Do Well by Doing Good
During his long career, Tom Moore has assisted many people to make better investments that helped them have happy retirements.
The Heinz College alumnus, who graduated in 1986 with a master’s in public management (MPM), began his career as an annual and planned giving fundraiser for Carnegie Mellon. Later, he moved on to a 20-plus-year career as a financial and investment planner with PNC Bank, Morgan Stanley and Greycourt & Co., advising individuals and charities in the areas of investment planning, gift planning and estate planning. (He also was an adjunct professor at Heinz College in the MPM program for a period.) Yet, as his own retirement approached, Tom found himself looking for the best way to make charitable gifts to his undergraduate and graduate alma maters while generating reliable retirement income for himself and avoiding negative tax implications.
“I am very aware that people are hardwired to make major mistakes with their investments,” said Tom.
He wanted to avoid taking a trip down the wrong investing road himself as he approached retirement. As part of his retirement strategy, Tom worked with Carnegie Mellon to establish a charitable gift annuity (CGA), a contract between a Tom and CMU that allows him to make a sizable gift of cash, securities or other assets and, in return, receive a partial tax deduction for the gift and a fixed stream of income for the rest of his life.
“A CGA basically acts like a bond,” says Tom. “With this CGA, we found a sweet spot at age 71 where I receive a payout from the CGA that is greater than any reputable bond available right now. CGAs are smart and personalized, and a very easy process at CMU.”
Aside from its financial positives, a CGA provides another important benefit — it allows donors to support an organization about which they care. For Tom, that was Heinz College.
Tom attended Heinz College as a part-time evening student, but he still connected deeply to Dick Cyert, then president of CMU; Al Blumstein, past dean of the Heinz School; his fellow students; and CMU as a whole. He even served as president of the Heinz School Alumni Association for a period. He has many fond memories of the time he spent at CMU and the relationships he made there.
“I had so much fun at Heinz,” says Tom. “I love it to this day.”
Today, Tom is retired and living in Pittsburgh’s Squirrel Hill neighborhood, but still keeps active and connected to CMU, attending as many Osher Lifelong Learning Institute classes as he can and keeping in touch with many friends and colleagues from CMU.
“Every time I am on campus crossing the quad, I see the 27-year-old Tom Moore walking around,” says Tom. “I want to tell him that everything you were scared of worked out okay!”
Higher Rates, Bigger Benefits
Give your retirement income a boost while supporting the charities you love — such as Carnegie Mellon — with a charitable gift annuity (CGA). On July 1, for the first time since 2012, CGA payout rates increased, making a gift in this way an even smarter option than it was before!
How does it work?
You make a gift to Carnegie Mellon, part of which is tax deductible. Then you receive fixed annuity payments each year from the university for the rest of your life. Any remaining gift amount after the end of your life will then go to support CMU. CGAs can be funded with gifts of appreciated securities, avoiding capital gains taxes on those securities in the future.
For more information
To discuss if the tax-smart, incominggenerating CGA is the right option for you, contact the Office of Gift Planning at 412-268-5346 or firstname.lastname@example.org .