How Seniors Can Increase Retirement Income

VIDEO DESCRIPTION

The present economy contains factors that make certain planning techniques better than they have been in many years.

VIDEO TAGS

increasing retirement income   How To Increase Retirement Income   planning techniques   endowment   retirement   stewardshipIncreasing retirement income   

VIDEO TRANSCRIPT

This short video will illustrate how a person can increase income when faced with the problems caused by a poor economy, it will also show how a church can attract gives from an aging membership. Met Levy, Levy is 75, a widow and living on social security and some small investments. Levy has a $50,000.00 CD at the bank. She has three problems. First, her interest rate is a little 4%. That only spends off $2,000.00 a year. Second, all the interest taxable and her tax bracket that leaves her with $1,700.00 a year, she can take to the store and buy groceries. And then third, her CD was with mutual, one of the biggest outputs in the country, and they went bankrupt. Now it’s with J.P. Morgan Chase. But Levy is still scared to death she is going to lose her money. If you represent Levy’s church and you ask her to contribute to your endowment fund to increase your pledge or to contribute to the building fund or maybe a new organ fund, she is going to stick her hands at her pockets just like this man, turn them inside out and tell she would or she could but you don’t have any money. The key to get in a gift from Levy is to show her how she can solve her problems where the solution results in a gift to your church. Here is how we can do that. First, we move her CD to an institution that she has confidence in. Second, we increase her income to $3,150.00 a year, 76% of which was excluded from tax. The combinations of these two increase her effective deal from 3.4% to 6.7% and then we created an income tax deduction of $21,100.00. There’s a real good chance that she is not going to owe any tax for six years, because she can take that long to use up this deduction. It made it possible for her to sleep better at night because now, she has confidence in the financial institution that’s holding her money. And then finally, we set up a gift to your church of $50,000.00 when she dies. So here’s a before and after picture. We increase her income from $2,000.00 a year to 3,150.00. All of the $2,000.00 income was taxable but only 24% of the $3,150.00 is subject to tax. We increase her effective interest rate from 3.4% to 6.7% and created a $21,000.00 income tax deduction that she can use up over the next six years. And then ultimately we set up a $50,000.00 gift to your church. So here is a situation where a gift look like a possibility. But by showing Levy how she can solve a problem, we bettered her situation and set up a gift to your church. This is Bob Cavanaugh with the Smart Giver.

VIDEO SOURCE

http://www.contentdeity.com/video/116955014/How-Seniors-Can-Increase-Retirement-Income.html

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