Money Talks

Agency Sales,  Mar 2007  by Eisinberg, Lee,  Corbett, David

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Charitable Remainder Trusts May Satisfy Philanthropic, Tax And Investment Goals

Is it possible to improve your financial position by giving away some of your assets? It sounds contradictory, but federal tax law provides significant incentives in the form of capital-gains tax avoidance, immediate tax deductions, and tax-advantaged accumulation for gifts made using a charitable remainder trust.

Provides Balance

Consider using a charitable remainder trust to balance your wealth allocation between your charitable intent and consumer needs for yourself and your heirs. If you have highly appreciated securities as a result of market advances and you are concerned about their future value, a charitable remainder trust may solve the problem by taking your gains and coming out ahead.

Benefits Your Heirs, Your Charities and You

Contributions to a charitable remainder trust are irrevocable. Proceeds from the trust are paid to your selected income beneficiaries for their lifetimes. The remaining assets pass to the charity or charities of your choice, usually after the death of the last income beneficiary. By combining this provision of the tax law with other sound investment planning techniques and competent asset management, it is possible to create benefits for your heirs and yourself - and make a meaningful gift to a worthy cause.

Contact your financial, tax and legal advisors to discuss how a charitable remainder trust can work for you.

Lee Eisinberg is a financial advisor with Able Financial Group in Scottsdale, Arizona. For more information, please call Lee Eisinberg at (480) 258-6098. Wachovia Securities Financial Network, LLC, member NASD and SIPC, is a registered broker-dealer and separate non-bank affiliate of Wachovia Corporation. © 2006 Wachovia Securities Financial Network, LLC.

Perils Of Retirement

by DAVID CORBETT

You couldn't wait to retire. Now you've done it, and your life feels unhinged. Your calendar and e-mail in-box are empty. Your spouse wants you to do anything that involves leaving the house. And you feel guilty for not being productive.

Welcome to retirement. Even those who work parttime after leaving a primary career, as most people now do, face major logistical and psychological challenges. Retirees who don't anticipate these landmines may learn about them the hard way. But you can prepare for them,

Here are six pockets of turbulence and suggestions for how to avoid them.

* Where did the time go? Retired people often say they've never been so busy in their lives. But there's a difference between being busy, on the one hand, and on the other, being engaged in doing things that satisfy, help us grow as human beings or enable us to help others. You may ask, "How did I get swept up in a bunch of activities that, to be honest, don't excite me all that much?" Certain activities, considered alone, may be good and worthwhile, but what about other demands on your time? Everyone has to strike a balance between commitments and keeping the flexibility that lets us remain in control of our time. A key rule is to reject demands on your time that don't fit your short- or long-term goals.

* "I used to be ..." People often make the mistake of allowing themselves to be defined by their careers. If they fail to diversify, they pay the price - unhappiness - when a career is pulled away. For a driven type person who was a top corporate executive, it might take a while to get over the social awkwardness of not defining oneself by one's career. In reality, you don't lose your identity when you quit a job. You may shed one of your identities, but who you fully are, inside, as a human being, is deeper. Look at your identity as a work-in-progress that evolves with you. Ask questions you may have thought were answered once and for all: Who am I? Do I matter.7 What can I do? New answers yield new purposes when the old underpinnings are pulled away.

* Loss of work-related social bonds. Even if you're making new friends, a key set of relationships with people in your life has changed. Not facing this reality and, as a result, not taking time for proper closure with these relationships, can leave you feeling rejected when former colleagues don't call you. That isolation can prevent you from moving forward in your life. Build your new networks before you leave your job. Find new social circles. Turn to family and old friends for support - and to new friends and colleagues as well.

* Loss of support systems. This one is hard for people who had secretaries, lots of high-tech office tools to keep them on track and assistants to whom they could delegate tasks. They may lack the discipline or support they need to get through the day seamlessly. Having to replace the ink cartridge in the printer or make their own travel arrangements can drive them crazy. Self-reliance is simply the cost of leaving your job. You have to develop these skills. Yes, you have to think big and follow dreams - but you may need to change the toner cartridge, too.