Cobbs, Allen and Hall's RiskWISE Academy11/08/2011

Disposable, Discretionary Dilemma

Disposable Income

DI = Gross Income – Personal Taxesie. Consumption + Saving= Disposable Income

Discretionary Income

Gross income - Taxes - Necessities=Discretionary Incomeie. AGI – Lifestyle – Dependents=Discretionary Income

Capital v Cash

Season of Margin (Ages 47-67)

The Lost Generation

Discretionary Income Dilemma

1996 - First Baby Boomer turns 472011 - First Baby Boomer retires at age 65 2026 - Last Baby Boomer retires at age 65

Summary of SSA’s 2011 Annual ReportChart D—OASI, DI, and HI Trust Fund Ratios(Assets as a percentage of annual cost)http://www.ssa.gov/OACT/TRSUM/index.html

Societal Shift

gainfully employed v. greedfully entitled

Pew Research CenterMonday, November 7, 2011

So What’s the Solution?

Transfer of a Lifetime

Table 1: Boston College FWP Wealth Transfer (Lower Level Estimates)

Table 2: Boston College FWP Wealth Transfer (Upper Level Estimates)

Reference: http://www.bc.edu/content/dam/files/research_sites/cwp/pdf/m_m.pdfSource: Boston College The Center on Wealth and Philanthropy (CWP)

Public Se-curities

Private Stock

Real Estate Bonds Cash Equivalent

$1M : $2M

16.8 8.5 18.1 8.8 7.5

$5M : $10M

23.6 15.8 15.1 12.4 4.1

$10M+ 26.4 28.3 11 12.4 2.3

2.57.5

12.517.522.527.5

Millionaires' Five Largest Asset Classes

Perc

en

tag

e o

f N

et

wo

rth

Source: Estimates from MRI database and IRS data.Assets excluded: Equity in personal residence(s); corporate bonds; foreign bonds,; net value of life insurance; savings bonds; equity in motor vehicles; collectibles; and personal property.

Capital Allocation

Cash v. Capital Cultivation

Mission

Human

Capacity

Financial

Edifying Short-term Support…Insuring Long-term

Sustainability…

SHORT-TERM DILEMMA:CULTIVATION OF HUMAN ENDOWMENT

2 Responsibilities of Advancement:

1,000 Donors 10%/yr=1,100 Donor Households

and/or1,000 Donors @$1,100/yr=$1,100,000 Support

Attrition Rate @20%/yr

1,000 Donors 20%/yr=800 Donors

and/or$1,000,000 Support=$800,000

LONG-TERM SOLUTION:CAPITALIZATION OF HUMAN ENDOWMENT

2 Opportunities for Advancement:

Gifts of Capital

and/or

Gifts of Estates

$10,000,000 Capital @10%=$1,000,000

Institution Individual

Addressing the Market Place

Institution

Giver

Fundraising

Qualified

Limited

Wants

Individual

Investor

Service

Everyone

Complete

Win-Win

Agenda

Approach

Audience

Access

Attitude

Ask

Conversation for All Seasons

“Where the ‘odds’ are with you.”

Protection

Problems

Property

Posterity

Providence

Perceived Needs

Strategic Alliances

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Reference Source: http://www.linkedin.com/in/jackeyer

Jack Eyer, Gift & Estate Design Specialistjack@givingventures.org(205) 202-0205 office(205) 222-5270 mobile

http://www.linkedin.com/in/jackeyer