Two men went fishing at a nearby pond. They brought poles, bait, and supplies to cook their catch over a fire. The first fisherman quickly caught a big, beautiful fish, but the second man went hours without a single bite. Finally, his bobber dipped under the water. He reeled in a huge fish…but immediately threw it back.
Bewildered, his friend asked, “Why did you let him go?” The second fisherman replied, “He was nice, but I didn’t bring a pan large enough to cook him!”
It seems silly, but many of us live like the second fisherman—so fixated on a particular outcome or limitation that we miss obvious opportunities in front of us. For instance, we want to make a lasting, generous impact on the world, but we don’t think we have the financial means to do it.
You know the saying, “cash is king.” But when it comes to charitable giving, retirement assets are an often-overlooked resource, brimming with opportunity. Some experts have even called qualified retirement plans “the most significant, yet underutilized” category of all giving options.
When you look beyond liquid assets and cast out into the pond of an IRA or retirement assets, you’ll have an opportunity to give in a way that:
- Increases your impact. A qualified charitable distribution (QCD) is a gift from your IRA to causes close to your heart. Those aged 70.5 or older with a traditional IRA are eligible to make a QCD. Those aged 73 or older can satisfy their required minimum distribution and avoid taxes on that distribution.
- Simplifies your giving. Naming a charitable organization as the beneficiary of your IRA is
one of the easiest ways to make a difference beyond your lifetime. It also spares your heirs a
tax burden. - Leaves a legacy. When you include a charitable gift in your estate plan to a cause you’re passionate about, it helps to sustain the organization’s future and the work they do in the lives of the people they serve. It’s also a beautiful part of the legacy you’ll leave behind.
If you’re looking for a way to maximize your generosity and make an impact for generations to come, don’t overlook the value of a gift from your retirement assets.