Man donating money on phone

Charitable Giving: The Ultimate Triple Win

When planning for your financial future, there are a few things that are top-of-mind: a retirement fund, money to leave behind for your family, and saving, conserving, and protecting your wealth. Charitable giving can help with all of those factors. While it may sound counter-intuitive, giving more can mean that you have more money in retirement and more to give to your family when you are gone.

We speak with many people who are hesitant to make sizeable charitable donations because they view it as a transaction, or a wealth deduction. Thinking of charitable giving in this way is a microeconomic perspective and can put you at a financial disadvantage. We challenge you to evaluate your financial situation and plan on a macro-level, where all facets of the plan are connected and you keep your wealth in motion. This approach means that your charitable giving can actually increase your wealth and be a strong part of your strategy.

With a holistic and well-balanced financial treatment plan, charitable giving can act as a “triple win” in the following ways: 

  1. Have more income in retirement.
  2. Not disinherit your spouse or children.
  3. Make a gift to the charity of your choice and see the results of your gift during your lifetime.

When a well-positioned charitable strategy is paired with a traditional retirement plan, the tax benefits are three-fold. There is the potential to receive a tax deduction up front, a tax deferral on growth inside the plan, and tax-free access to investments at the end. Charitable giving, when carried out properly along with other diversified assets can be one of the most powerful distribution strategies.

There are a few different approaches to take, such as the TurboTithe strategy or a charitable remainder annuity trust (more on this in our book, Your Retirement Smile). Many people don’t take advantage of these opportunities in their financial plan because they are unaware of the benefits, or they did not find out about them early enough in their career. The right financial advisor who is concerned with your passions and best interest can help you work through the ideal method for your overall financial plan.

The bottom line is this: the better you are positioned financially, the more options and income streams you will have in the future. This gives you the freedom to make proactive decisions, and allocate your money how you want to—whether that means giving to charity or using it in other ways.

Let us talk to you more about charitable giving as a win-win-win strategy. Visit our website and give us a call to get on the right track with your financial future.