Thank you for the thoughtful answer! My parents are based in the US and their investments are all in index funds and ETFs. I had forgotten that index funds in DAFs aren’t subject to portfolio turnover capital gains taxes, which seems like that would be the reason it’s worth switching the appreciated stocks to DAFs.
I think my parents’ idea is that by having the money they expect to be able to donate in a DAF or other investment account instead of just giving it now, they protect themself from a horrible health shock or market crash by having the money available to withdraw. Their ideal situation would be “pay as little tax and management fees on their investments as possible, donate in the most taxed-advantage way possible, probably giving more and more as they got older and were more sure they won’t need a big safety net”
Given this as what they’re optimizing for, do you think biting the bullet on the ~$5k/year vanguard management fee is their best option?
Thank you for the thoughtful answer! My parents are based in the US and their investments are all in index funds and ETFs. I had forgotten that index funds in DAFs aren’t subject to portfolio turnover capital gains taxes, which seems like that would be the reason it’s worth switching the appreciated stocks to DAFs.
I think my parents’ idea is that by having the money they expect to be able to donate in a DAF or other investment account instead of just giving it now, they protect themself from a horrible health shock or market crash by having the money available to withdraw. Their ideal situation would be “pay as little tax and management fees on their investments as possible, donate in the most taxed-advantage way possible, probably giving more and more as they got older and were more sure they won’t need a big safety net”
Given this as what they’re optimizing for, do you think biting the bullet on the ~$5k/year vanguard management fee is their best option?