Simpan Doa Ini Untuk Digunakan Agar Barang yang Dicuri Dikembalikan Lagi
You've done well in your life. Through hard work, smart moves and possibly divine intervention you've achieved a place in your life where you are in control. Your financial decisions are not forced. You can vacation when you wish, buy the car that you always dreamed of, be of assistance to your loved ones and live the life you want with your spouse. At this special time in your life, you may have a strong and compelling desire to give back to the world you've succeeded in. You're planning to do well by doing good.
These are indeed powerful feelings that could be inspired by your wish to positively impact the lives of others in need, support organizations that reflect your principles and ideals, satisfy your religious and spiritual beliefs or to support the arts and sciences. This is what is known as "social capital". There are many creative ways to satisfy these needs but I'm going to discuss a very simple way for you to achieve the goal of donating "altruistic social capital".
This is one way. It may come to mind to donate an annual dollar amount of funding to a favorite charity, let's say a local hospital. You wish to donate $100,000 a year. Of course, you'll assume that the money you're donating will be put to good use for equipment, annual drives and other events. You'll receive a tax deduction for your gift and every year the charity will be expecting to see that same amount. You'll relinquish control of the spending of those funds. That gift from you will more likely be spent and not invested for future use.
Here is another way; often used by creative individuals who understand the long-range importance of their gifts and their tax implications. By taking a portion of the $100,000 gift, say $80,000 to $60,000, they contribute the cash gifts as usual realizing the same tax benefits. The remainder of the money is used to purchase a cash value life insurance policy with the hospital as the owner and beneficiary. Life insurance you say? If you can get past the life insurance bias, yes, it is the most cost efficient and tax efficient way to establish your social capital. Why?
For example $30,000 annual premium for a 65 year old might purchase $1.6 million in increasing death benefit Universal permanent life insurance depending on health status. That means that if the insured died at age 80, the annual investment (premium) of $30, 000 for 15 years ($450,000) would return at least $1.6 million (23.7% return); income tax free. However, the death benefit could be estate taxable. Meanwhile the hospital still received $70,000 annually for those same 15 years. The use of a life insurance trust and/or one of many types of Charitable Trusts ( CRUT's, CRAT's etc.) can be used for additional tax advantages but that subject is beyond the scope of this article.
With this type of plan you control the donation, you the donor realize the same tax advantages, and at death (and we all will meet our end at some point) an income tax free death benefit, your altruistic social capital, considerably more than the dollars invested will go to your designated beneficiary, the hospital or church or other organization. Consulting with the proper team of insurance representative, accountant and attorney will help in making the right decisions. You will have done good by living well.
Alan S. Fernandez is president of Foundation Financial Services with a BBA in Finance and Economics from Iona College, studied under the Life Underwriters Training Council and Certified Financial Planner programs and with 15 years in the insurance industry is a well known problem solver among businesses and individuals alike. He is also an insurance instructor with Citicorp. He can be contacted at afern109@optonline.net or visit the FFS website at [http://www.foundationfinancialservicesny.com]
Article Source: https://EzineArticles.com/expert/Alan_Fernandez/121918
Article Source: http://EzineArticles.com/818727
