"GIFT ANNUITIES ARE LIKE POTATO CHIPS ..."
Usually when Christian giving counselors work with donors, a lot of their time is spent letting people know how their money can work for themselves—and for the Lord.
This time, however, counselor Gerry Heckmann was working with a pro. “In Daniel’s* work-a-day world, he had been working for secular non-profit agencies, helping donors set up charitable gift annuities,” says Heckmann.
When it came for Daniel and Sarah to retire, they knew they wanted their money to also work in WELS’ ministry and started a CGA. As he set up the paperwork, Daniel was already thinking ahead to the possibility of doing another and said, “Charitable gift annuities are like potato chips, you can’t have just one.
Here’s how it works. Daniel and Sarah made an irrevocable cash gift to the WELS Foundation. In exchange, they receive a fixed amount of income each year for the rest of their lives. When the annuity ends, the remainder of the gift will move to their designated ministry.
Even as this couple provides for themselves in retirement, Daniel and Sarah also experience the joy that comes from financially supporting the spread of the gospel. That’s even better than potato chips!
* Names have been changed to protect donor confidentiality.
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None.
But no one says that. They are invited to "Estate Planning Seminars." They hear from "Planned Giving Counselors." WELS lists them as divine calls.
Get that - God calls insurance salesmen into Word and Sacrament ministry.
Notice the example above from the WEL$ Foundation. The couple is buying an annuity. The only way someone can sell them an annuity is to have an insurance license in that state. For a variable annuity (geared to match stock funds) he needs another qualification.
The rules also allow that he work on a commission. As soon as the money is received for the annuity, he gets a percentage of the total.
Once the papers are signed, the gift is irrevocable. They may be giving it to the "church" and think it is their congregation. It may be the synod instead. Try getting the money back once the papers are signed. Not likely.
I checked with a reliable source. He said, "It is commonly understood that all giving counselors will obtain an insurance license. That is probably why they leave the job and become financial consultants. They already have a free list of fat-cat donors."
They are working for their own gain, and Thrivent gives them "grants" to travel around for presentations.
Would anyone call this unethical, greedy, and dishonest? What if the person manipulates a dying woman into buying an annuity?
Annuities are marketed for those expecting to live a long time. My mother got a small one and got a big return on it, because she was old but very healthy. It was a good way to protect part of her money. Some of it was left when she died and the remainder went to her heirs.
An annuity is not a good buy for a dying person, but it is great for the salesman. There is no health requirement, only a contract and the money. He would make at least 3% of the total, perhaps more. The money is paid to him immediately rather than slowly.
There are many forms of estate planning, many options. Annuities are sold by hundreds of companies. Why trust only one avenue, one company?
