The best times to pay taxes are never or later. A line told to me by my estate planning attorney and one I often repeat. The truth is taxes are an inevitable part of life. You will owe them, I will owe them. I remember sitting down in 2009 with my mom excited to show me her custom Excel document. You see she had neatly broken down my pre-tax signing bonus, spending assumptions, and tax bill. My eyes immediately jumped to the tax bill. “I am going to owe that much”. Since then, I have explored, been pitched, and researched nearly every tax strategy out there. My conclusion is this ~ many of the best tax strategies are not the complex one-offs, they are the ones you can implement. First, understand that taxes are a lifetime game. The goal is to pay the lowest amount over your lifetime not just one single year. Second, understand that taxes are unique to you. The way you earn money, the things you care about, and how you choose to invest will all affect your tax bill. Third, understand that there is a lot of misinformation out there when it comes to tax planning. My goal is to bring you only strategies I have personally done or researched deeply and implemented with clients. 5 Tax Strategies I want to break down five strategies I use to help lower my tax bill. The breakdown of each will be as follows. The Strategy How to use it How I use it Why I use it The tax benefits of using it Sound fair? Great here we go: 1) Retirement Accounts Perhaps the most straightforward strategy I use. Retirement accounts are simple in theory, the IRS provides you either a future year tax incentive (deferral/tax-free growth) and/or a current year tax incentive (deduction) to contribute. I make 401(k) contributions up to my company match which is 5%. I do not max out this account simply because I want increased flexibility with my investments. I also utilize a backdoor Roth IRA strategy each year. This allows me to contribute $7,000 in 2024. The last “retirement” strategy I use is a Health Savings Account or HSA. While this money is earmarked for future health care expenses I group it into this bucket. My contribution for 2024 is the family maximum, $8,300. I use my retirement accounts for tax benefits received. I do think they can be good to build the muscle of saving for those starting their wealth-building journey as well. Overall, these contributions won’t save me more than a few thousand dollars in any given year. Yet combined with decades to invest that money the future tax savings add up quickly. 2) Tax Efficient Investing Everyone thinks of saving on taxes as they are earning money from their career but I am fascinated by saving taxes on the money I am earning from my investments. The idea is simple, compound my investments and pay as little tax as possible along the way. The biggest way I do this is through investing in exchange-traded funds or ETFs. These are baskets of stocks similar to mutual funds with one key difference. They rarely pay capital gain distributions (like mutual funds) at the end of the year. This means that all of my gains are tax-deferred until I choose to sell the fund. The only tax owed (assuming I don’t sell) is from the dividends the funds pay. While I also incorporate more nuanced strategies specific to me, ETFs are a great starting point to understand. I use these because the large majority of my assets are in taxable accounts. Remember, I like the flexibility of investing outside of retirement accounts plus retirement accounts have strict yearly limits. My goal is to reduce the tax drag on my portfolio and increase my after-tax rate of return. Here is an example of two portfolios: The ETF portfolio has no capital gain distributions. The mutual fund portfolio has capital gain distributions. *This is hypothetical and meant to illustrate the tax drag that can occur. 3) Tax Loss Harvesting Tax loss harvesting is selling a position that has gone down in value to capture the loss. In conjunction, you immediately rebuy an equivalent position. This allows you to lock in the loss for tax purposes but stay invested in the market. I use this in my portfolio when we see pullbacks in the market. If I have a position or a fund that is at a loss, I will sell it lock in that loss, and buy an equivalent position. Doing this over time has created a tax asset, the loss I created then can be used in both current and future years. I use $3,000 of losses to offset current year income and often carry forward additional losses to future years. As I continue to grow my portfolio and my life changes there will inevitably be things I want to use my investment portfolio for. By having a tax loss in the holster, I can reduce a future tax bill by using this tax asset to offset the gains when I do sell investments. 