Retirement gifts are one of the easiest and most effective ways to make your money last for decades.
They’re also one of those things that seem so simple and intuitive at first, but have the power to dramatically impact your finances.
For many, this idea of a “spouse” retirement gift is a perfect fit.
But, to put it simply, not all of the money you give to a spouse is a “good gift” and, if you don’t give enough, it can be a burden.
For those who need help finding the right gift, we’ve put together this list of retirement gift suggestions for you.
Read More , a new survey by the National Federation of Independent Business shows that almost all Americans are willing to give a significant portion of their annual income to a retiree, whether it be for retirement, college, or for a house or condo.
And while a retirement gift can be great, it also depends on the recipient.
And for many, there are some simple rules to keep in mind.
What Is a Retirement Gift?
Retirement gifts generally come in three types: a “personal” retirement, a “family” retirement or “community” retirement.
A “personal retirement” is the money given to the retiree directly, rather than a gift to a family or a community.
A personal retirement can be given to a close friend, spouse, or child, or it can go to a charity.
A family retirement or a “community retirement” can go directly to a person’s spouse, children, parents, grandparents, or anyone who contributes to their retirement account.
A community retirement can go towards a retirement account, retirement savings plan, or retirement home.
A retirement gift usually has two components: a portion and a lump sum.
The portion is typically a percentage of a retireee’s annual income, and the lump sum is generally a payment of a certain amount.
For example, if a retirer has a $100,000 salary and a $200,000 pension, the “family retirement” would be $40,000.
That means if a person with $100k in income gives a $20k “family pension” to a friend, the friend would receive $40k of a $40K lump sum from the retirer.
The lump sum payment would be equal to 10% of the total income the retirees salary and pension were earned.
The final payment, the lump, is the difference between the amount of the retirement gift and the total amount of income the individual contributed.
The two types of gifts are often referred to as a “grant” and a “bond,” but they’re also called “payments” and “bonds.”
For example: A $100-per-year retirement gift from a family member who earns $100K annually.
A $200-per year retirement gift that goes to a $10,000 community retirement account that’s being managed by a community member.
If a spouse or family member wants a portion of the retireees income to go to their community retirement plan, they’ll pay $10k of the $40% retirement gift.
If they want the remainder to go towards their retirement home, they pay $40/year for the rest of the benefit.
How Much Should I Give?
The basic idea is that the money will be given directly to the person who’s contributing the most to the retirement account or community retirement.
And if the person contributing the highest is the most important, the person giving the largest contribution will get the most of the overall money.
However, it’s important to keep the amount generous.
If the person receiving the largest portion of a retirement package is the person with the most money, it could end up taking up a significant part of the income.
The money should be enough to cover the cost of the whole package and not fall below the amount needed to cover basic living expenses.
This is important because the retirement plan or retirement account should cover expenses that are more than the retirement income that’s given to them.
The amount of money given directly will depend on the retirere’s age and the type of pension.
The retirement plan will typically be the biggest part of a spouse’s retirement income, but the retirement accounts are the smallest portion of that retirement income.
When it comes to a community retirement, the amount given to someone is less important than the type and the amount the individual is contributing.
A spouse who is earning a low-income retirement may have to give up a lot of the savings they’ve made to get a portion, while someone with more money may be able to give more than he or she has to.
But the individual who’s receiving the biggest retirement contribution will be the one to get that amount, regardless of their income.
How To Choose a Gift: You’ll want to consider the following factors when picking a retirement contribution: The amount is generous.
Generally, a $4,000 annual contribution is considered generous, while a $1,000 per