Thanks for sharing your experience with Vanguard! That aligns with anecdotes I’ve heard about Vanguard’s brokerage service.
Are there any simple ways of making investments in these accounts that offer 2x leverage or more? Are there things here that you’d recommend?
I just published something about DAF investing strategies: https://mdickens.me/2021/04/06/investing_strategies_DAF/ In this section, I talk about leveraged ETFs. I believe the only way to invest with leverage in a DAF is through a leveraged ETF or mutual fund, although I’ve heard conflicting things about what the actual legal requirements are. In general, I don’t think leveraged ETFs are good investments.
Do you have an intuition around when one should make a Donor-Advised Fund?
If you want to use leverage, probably never. (Or just use it to convert stock into cash for donations, as akrolsmir described.) Otherwise, you want to have at least $10,000 or so, otherwise the minimum fee will eat too large a % of your assets each year. (Schwab and Fidelity both have a $100 minimum fee.)
How easy is it for others to invest in one’s Donor-Advised Fund?
It’s definitely possible. I personally don’t have my own DAF, I use my parents’ DAF. I’m a full authorized user on the account, which means I had to connect my Fidelity account to the DAF. If you don’t care about managing anything and just want to donate to the DAF, I would think that should be pretty easy, but I haven’t tried it. I think it should be as simple as writing a check to Fidelity Charitable with a note that the money is for that particular DAF.
Thanks for sharing your experience with Vanguard! That aligns with anecdotes I’ve heard about Vanguard’s brokerage service.
I just published something about DAF investing strategies: https://mdickens.me/2021/04/06/investing_strategies_DAF/ In this section, I talk about leveraged ETFs. I believe the only way to invest with leverage in a DAF is through a leveraged ETF or mutual fund, although I’ve heard conflicting things about what the actual legal requirements are. In general, I don’t think leveraged ETFs are good investments.
If you want to use leverage, probably never. (Or just use it to convert stock into cash for donations, as akrolsmir described.) Otherwise, you want to have at least $10,000 or so, otherwise the minimum fee will eat too large a % of your assets each year. (Schwab and Fidelity both have a $100 minimum fee.)
It’s definitely possible. I personally don’t have my own DAF, I use my parents’ DAF. I’m a full authorized user on the account, which means I had to connect my Fidelity account to the DAF. If you don’t care about managing anything and just want to donate to the DAF, I would think that should be pretty easy, but I haven’t tried it. I think it should be as simple as writing a check to Fidelity Charitable with a note that the money is for that particular DAF.