Retiring Soon? Ask Yourself These Four Questions about Your Charitable Giving
Many people in retirement want to give more of their time and financial resources to support charitable causes. This shift could be driven by factors including an increased capacity to volunteer, creating new social connections with like-minded individuals, a desire to make a positive impact on others or having sufficient financial capacity beyond their lifestyle needs.
Studies have shown that retirees are some of the most generous givers. A 2015 report by AgeWave/Merrill Lynch* referred to the significant giving potential of retirees over the next two decades as “America’s Longevity Bonus”—an estimated $8 trillion, based on the value of their donations and time through the year 2035.1 Furthermore, the study also revealed some introspective results on motivation: 7 in 10 retirees said that giving was a major source of their happiness.
If charitable giving will be an important part of your retirement, here are four questions to ask yourself as you approach your giving in this next phase of life.
How can my schedule include opportunities to give my time?
In retirement, you will have two resources to spend: time and money. How you spend your resources reflects your values. If charitable giving is an important part of your life in retirement, there is a good chance it could impact your time. Consider not only the amount of time but also how you will use your time to contribute and feel a sense of fulfillment in your efforts. Is there a regular interval at which you desire to volunteer your time to a cause? How will other activities, such as travel and time with family, fit into your ideal weekly schedule?
How can my skills and experiences support the causes I care about?
Many retirees have accumulated a lifetime of skills and experiences. Once they retire, it may seem as if there is no avenue to apply those skills and experiences. Many charitable organizations are looking for ways to increase their effectiveness in supporting their mission but may be inhibited by budgetary, personnel or talent constraints. You could be in a unique situation with your professional background to help the organization better address a particular need. Even simply giving your unique feedback without a huge time commitment could be beneficial to the cause.
What do I want my charitable giving to look like over the next five years?
The Women’s Institute at the Lilly School of Philanthropy’s 2018 report “How Women and Men Give Around Retirement” revealed that during the five years leading up to and after retirement, the likelihood and amount of giving hold steady, while spending in other areas declines. The survey found that the likelihood of giving increases by 5% from ages 60–70, while spending decreases by 22.7%. In practice, this could mean fewer work lunches and other spending needs that were part of your life during your career, with a desire to increase your giving commitments.
Your charitable giving may go through phases based on several factors. You might want to start by mapping out the first five years of retirement and then later adjust as you monitor your evolving financial resources, legacy plans and areas of charitable interest.
How can I engage my family in my charitable giving and legacy planning?
Once you retire, you might think more often about your legacy. Some foundational questions could include “How do I want to be remembered?” and “What are the values that I hope my family will cherish after I am gone?” If charitable giving is important to you, you may find sharing your charitable giving motives with your family to be a rewarding process. You could invite them to join you in supporting the causes you care about, such as volunteering together or making financial donations as a family.
However you plan to give in retirement, know that the impact you make can be as richly rewarding for you as it is for the people you touch.
*Certain third-party information in this material has been obtained from sources that Corient believes to be reliable as of the date presented; however, Corient cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. Corient has no obligation to update any or all such third-party information.
1 https://agewave.com/wp-content/uploads/2016/07/2015-ML-AW-Giving-in-Retirement_Americas-Longevity-Bonus.pdf
ABOUT THE AUTHOR
Chase Mouchet, CFP, CIMA
Chase is a Partner, Wealth Advisor in our Atlanta office. He joined legacy firm Brightworth team in 2015 as a financial planner, having previously worked at two independent financial planning firms. He is passionate about helping clients—particularly those nearing or in retirement—simplify their financial lives and maximize the impact of their wealth in areas such as charitable giving. He has been featured in Money Magazine’s Money Makeover and published in the Atlanta Journal-Constitution, the Dallas Morning News and Kiplinger. He is a member of the Georgia Planned Giving Council and the Children’s Healthcare of Atlanta Legacy Advisors. Chase received his BBA in Finance and BSFCS in Financial Planning from the University of Georgia and serves on the alumni board of the UGA Financial Planning program. Chase and his wife, Kate, live in Atlanta with their two children and are active members of their church. He enjoys spending time with his family, activities on the lake and cheering on the Georgia Bulldogs.
CONTENT DISCLOSURE
This information is for educational purposes and is not intended to provide, and should not be relied upon for, accounting, legal, tax, insurance, or investment advice. This does not constitute an offer to provide any services, nor a solicitation to purchase securities. The contents are not intended to be advice tailored to any particular person or situation. We believe the information provided is accurate and reliable, but do not warrant it as to completeness or accuracy. This information may include opinions or forecasts, including investment strategies and economic and market conditions; however, there is no guarantee that such opinions or forecasts will prove to be correct, and they also may change without notice. We encourage you to speak with a qualified professional regarding your scenario and the then-current applicable laws and rules.
Advisory services are offered through Corient Private Wealth LLC and its affiliates, each being a registered investment adviser (“RIA”) regulated by the U.S. Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “registered” does not imply any particular level of skill or training and does not imply any approval by the SEC. For a complete discussion of the scope of advisory services offered, fees, and other disclosures, please review the RIA’s Disclosure Brochure (Form ADV Part 2A) and Form CRS, available upon request from the RIA and online at https://adviserinfo.sec.gov/. We also encourage you to review the RIA’s Privacy Policy and Code of Ethics, which are available upon request.
Our clients must, in writing, advise us of personal, financial, or investment objective changes and any restrictions desired on our services so that we may re-evaluate any previous recommendations and adjust our advisory services as needed. For current clients, please advise us immediately if you are not receiving monthly account statements from your custodian. We encourage you to compare your custodial statements to any information we provide to you.