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Ages 40s to mid-50s

Members of this age group are often in their peak earning years.  They are finished (or nearly so) writing checks for college tuition for their children and mortgage payments.  Their attention may turn to maximizing retirement savings.

Among the financial challenges facing people in this age range:

  • Minimizing income tax by taking advantage of deductions, including those for contributions to retirement accounts

  • Providing financial and personal assistance to aging parents

  • Helping their children with down payments on homes

  • Establishing college funds for their grandchildren

  • Keeping estate planning documents current with changing family needs

In addition to the estate planning documents for those under age 40, members of this age group should consider adding:

  • Living trusts to avoid probate costs, provide privacy and designate successor trustees for business interests

  • Disability and long-term care insurance coverage

  • An umbrella insurance policy to provide additional protection against extraordinary losses beyond regular auto and homeowners coverage

Because people in this age group can lose 36 cents or more of every dollar they earn, they could certainly use the charitable deduction on their income taxes.  They may also be looking for ways to make more of an impact with their gifts to organizations they support.

Among the charitable techniques attractive to people in this age range:

  • Cash gifts

  • Gifts of appreciated property, which provide deductions equal to the fair market value, not just the price originally paid for the assets

  • A contribution of life insurance that is no longer needed for family security, either as an outright gift of the policy, naming charity as a beneficiary or contingent beneficiary, or by contributing the policy to charity, thereby generating an income tax deduction

  • A bequest in a will or living trust

  • Naming charity as a beneficiary of an IRA or other retirement plan

  • Deferred payment charitable gift annuities that generate current income tax deductions, provide payments that can start at retirement and make a significant gift to charity

  • Charitable remainder trusts that generate income tax charitable deductions, avoid some capital gains tax when funded with appreciated securities, provide payments for life or a term of up to 20 years and leave a gift to charity

  • Charitable gift annuities that can be arranged to make fixed payments for life to parents or grandparents

Ages 40
and younger
Ages 40s
to mid-50s
Ages mid-50s to 60s Ages 70
and older

Please contact us for more information on any of the ideas above.


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