smiths will receive fixed payments for the rest of their lives. Even when one of them dies, the surviving spouse will continue to receive the same fixed payments for the rest of his or her life. Because the payments are backed by the full assets of the Michigan Tech Fund, the Smiths can have confidence that their annuity checks will always be there for them. |
You don't have to be married to obtain a gift annuity. In fact, single-life annuities pay a higher rate. Also, the older a person or couple happens to be, the higher the payment rate. However, you must be at least 50 years old to establish a Michigan Tech Fund annuity. You can place as much as you want in the annuity as long as it is at least $10,000.
Why not take a moment to fill out and submit the form below? This will allow our Office of Planned Giving to provide a tailor-made illustration that will show you just how well a charitable gift annuity can work for you. You can also obtain additional information by calling the Office of Planned Giving at 906-487-3325 or you can e-mail us with your questions.
Please note that this is only one of a wide range of gift planning options that we have available. We encourage you to visit our Gift Planning web page for information on other types of planned gifts. You also can explore our charitable gift planning options with the help of our Planned Giving Calculator, available through Foresight. Or, if you prefer to read about our many different giving options in a hard copy format, please visit the Request Information web page in the left bar of this screen under the title How to Give.