Chuck Waterman

"Deferring taxes is simply the reason for the charitable gift annuity I use."

While working as a stockbroker, Clarence (Chuck) Waterman planned thoughtfully for retirement and philanthropy. He and his late wife, Pam, created a charitable gift annuity at Huntington Hospital a number of years ago, enjoying a charitable income tax deduction at the time their gift was created. They chose to defer annuity payments, however, until after Chuck's retirement.

Over time, the couple created additional gift annuities, staggering the dates at which they would begin receiving annuity income. Chuck compares their gift annuity strategy to his investment strategy during his time at Morgan Stanley. "I would purchase different bonds with different dates and coupons." Staggering the bonds' maturity dates was a conservative approach and one that helped maximize client returns, he notes.

Now retired, Chuck has continued to create charitable gift annuities, but no longer defers payments. "While I was working, I didn't want the additional income. Now I'm using the payments - and I still get the tax benefits" he explains.

"There's no magic in this," Chuck demurs. "Helping the hospital is the reason I give, and deferring taxes is simply the reason for the method I use."

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