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Charity also begins at home. I think nowadays our kids need a lot more help than we did to get started. My first house in 1961 cost less than three years income to buy. Today it takes over six years income to buy a similar home. There are a number of financial planning arrangements where
children can enjoy part of their inheritance today and you can get to see them enjoy it. A popular one is to assist them getting into their first home. By loaning them part of down payment by way of a second mortgage with little or no payments, you can help them get their first home much earlier than if they had to do it all on their own.
There are a number of financial products and arrangements designed to assist people in achieving their charitable giving goals. With tax relief on donation it makes it possible to do far more for your favorite charity than you could ever achieve if it was not tax deductible. You can have a charitable tax deduction up to 20% (Now 75%) of your net income. If your contribution cannot be fully claimed in year, you are allowed to carry forward deduction up to five years. Gifts to Canada or a province are not subject to 20% limit. Property, Art, etc. can also be donated and deductible if properly certified.
A little know option is to donate to a charity monies, or property and in return donor receives an annual income for a specified number of years, or for life. The donor gets an immediate tax deduction based on annuity actuarial tables and an annual income. The charity gets funds now, buys you an annuity to guarantee your income and has balance for their charitable work. Another way to give to a charity far more than you normally could, is to purchase life insurance whereby charity is both owner and beneficiary. You pay annual premiums and charity gives you a tax receipt each year equal to life insurance premiums. On your death charity gets death benefit, which is a far greater amount than sum of premiums paid.
So, at long last I'm enjoying my success. I am able to do more for my family and help others that are not so fortunate, because, "There but for grace of God go l." Saint Peter! Open that gate. My camel's coming through that damn eye of needle!
Copyright 2004 – www.money-software.com
Peter F. Baigent CFP, CLU, CHFC, RFP. is a Past President of the Canadian Association of Financial Planners for British Columbia, a former Director of the Canadian Association of Financial Planners. He has spoken across Canada on financial planning matters and has taught courses for the Chartered Financial Consultants & Certified Financial Planners degrees. He is the founder of Money Minders Software which produces financial planning software.
