We are 65 and have used Donor Advised Funds for many years. Whenever equities really get ahead of themselves, we donate appreciated shares to our DAF in order to rebalance back to where our asset allocation should be. We also transfer over appreciated assets when our marginal tax brackets are unusually high for that year. The DAF has allowed us to become more familiar with our philanthropic goals, which in turn has made it easier to have a clearer picture of our estate plans.
One of us works for a company that matches 100% of up to $10,000 a year. So we make sure to donate at least $10,000 a year to causes we like. We also have no children and want to leave as much as possible to charity and are in the process of setting up Donor-advised funds.
Great Question! in his great book, “Die With Zero,” Bill Perkins discusses this in Chapter 5. Basically he espouses, “… giving with a warm heart vs.a cold hand” which is a sentiment I agree with whole heartedly.
As a new retiree, I am coming to grips with this presently. I have two adult children, 46 and 40. My married, 46 year old daughter has her Master’s Degree, is established in her mental health career, and is considering establishing her own individual practice. My 40 year old son is a veteran, college graduate, and has been willfully unemployed for 15-16 months, and is not looking for a job. His significant other is apparently paying all the bills and supporting them both.
I have been thinking about ways to “help my children” while I am alive, but I am faced with a dilemma. While I have no doubt my daughter would benefit from a gift of cash, should she decide to go out on her own, and I would fully support her decision to do so, with appropriate planning, giving my son any sgnificant cash gift would be “enabling him” to continue in a lifestyle of which I greatly disapprove.
I have offered to assist him in getting additional career education, in a skill or trade. I have offered to match his salary or wages from any job he takes, for 12 months, to motivate him to find a job and become a productive citizen. He remains content to sit at home, playing video games and hanging out on Facebook all day.
Over the past 10 years, I have given my children $10-$15K in cash gifts, (not including birthdays and Christmas) and my son two different cars, worth $15K-$18K each.
As to charitable giving, I have used QCDs in lieu of RMDs for the past three years. Since I am now retired (January, 2024) I have decided to reduce my charitable giving to 10% of my Social Security income, or $7,200 a year, increasing as my SS Benefits increase, over time. Previously I was giving my entire RMD of $12-$14K to our group of charities.
If my wife and I live to 88-92 (I am 4 years older than my bride) we will be leaving an estate of $2-8M, according to our financial planning software. It will be divided between our two children, assuming they outlive us, as hopefully they will. Neither of my children have given us grandchildren, so should they predecease us, it will all go to charity.
Only time will tell whether I give either child a significant amount ($50K+) but I am open to considering it.
This is Chris. My spouse and I have practiced the kind of giving Don talked about for most of our married lives. We found through the years that we could never out give God and we always had resources for what we needed. I would encourage any of the forum members to practice this if you don’t. I look back now and wonder how we were able to pay our bills, but we always did.
As far as our children, it was important to us to be able to see that they got an education. When they bought their first cars and homes, we gave monetary gifts for these, they were modest, but enough to help. We hope to be able to give them a modest sum on a more regular basis while we are alive. We are new retirees, so now is not the time, but it is something we are working towards if we can.
We are 65 and have used Donor Advised Funds for many years. Whenever equities really get ahead of themselves, we donate appreciated shares to our DAF in order to rebalance back to where our asset allocation should be. We also transfer over appreciated assets when our marginal tax brackets are unusually high for that year. The DAF has allowed us to become more familiar with our philanthropic goals, which in turn has made it easier to have a clearer picture of our estate plans.
One of us works for a company that matches 100% of up to $10,000 a year. So we make sure to donate at least $10,000 a year to causes we like. We also have no children and want to leave as much as possible to charity and are in the process of setting up Donor-advised funds.
This is Chris. My spouse and I have practiced the kind of giving Don talked about for most of our married lives. We found through the years that we could never out give God and we always had resources for what we needed. I would encourage any of the forum members to practice this if you don’t. I look back now and wonder how we were able to pay our bills, but we always did.
As far as our children, it was important to us to be able to see that they got an education. When they bought their first cars and homes, we gave monetary gifts for these, they were modest, but enough to help. We hope to be able to give them a modest sum on a more regular basis while we are alive. We are new retirees, so now is not the time, but it is something we are working towards if we can.