Trading on Insider Information

by David Brown

Are you looking for insider trading information so you can be assured a nice profit? In the business world, insider information is data unavailable to the general public that can be used to trade stocks or bonds at just the right time. Here is some “insider information” about the Free Will Baptist Foundation that will allow anyone to make a good deal.

Did you know that charitable remainder unitrusts allow you to avoid capital gains taxes? And it is perfectly legal. You can use highly appreciated assets like stocks or bonds to fund a unitrust and completely avoid accumulated capital gains. It is also possible to avoid capital gains taxes on highly depreciated assets like rental property. Depreciating rental property is a great way to reduce taxes. Unfortunately, when selling the property you have to recapture that depreciation at a tax rate of 28%. By placing rental property in a unitrust, you can avoid capital gains taxes caused by depreciation.

Consider another piece of insider information: it is possible to get tax-free income. A charitable gift annuity will allow you to receive a large portion of your income tax free. A 70-year-old couple can enjoy a guaranteed fixed rate income of 5.4%, or $540 a year (based on a $10,000 investment), and 78% would be tax-free. This means the couple would receive $540 but would pay taxes only on $115.

Of course, both examples are contingent on a planned gift that results in a partial charitable deduction. They would also have peace of mind in knowing the remainder of their planned gift will go to the ministry of their choice when they go to their reward in Heaven.

Here’s another bit of insider information: you can get an interest rate better than five-year CD rates and still enjoy access to your money. Money Management Trusts (MMT) available through the Foundation offer an interest rate of 2.75%, and you can make deposits or withdrawals from them whenever you choose. The best five-year CD rate in the country (at least when this article was written) is 2%. You can’t make additional deposits to a CD, and you can’t withdraw from it until the end of the five-year period.

Another news flash of insider information: endowments managed by the Foundation contribute significant sums to Free Will Baptist ministries every year. You no longer have to wonder if it is possible to endow your favorite Free Will Baptist ministry, because the answer is yes. You can endow any ministry through the Foundation.

The last tidbit of insider information is that Free Will Baptist Foundation offers free Wills Guides. Everyone should have a will, and we all need to tithe on the assets from our estates. These wills guides have been made available to many Free Will Baptist ministries as well.

In reality, all this “insider information” has been readily available from the Foundation for years. Unfortunately, we have not been able to communicate it effectively. We have been the “stealth” department, flying under most Free Will Baptists’ radar. We want you to know we are here, ready to serve, through a planned gift, endowment, Wills Guide, or money management trust. Please contact our office for more information.

About the Writer: David Brown became director of the Free Will Baptist Foundation in 2007. He is a 1979 graduate of Free Will Baptist College and received his Certification in Accounting from Tennessee State University. He is a Certified Public Accountant.