4) Donating to Charity Donating to charity is about the heart, not the tax benefit. With that said, I have yet to meet anyone who would prefer less money to go to their favorite charity and more money to go to the IRS. That is why one of my favorite strategies is utilizing a Donor Advised Fund (DAF). A DAF is an account that allows you to supercharge your giving. Instead of giving directly to a charity you can gift cash or stock (preferred) to it. You then can invest the money inside of the DAF and grant the money to charity over your desired period. I use this to maximize my gifting in years I am in the highest tax bracket. I do this by bunching gifts together. An example is bunching five years of giving into one year to maximize the tax benefit. In addition, I am always giving away appreciated securities or stocks. This allows me to avoid capital gains on those positions while taking the full amount as a tax deduction. A more nuanced but additional reason is it allows me to itemize my deductions instead of taking the standard deduction. A DAF allows me to give more away, get a bigger tax deduction, and strategically use my appreciated investments. It is a win, win, win. If you combine my giving in the highest tax bracket plus my appreciated investments, the tax savings add up. That means that not only do I receive a roughly 37% deduction, but I also avoid a capital gains tax on my appreciated investments. Here is a visual of how it works: 5) Tax Election It is important to understand an LLC is not a tax election. An LLC is an entity and then you must decide how you want your LLC to be taxed. The four common tax elections are sole proprietorships, partnerships, S-Corps, and C-Corps. A few questions to consider when determining your tax election: Do you plan to raise capital? Do you plan to sell the business? How many employees do you or will you have? Do you want to have increased flexibility in taking money out? Will you earn more from the business than a reasonable salary for your job function? The answer to the above questions combined with your long-term plan will dictate which tax election provides the biggest benefit. When we first started Moment Private Wealth we elected to be taxed as a partnership. This provided us with increased flexibility for salaries and distributions in the early days. As we have grown and brought on additional team members, we have shifted to an S Corp election. The S Corp provides less flexibility but decreases our tax bill based on how we pull money out of the business. This is something every business owner needs to have a thesis on. Why are you structured the way you are and should it continue to be that way moving forward? Your goals, business, desired optionality and cash flow will all play a role in this decision. The right tax election can save hundreds of thousands in lifetime taxes (if not more), spend time figuring out your optimal election. ------------------------------------------------------------------------------------------------------------------------------ Good tax planning starts with good real-life planning. The above strategies are ones I focus on every year. I focus on them because they help me pay less in taxes and get closer to my financial goals. Remember the two best times to pay taxes are never or later. Yet as my mom told me, “You always want to be paying taxes, it means you are making money.” Earn income, plan around it, and understand how to lower your lifetime tax bill. If you are a pro athlete or entrepreneur who is interested in a free review of your estate plan, schedule a call and talk with a Moment founder. Get in Touch With An Advisor *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

In 2010 George Steinbrenner, the owner of the New York Yankees, avoided paying $500,000,000 in taxes. Believe it or not, the government has a tax that families have to pay at death. Steinbrenner had accumulated over a billion dollars in net worth which meant he was going to owe a significant tax bill at death. As fortunate timing would have it, in 2010 George W. Bush passed an act that eliminated estate taxes. It was only for the year 2010. This is the year that Mr. Steinbrenner passed away. For the Steinbrenner heirs, this meant an extra $500,000,000. The Steinbrenner's spent thousands if not millions on estate planning, but their biggest win was simply due to a little luck. In this blog, I am going to break down what an estate plan is and the 5 core components. Follow these and you won't have to rely on getting lucky. What is an Estate Plan? Your estate plan is simple. It is a place where you can outline in advance your wishes. Who takes care of me? Where is your money going? What the money can be used for? Who takes care of my loved ones? Who is in charge of distributing my assets? These are only a few questions your estate plan can answer. Just like any good plan the best estate plans are done in advance. If you do not do it in advance you get the government's plan. This is what we call the probate process. This process exposes your information publicly and allows anyone to make a claim to your assets. Trust me you probably don't want the government's plan. Follow these steps to help better plan for the future. 5 Components of Your Core Estate Plan 1) Revocable Living Trust You may have heard of a trust before. I am going to help demystify it for you. A trust is simple. It is a written plan for your assets and wishes. For many adding beneficiaries to assets is step one and a trust is step two. A few reasons why I recommend a trust over just beneficiaries: If your beneficiary dies at the same time as you these assets will go into the probate process. Creditors can come after these funds once given outright to your beneficiary. You have no control over how your beneficiary uses these funds. A revocable living trust can fix many of your issues. The best part is with a revocable trust you can change it at any time. This is my number one idea for those looking to provide direction and protection to their assets. 