Boomers in Retirement: Asking the Right Questions to Inspire Generosity
Will you give more or less in retirement?
That’s the question Wealth Advisor Kent Jensen, who was recently named to InFaith's VIP-Hall of Honor, asks clients to inspire their charitable planning.
“They haven’t thought about it, so they appreciate the question,” Kent says. “I see clients shift their idea of retirement, and their charitable planning has to be flexible to reflect that.”
About half of Kent’s clients are retired, and the rest will hit that milestone in the next 20 years. He explains that baby boomers grew up watching their parents save money and limit spending to give their kids every possible advantage. Boomers want something different.
“They don’t want to leave money to children when they’re gone. They want to enjoy life and travel. But when they reach their 70s, they realize they also want to be part of something bigger,” Kent says.
His question about giving more or giving less is just the spark many clients need to start making their plans. “They are generous, and they realize they should think about where to share their money,” Kent says.
Women Take the Lead
One trend in charitable planning is acknowledging that women play a significant role in making the decisions. Kent could not agree more.
“We have to get the buy-in from the wife because she almost always controls the purse strings. And either directly or indirectly, she drives the discussion when choosing charities,” he says.
Donor Advised Funds Provide Flexibility
One of Kent’s clients recently established a donor advised fund at InFaith Community Foundation. Kent explained how she could double or triple her gifts by donating stock from her Thrivent brokerage account.
“I discourage clients from just writing a check because they get so much more benefit from giving securities,” Kent says. “They won’t be taxed on the capital gains and can give enough to surpass the standard deduction threshold under the new federal tax law.”
With that in mind, the client and her husband contributed $40,000 to their donor advised fund. Over the next four years, they plan to donate their typical $10,000 per year to their church and to various charities they are passionate about.
"Clients donate assets, get their tax deduction and then the flexibility begins," Kent says when summing up why donor advised funds are popular with his clients. "They like being able to choose and change the charities they support and the ability to schedule their support online using the InFaith website."
“The end goal of what we do is help people be more generous, and InFaith has the tools to do that,” Kent says.
Get Started. Contact InFaith gift planners to explore the possibilities for your clients at 800-365-4172.