The Wall Street Journal quotes Tony Martignetti on Charitable Gift Annuities

The Wall Street Journal quotes Tony Martignetti on Charitable Gift Annuities.

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Gift Annuities Benefit Donors, Nonprofits
By Shelly Banjo and Kristen McNamara
February 3, 2009

Copyright ©2009 Dow Jones & Company, Inc. All Rights Reserved

Charitable annuities are the gifts that keep giving.

These vehicles allow individuals to support a charity, reduce their tax bill and secure a steady stream of payments for life.

The rates paid to annuity beneficiaries are scheduled to decrease in February, but they’re still attractive in today’s depressed market.

The American Council on Gift Annuities, a nonprofit that sets the rates that guide annuity payments, cut its recommended rates by .4% to .7% for annuities funded after Feb. 1.

But with guaranteed rates of 5.3% to 9.5% for individuals 65 and older, gift annuities compare favorably with cash-like investments. Five-year certificates of deposit are yielding 2.78%, for example, and the yield on 10-year Treasurys is 2.67%.

For someone seeking a fixed payment, “in the midst of a recession, those rates still look pretty good,” says Tony Martignetti, managing director of Martignetti Planned Giving Advisors.

Read the full article on the Wall Street Journal website.

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