What if you could have more money for yourself and for your children BY GIVING to charity? We asked ourselves this question in light of our clients regularly donating to charity.

Boy were we surprised when we found out that we could!!

Over the years, we met with over 100+ estate attorneys and accountants to vet what we believed to be true. The worst response we heard was, “well it’ll work.”  The best response was “this could fundamentally change the way people give to charities.” Needless to say, we were pretty excited because the strategies themselves were not new, but severely under-utilized to create more wealth. You see, not many Financial Planners know nor want to know the many levels of charitable wealth.

Proof in the pudding

Let me illustrate.  I’ve found a great way to get people interested. On a piece of paper write “Person A.”  Next to person A write $1,000,000.  This represents your nest egg.  Now draw an arrow extending from the $1,000,000 and write $50,000 per year. Based on a Monte Carlo analysis, this is the maximum we recommend clients withdraw from their portfolio each year.

Now underneath Person A write, “Person B.”  Next to person B again write $1,000,000 with an extended arrow showing again $50,000 per year. This time you will write underneath Person B, “tax deduction $400,000.” Now ask this question, “Would you rather be Person A or Person B?” 

Person A has $1,000,000 with a $50,000 withdrawal per year.

Person B also has $1,000,000 with a $50,000 withdrawal per year

PLUS a $400,000 tax deduction.

• Which option do you think most people choose?
• Which option would you choose if the same strategy created more income, greater tax diversity and better asset protection?

If you regularly donate to charity, including tithing, give our office a call to learn how our strategies can work for you.