2) Pour Over Will Now you know what happens to your property with a title let's talk about all the other stuff. These are all the items you own but don't have a title for. Wedding Ring Furniture Art The way a pour over will works is it instructs your estate to move or pour all of these assets into your trust. They will avoid probate and will be distributed based on the trust. Many people want to direct these items because of their monetary value or sentimental value. The pour over will allows you to do just that. 3) Power of Attorney Have you ever wondered what would happen if you couldn't make financial or healthcare decisions for yourself? Well, there are two options that you have. You get the government's plan. You get to decide in advance who is making these decisions. In the first scenario, a judge is going to appoint someone on your behalf to make these decisions. They can appoint who they deem fit. This could have huge implications depending on your net worth and situation. In the second scenario, you are able to outline exactly who you want to have this authority, when they get this authority, and exactly what they can and can't do. I am yet to meet someone who wants the government's plan. As we like to say at Moment, plan now or regret it later. 4) Guardianship I have three kids and I want to make sure they are protected if something happens to my wife and I. Proper planning involves guardianship planning for children. A well designed estate plan will dictate who, when, and how a guardian will be able to watch over your children. Within guardianship, there are a few components to consider. How can that guardian use your money? What schools would you like your child to attend? What area would you like your child to grow up in? It amazes me how many people care deeply for their kids, but haven't taken a few hours to get guardianship taken care of. 5) Estate Taxes Every decision you make in your financial life will have a tax consequence. Even your estate plan can have a tax consequence. The good news, if you are worth less than $13,610,000 in 2024 you are not not subject to estate taxes. If you aren't sure what your net worth will be let's look at a few components you should consider. Bank and Investment Accounts Death Benefit of Life Insurance Value of your Business Retirement Accounts Real Estate Assets If you add up all of these items and it is under $13,610,000 then you will avoid this tax. If you are over this amount you will be subject to estate taxes. These brackets get up to 40% almost immediately. Thankfully there are steps and solutions to avoid these taxes. The easiest way to increase the tax free portion of your estate is to get married. This alone can double your exemption to $27,220,000 through proper planning. At Moment, many of our clients are navigating impending estate taxes. We like to think about this planning as the second level of the house. Step one or the revocable trust is the foundation and everything we do is build on that. There is incredible nuance in planning done for families navigating estate taxes. To take your learning a step further, learn how gifting can be a powerful strategy to consider. If you are concerned about your potential estate tax bill, consider schedule a call to see how we can help. ------------------------------------------------------------------------------------------------------------------------------ We might not all own professional baseball teams and have a $500,000,000 dollar tax bill to avoid, but I can assure you that these 5 steps can help anyone in any situation. Remember, estate planning doesn't need to be scary. There are simple steps you can take today. Our job is to help guide you on your path to success. If you are a pro athlete or entrepreneur who is interested in a free review of your estate plan, schedule a call and talk with a Moment founder. Get in Touch With An Advisor *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

In 1996, Peter Thiel started PayPal.  To date, he arguably has the most famous implementation of a Roth IRA strategy.  That same year he placed 1.7 million shares of PayPal into his Roth IRA.  At the time the valuation of these shares was $1,700 which allowed him to place all the shares into this tax-sheltered vehicle.  We all know PayPal has grown to be worth billions. What you might not know is Thiel's investment has become a tax free compounding machine. This is a fun story to share around a campfire, but what does this mean for you? In this blog, we are going to break down what is a Roth IRA and 3 ways you can use one. What is a Roth IRA? A Roth IRA is an individual retirement account. The way retirement accounts work is the government provides you with a benefit to incentivize you to save for retirement. A Roth IRA provides a future year tax benefit.  