Deferred Charitable Gift Annuity Creates Win-Win-Win for the Present and Future

SealyAdapted from article written by Colleen Farrell (October 2012)

Local psychiatrist John R. Sealy, MD, Distinguished Life Fellow of the American Psychiatric Association (DIFAPA) is no stranger to the concept of giving back. He has been a long-time supporter of and served as chairman of the board of the Switzer Learning Center, a non-profit special learning school with a clinical treatment program for students who have learning disabilities, emotional problems, attention problems and behavioral disorders.

While meeting with Torrance Memorial's Health Care Foundation to learn more about setting up a planned giving program to benefit the Switzer Center, he learned of the tax advantages with planned gifts. This inspired him to set up his own planned gift to benefit Torrance Memorial!

Sealy elected to set up a deferred charitable gift annuity. Similar to a charitable gift annuity, this type of annuity may be a better choice for younger donors planning for supplemental income in retirement. "It provides immediate tax benefits and a guaranteed source of income (a portion of which is tax free) for the rest of your life. The longer you wait to withdraw money, the more it pays you. And the hospital receives the remainder after your lifetime," Sealy said. "It is clearly a win-win-win for everyone."

With his financial future secure, Sealy, a history buff, can spend less time worrying, and more time enjoying pursuits he loves, such as reading and gardening at his Palos Verdes home. He also feels a sense of pride in his contribution to help build an even stronger health resource in the community.