There was another discussion about this on the forum a couple of years ago: https://forum.effectivealtruism.org/posts/Ebjm8rNFP4mGEjtFD/is-the-community-short-of-software-engineers-after-all
To automatically invest money each paycheck so that you don’t have to remember, mutual funds are another option besides ETFs (it’s not always possible to automatically invest in an ETF). Mutual funds have higher account minimum balances, though.
Interesting that the Long Term Future Fund is thought of as the most cost effective fund, even though the cause area is considered one of the least funding constrained. Sounds like there are still some pretty amazing opportunities for donations in that area!
In the linked Summary of Evidence document, in the section “Farmed animal vs. wild animals vs. general antispeciesism focus”, some of the rankings in the grid do not match the explanations below. For example, under Scale, the grid has Farmed animal focus as rank 1, but the explanation below has General antispeciesism as rank 1.
How much more helpful would it be to take the full survey vs the abridged one, for those who have taken the survey in prior years? I’m willing to take the full survey if it’s helpful.
Any word on the global health budget decisions?
One argument for saving more is that it could allow you to have a higher risk tolerance, since you could afford to lose some of the money. If you planned to donate any excess savings after some time, this could increase the expected value of your donations. I wrote about this here: http://effective-altruism.com/ea/rz/increasing_risk_tolerance_by_growing_your/
Let me know if you have any questions about this.
Thanks, I’ve written letters to my senators.
One consideration is that you should have enough saved to live on in case you temporarily stop working. Here is 80,000 Hours’ view on this: https://80000hours.org/2015/11/why-everyone-even-our-readers-should-save-enough-to-live-for-6-24-months/
It looks like 2 posts that were created while the bug was occurring are not showing up on the main page: “Donor coordination under simplifying assumptions” and “What does the election of President Trump mean for EA?”
If you waited until Jan 2017, would you ask about both 2015 and 2016 donations?
The section “Where does the money go?” says it goes to AMF, but it says the charity treats parasitic worms.
I had to click on View More under Add a section to your profile, and then a tile appeared called Causes you care about. I checked the Other checkbox and typed effective altruism.
If you donate the stock directly to a charity without selling it first, you don’t pay taxes on long-term gains. In your example, if you donate $100 of stocks and reinvest the $100 in cash, then you don’t pay taxes on the $25 capital gain. When you sell the $125 in two years, you pay taxes on a long-term capital gain of $25, compared to the gain of $50 if you donated the $100 in cash instead.
Here’s an article that describes this in more detail: http://www.fivecentnickel.com/2010/04/30/reset-your-investment-cost-basis-with-charitable-donations/ It also mentions the wash sale rule, which might be the law that you were thinking of. That rule only applies if you sell assets at a loss, so it wouldn’t come into play here.
You’re right that you could end up paying more in taxes if you sold the stocks less than a year after reinvesting. Another caveat is that you can only deduct donations of stock up to 30% of adjusted gross income, unlike 50% for cash donations.
I have a couple questions about donating stock to charity in the U.S. Particularly I’m wondering about the case where someone has cash available to make a donation, but they want to instead donate an equivalent amount of appreciated stock and invest the cash in the same stock. This would decrease the cost basis of their stock, reducing the amount of tax owed when selling shares of the stock in the future.
When is the best time to invest the cash: as you receive the money, right before you donate, or after any restricted period after you donate (some funds impose a waiting period to buy back the stock if you have recently sold shares)?
If the stock only has a small long-term capital gain, is there any advantage to donating cash this year and waiting to donate stock until the gain has increased?
Also see this summary page on giving now vs. later: http://www.effective-altruism.com/ea/4e/giving_now_vs_later_a_summary/
This was actually taken into account in the article I linked to. Using their definition of a moderate-risk portfolio, looking at historical data it is unlikely that the account would drop below $20,000.