When you contribute to a Roth IRA you do not get a tax benefit today but any money in this account grows tax free and gets distributed tax free.  Retirement accounts will provide tax benefits but they also have regulations on when you can use the money. In a Roth IRA, you can pull out contributions at any time but the growth of your investments is subject to a 10% penalty should you use the funds before 59.5. 3 Ways to Use a Roth IRA 1) Making an Annual Roth IRA Contribution Before we talk complex let's keep it simple. The first way and simplest way to contribute to a Roth IRA is to do it directly. Every year you are going to have the option to contribute to a Roth IRA.  Let's break down the rules and regulations in order for you to be able to make this contribution. Earned Income – In order to contribute to a Roth IRA you have to have earned income. This is income you make from performing a job or active income. This CANNOT be portfolio income. Income Limit – You will also need to make under $230,000 as a married couple to make a full Roth IRA contribution or under $146,000 as a single tax filer. If you make more than this, we have a plan for you to contribute later in this blog. Funding Limit – Depending on your age you will be able to contribute different amounts of money. If you are under 50 you can contribute $7,000 to your Roth IRA and if you are over 50 you can contribute $8,000 annually.  These numbers are for the 2024 calendar year. If you are married and make under $230,000 as a couple this is the simplest way to start getting money into a Roth IRA and growing it tax free. 2) Backdoor Roth IRA Contribution For those of you reading this that are over the income limits listed above this section is for you.  One strategy we utilize on regularly is a backdoor Roth IRA strategy. Let's break down who is eligible and how it works. Income Limit – No income limit on making this contribution. Pro Rata Rule – This is only available to those who DO NOT have any assets in an IRA. If you have assets in an IRA you will be subject to the pro rata rule. This rule will stop you from being able to do a backdoor Roth IRA contribution.  The two ways to get around this are to convert your IRA to a Roth IRA or roll your IRA assets into your 401(K).  This is a decision you should make in conjunction with your tax professional and financial advisor. Funding Limit – This funding limit is the same on a backdoor Roth IRA. $7,000 annual contribution if you are under 50 and $8,000 annual contribution if you are over 50. The Mechanics – To implement this strategy you will need to follow these steps. 1.      Put $7,000 into your IRA. 2.     Transfer the $7,000 from your IRA to your Roth IRA. 3.      Invest your Roth IRA and grow your assets tax free. This is the most popular strategy we see utilized for families that are making significant income.  Over a decade, a couple could get six figures into these tax free vehicles. With steady growth, this could turn into millions of dollars in tax free money. 3) The Peter Thiel Method This is the most complex way to potentially maximize your Roth IRA.  Before you tell me this is what you want to do, know that the conditions have to be right. When you are looking at copying what Thiel did you need to be able to say yes to one of these statements below. You have stock in a company that is worth less than the annual contribution limit ($7,000) for a Roth IRA. Remember Thiel’s PayPal stock was only worth $1,700 at the time he contributed it to his Roth IRA. This is unique and typically only applies in venture capital scenarios. You have money in a Roth IRA that I want to invest in high growth private companies. If you didn’t start the company but want to invest tax free you will need funds in a Roth IRA. If you aren’t sure how to do this revert back to reading steps 1 and 2 above. If you can answer yes to one or both of these scenarios you could potentially execute the holy grail of Roth IRAs. To implement these, we will need to get specialized legal, tax, and custodians in place. All things Moment Private Wealth can help you with. The reality is most of us will never use a Roth IRA in the way Thiel used it, but that doesn’t mean that the Roth IRA still can’t be a powerful tool. The reality is that steps 1 and 2 could still help you save millions in tax free money. If you are a pro athlete or entrepreneur who is interested in learning more about how a Roth IRA might fit into your financial plan, schedule a call and talk with a Moment founder. Get in Touch With An Advisor *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

