Creating a "Win-Win" Retirement Strategy

by University Communications,

When planning for retirement, Patricia Davidson Hogan CLA’69, wanted to create a life-income plan that would achieve three goals.

She accomplished these goals by contributing appreciated stock to a charitable trust at Willamette, which provides Pat a lifetime of inflation-resistant income.

“In planning my transition from working to retirement, I was seeking a secure source of retirement income. The charitable trust enabled me to make a tax-free exchange of growth stocks for a diversified investment portfolio managed by Willamette. In addition, I used the income tax deduction generated by the trust to offset capital gains from other sales I made outside of the trust,” she says.

Pat’s second goal was to spend less time on activities related to generating income for herself. “The trust gives me access to Willamette’s financial professionals and the University’s outside money managers,” says Pat. “Although I have a say in the trust’s investment strategy, I am completely at ease letting Willamette handle trust investments, allowing me to enjoy my retirement.”

Finally, Pat wanted to support her alma mater. “I was pleasantly surprised to learn that I could designate how Willamette uses the assets in my trust at the end of my life. I designated my trust to create an endowed fund to provide (in perpetuity) grants to faculty and students for projects to advance sustainability,” she says. “This is gratifying to me because my trust will further my interest in protecting the environment and also encourage entrepreneurship among students and faculty.”

In fact, Pat is so pleased with the way things have gone with her trust at Willamette, she made another contribution in 2015. She gifted appreciated stocks that had very little basis, and in addition to the income she will receive from the gift, she will also see a huge tax savings on the capital gains and a sizeable tax deduction!

“My charitable trust is a win-win for Willamette and me,” Pat concludes. “I couldn’t be more pleased about what I have done.”

Not everyone has the same objectives as Pat. Nevertheless, virtually everyone who is interested in supporting Willamette can create a win-win outcome through a planned gift. For more information, contact Lori Hoby CPA, Senior Director of Gift Planning, or Cathy McCann Gaskin JD, Associate Director of Gift Planning.