Legacies A publication of the United Methodist Foundation of Louisiana
Inside This Issue
How Can an Endowment Gift Benefit You? Page 2
ENDOWMENTS:
A Spirit of Generosity Growing up in Columbus, Ga., Dr. Lou Day’s father would tell him stories about life during the Depression. He, like everyone else, struggled financially, but he was generous with what he had, providing food and medicine to those in need. Lou remembers his father saying, “I wish I were rich, so I could give away my money to the poor.” As Lou heard these stories, it kindled in him a spirit of generosity that would last a lifetime. Lou is Alumni Professor Emeritus of the LSU Manship School of Mass Communication. An expert in media law and ethics, Lou has taught both graduate and undergraduate courses and has received many top honors and awards for his teaching and research.
How Much Will You Need to Save for Retirement? Page 3
New Board Members Elected Page 4
“Where Faith and Money Come Together”
2nd Quarter 2021
He is a longtime member of First United Methodist Church of Baton Rouge, where he serves on the Church Council and is the primary teacher for the Aldersgate Sunday School class. The class is known for its generosity, donating monthly to HOPE Ministries of Baton Rouge and setting up its own endowment fund at the Foundation for youth mission trip scholarships. Lou has put his generous spirit into practice by establishing the Louis Day Leadership Fund, an endowment at the United Methodist Foundation to support youth leadership development. The principal of the endowment fund is kept intact and only the annual earnings are used to fund current needs. Lou has directed the annual Required Minimum Distribution from his IRA to the endowment to hasten the growth of the
Dr. Louis A. Day First UMC, Baton Rouge
principal. As the fund grows, the earnings will increase and the mission—to develop leadership skills in young adults—will continue in perpetuity. The first project is the hiring of a communications intern at the Foundation office. The Foundation staff partnered with the LSU Manship School to find a top-notch student to assist with its evergrowing communications efforts. A thirdyear public relations student from Baton Rouge will begin the internship in August. Lou feels that an internship is beneficial to both the Foundation and the student. While the Foundation will benefit from the student’s most current knowledge of digital marketing and communication techniques, the student will gain practical knowledge to build upon classroom experience. “I have no children, so the endowment is my way of passing on the spirit of generosity that my father instilled in me, forever,” Lou added.
Legacies
HOW CAN AN ENDOWMENT GIFT
BENEFIT YOU?
“Where Faith and Money Come Together”
2021 Board of Trustees Omer Davis Chairman Rev. Weldon Bares L. Nettles Brown Dr. Debra Davis Rev. Doug deGraffenried Mike DeHart Bobby Fahey Irwin Felps Dean Harvey Rev. Michi Head Jarvis Jones Drew Kennedy Sandra Kuykendall Eunice Val Lavigne Richard Lewis Mary Magee Rev. Ashley McGuire Rev. Brian Mercer Troy Searles Rev. Drew Sutton Dianne Wilkinson
Would you like to find a way to support your church or ministries that matter most to you even after you are gone? Consider the benefits of an endowment gift: •
You may be entitled to take a charitable income deduction;
•
You can help make sure that your church or favorite ministry is financially supported forever;
•
You can leave a legacy that will inspire others.
Rob Fairly President
Ways to Make an Endowment Gift
Contact Us:
Outright Gift of an Asset, such as cash, securities, real estate, business
8337 Jefferson Hwy. Baton Rouge, LA 70809
interests, etc.
Phone: (225) 346-1535 (800) 256-9317
or a percent of your estate.
Email: information@umf.org Web Addresses: www.umf.org www.umfgiving.org Legacies Editor: Kelly Johannessen kellyj@umf.org
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Bequest through your will or trust. Bequests can be a dollar amount, asset Beneficiary Designation Gift of assets, such as the following: • • •
Checking, savings and/or mutual fund accounts Retirement accounts, such as an IRA, 401(k) or 403(b) Life insurance policy
Charitable Life Estate, which is a gift of your personal residence. You remain living in your home.
Charitable Life Income Plans, such as a charitable gift annuity or
charitable remainder trust. These plans allow you to make a gift to ministry while enhancing your current income.
