Sometimes clients don’t know what they don’t know. Financial Consultant Keith Berman finds that to be especially true when it comes to appreciated stocks.
“They know there are gains, they know they will pay taxes, and it’s my job to inform them of solutions they wouldn’t know about otherwise,” he says.
For Keith, it boils down to two questions he asks clients:
- What is the money for?
- Do you have charitable intent?
The answers to those questions help him give shape to recommendations for clients.
A retired couple Keith worked with for years asked for recommendations on what to do with individual stocks they owned through a previous brokerage relationship. When Keith asked what the money is for, they shared they wanted to leave money to the kids and make gifts to charity in the future.
In talking through the benefits of a charitable gift annuity, Keith was able to show his clients how they may be able to avoid capital gains taxes on the securities and receive a tax deduction for the gift while receiving tax-free income in retirement. “They liked the idea of ‘give and receive’ with a charitable gift annuity,” Keith says. “It’s different than just giving a gift with nothing in return.”
The clients gave about $100,000 to Thrivent Charitable and have begun receiving income quarterly. When they die, the remainder will go to a donor-advised fund and be distributed to charities they selected–an international Christian organization and a historically Black college in Alabama.
Over the years, Keith has recommended a variety of solutions from Thrivent Charitable, including donor-advised funds, charitable life insurance and charitable gift annuities. “I’m not a gift planner, but I know who to call to brainstorm the best solutions for my clients,” he says.
Contact our team of gift planners to discuss unique solutions for your clients.