REAL
WORLD EXAMPLES
Example #1
John and Martha Smith have been members of their local church
for nearly 35 years. They make weekly as well as annual contributions
to support the efforts of their congregation. After discovering
the benefits of Pooled Income Funds they looked at their portfolio
and decided to use $45,000 worth of stock that they had for
15 years with a cost basis of $18,000. The stock paid no dividends
and if they sold it outright they would pay taxes on the $27,000
gain. By transferring the shares to their new Pooled Income
Funds account they were able to gain many significant benefits.
There were no taxes due on the transfer and sale of the shares,
they now receive a monthly income check from their fund for
the rest of both their lives and gained a charitable tax deduction
of $9,700. They named the church as the recipient of the remaining
account balance and received a framed certificate of recognition
that the church put on display to recognize their planned
gift.
Example #2
Mike Andersen has $75,000 in two Mutual Funds that he purchased
18 years ago. He has been reinvesting the dividends all along,
but now needs income and wants to re-balance his two funds
for income. Doing so would create a seizable taxable event
at the sale of the funds. He has also been a supporter of
a large regional non profit organization and would like to
continue supporting them any way he can. After looking at
Pooled Income Funds he decided to transfer his two Mutual
Funds to establish a new Pooled Income Funds account for himself
with the non profit as the organization to receive the balance.
Mike was able to avoid any taxable event giving him income
from the full $75,000 value. He also received a $24,300 charitable
tax deduction for establishing his new account. The pooled
Income Funds he choose currently pay a 6.28% annual income
paid monthly.
Every situation is different, the examples above are shown
as an illustration of how Pooled Income Funds can be used
in a portfolio. If you would like a review of your specific
situation, give one of our Planned Giving Advisors a call
toll free at 800-944-7730. They can run the numbers based
on your situation and the current IRS rate of the month that
is used to determine charitable tax deductions.
The information contained on this site is for educational
purposes only. It is not intended to be professional tax or
legal advice; consult the appropriate professional regarding
your specific situations. The investment profile is hypothetical,
and the asset allocations are presented only as examples and
are not intended as investment advice. Please consult a financial
advisor if you have questions about these examples and how
they relate to your own financial situation.
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