2nd Quarter 2021
Savvy Living
How Much Will You Need to Save for Retirement? Dear Savvy Living, Is there an easy way to figure out how much I will need to save for retirement? My spouse and I are both in our late fifties and want to figure out about how much we will need to retire comfortably. How much money you need to retire comfortably is a great question for all adults. Unfortunately, far too few are thinking about it.
for retirement. You may also be able to deduct your mortgage if you expect to have it paid off by retirement, and any child’s college expenses. Your income taxes may be reduced.
Calculating an approximate amount to save for retirement is a simple, three-step process that includes estimating your future living expenses, tallying up your retirement income and calculating the difference.
However, some costs could increase when you retire, like health care. Depending on your interests you may spend more on travel, golf or other hobbies. If you are going to be retired for 20 or 30 years you should factor in some occasional big budget items like a new roof, heating/air conditioning system or vehicle.
Estimate Living Expenses
First, estimate your future retirement living expenses, which is often the most difficult step. For a quick ballpark estimate, figure around 75% to 85% of your current gross income. That is what most people find they need to maintain their current lifestyle in retirement. If you want a more precise estimate, track your current living expenses on a worksheet and deduct any costs you expect to go away or decline when you retire, and add in new anticipated costs. Costs you can scratch off your list include work-related expenses like commuting or lunches out, and the amount you are saving
Tally Retirement Income
Step two is to calculate your retirement income. If you or your spouse contribute to Social Security, go to SSA.gov/MyAccount/ to get your personalized statement. The statement estimates what your retirement benefits will be at age 62, full retirement age and at 70. In addition to Social Security, you or your spouse may have income from a traditional pension plan from an employer. Contact the plan administrator to find out how much you are likely to receive when you retire. Add in any other income from other sources you expect to have, such as rental properties, part-time work or investments.
Calculate the Difference
Finally, do the math. Subtract your annual living expenses from your annual retirement income. If your income alone can cover your bills, you will be in a good position. If not, you may need to look to your savings, 401(k) plans, IRAs or other investments to make up the difference, or adjust your budget. For example, say you need around $60,000 a year to meet your living and retirement expenses and pay taxes, and you and your spouse expect to receive $35,000 a year from Social Security and other income. That leaves a $25,000 shortfall that you will need to pull from your nest egg each year ($60,000 – $35,000 = $25,000). Depending on what age you want to retire, you need to multiply your shortfall by at least 25 if you want to retire at 60, 20 to retire at 65 and 17 to retire at 70—that would equate to $625,000, $500,000 and $425,000, respectively. Why 25, 20 and 17? Because that would allow you to pull 4% a year from your savings, which is a safe withdrawal strategy. In most cases, this allows your money to last for your lifetime.
“Savvy Living” is written by Jim Miller, a regular contributor to the NBC Today Show and author of The Savvy Living book.
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“Where Faith and Money Come Together”
8337 Jefferson Hwy. n Baton Rouge, LA 70809
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New Board Members, Officers Elected
N
ew board members Eunice Val Lavigne and Rev. Drew Sutton were elected to the Board of Trustees at the Foundation’s Annual Meeting, April 27. Lavigne is a lifelong member of Camphor Memorial United Methodist Church of Baton Rouge, where she serves as Church Council Chair.
Lavigne
Sutton has served multiple churches in the Louisiana Conference of the United Methodist Church and is currently senior pastor of First United Methodist Church of Hammond. The following board members were also elected to serve as officers: Rev. Michi Head, Vice Chair of the Board; Dr. Debra Davis, Grants Committee Chair; Chris Spencer, incoming Foundation President, effective July 1, 2021; Sandra Kuykendall, Secretary; and Tracie Wharton, Controller. Current Foundation President Rob Fairly will retire on June 30, 2021. Board Chair Omer Davis will continue his term until 2022. The annual meeting, which was held via teleconference, celebrated the Foundation’s 45th year and its growth to over $200 million in Assets Under Management.
D. Davis
Head
Kuykendall
Sutton
Wharton
Spencer
Fairly
O. Davis