The same generation that sang along with Elvis, the Beach Boys, and the Beatles will be singing a different tune as they pay taxes on trillions in 401(k) and IRA required minimum distributions (RMD) this year.
In January, Edward Shane, managing director at Bank of New York Mellon, told the Wall Street Journal that he estimates boomers have roughly $10 trillion stashed away in tax-deferred savings accounts. As the first generation with 401(k)s, boomers are in a unique position to call their own tune as they decide what to do with that money. How can charities join the chorus and benefit from this potential windfall?
HBO's recent documentary Becoming Warren Buffett highlighted the homespun billionaire's pledge to give away the bulk of his wealth during his lifetime. Buffett is setting a new standard for philanthropy and — more importantly — is encouraging others to do the same. Not everyone is Warren Buffett, of course, but we can all learn from his philosophy of giving.
Boomers can make "giving while living" the norm
My parents, who are among the oldest of the boomer generation (born between 1946 and 1964), turned 70 last year. According to Pew Research, they are just two in a wave of 74.9 million boomers who will be reaching that milestone over the next decade and a half. Though only second in size (behind the millennials), the boomer generation is the wealthiest on record. That puts them in a position to give more than any previous generation.