As an athlete, one of the hardest things to do is to make money playing sports. Less than .05% of high school athletes will ever become professional athletes. Choosing a financial advisor for athletes should be easy but unfortunately, it is not. In this article, we will discuss how to choose a financial advisor for athletes. The things to consider, evaluate, and all-out avoid. The first step in evaluating a financial advisor is to understand what questions to ask. While a nice office, big boardrooms, and Fuji water are nice it does not move the needle for you in your career. What does move the needle is finding an advisor that has the necessary combination of competence, experience, and expertise. After all, you are in a situation that less than .05% of the population is in. What to consider, evaluate, and all-out avoid. 1. Who do you work with? Ask most financial advisors who they work with, and you will probably get a response like this: “We work with clients with over $1,000,000 in assets.” The problem with this is it only considers a small part of a client’s financial life. The amount of money someone has does not reflect the challenges that they face in their life. For athletes, managing money at a young age brings about hyper-specific challenges. It is one that few financial advisors have ever seen or dealt with. You want to ensure that your financial advisor works specifically with people like you. A more appropriate response to this question would be: “We serve as financial advisors for athletes, that is our specialty and what we do best.” Consider for a second if you were going in for an off-season procedure on an injury. Would you want a general doctor to be doing the surgery or would you want a specialist who only works on that particular injury? Choosing a financial advisor for an athlete should be viewed through the same lens. 2. What expertise should an athlete financial advisor have? As an athlete, you have a condensed earning window heightened by higher-than-normal earning power. This can be a great combination when executed properly. This formula executed incorrectly has led to the financial downfall of many athletes. The truth is the term “financial advisor” is one of the broadest in professional services. It takes very few qualifications to simply call yourself a financial advisor. This leads to many salesmen parading around as qualified experts. So how do you distinguish between an amateur and a professional? What qualifications does your team have that make you an expert? Real-World Experience: A financial advisor for athletes should be a combination of higher education and personal experiences. Remember, as a professional athlete you are in the less than .5% of the population that will make money playing your sport. For most financial advisors, it is a struggle to comprehend the rollercoaster that is professional sports. This includes the tactical strategies to benefit you as well as financial education. Advanced designations: The highest of these is the CFP, which stands for Certified Financial Planner. This is a combination of education, experience, and ethics. Every athlete should ensure their financial team incorporates a member with a CFP designation. 3. How will you help me build my team? Just like every athlete is a member of the team, your financial life should work the same way. A financial advisor for athletes should have the resources and network to help build the team of professionals. This team should be athlete-specific and world-class. The goal of having this team is to protect you from the unknown (insurance), reduce your lifetime tax bill (taxes), and help you plan for leaving a legacy (estate planning). Your team should consist of: Financial Advisor: Your point person for your family’s financial life. Accountant: The team member that will help you execute tax strategies specific to you that will lower your lifetime tax bill. Insurance Agent: As an athlete, you are an easy target. The goal is to protect what you have worked so hard to earn. Estate Planning Attorney: Athletes have an opportunity to create generational wealth for their families. The key is to build a plan to make that happen. This is the core four of your financial team. As an athlete, there are a lot of moving parts in your financial life, and it takes everyone on your team working together. 4. What areas do you cover? The days of a financial advisor simply helping you pick an investment portfolio is over (at least they should be). As an athlete, your advisor should be serving as the point person for your entire financial life. So, what does that entail? Cash Flow: As an athlete, you have direction around your routine, workouts, and preparation. Your finances need to have that same direction. As money is coming in you want to have a plan for spending, saving, and investing each dollar. Tax Planning: Taxes will be your single biggest expense as a professional athlete. Your financial advisor should be forward-looking to determine what tax strategies you can use to lower your lifetime tax liability. (There are a lot that are specific to professional athletes) Risk Management: Simply, how do you protect what you have worked so hard to earn? The most common forms of protection include proper home, auto, renters, and umbrella insurance policies. Estate Planning: Your financial advisor should coordinate and have core estate planning documents drawn up by an attorney. This provides direction for your assets and allows you to start building a legacy. Investments: As a professional athlete, you have the blessing of having a long runway to invest money. You want to ensure that your investments are diversified, tax efficient, and built to support your lifestyle. 5. Things to Avoid Conflicts of Interest – A financial advisor should be serving in a fiduciary copacity 100% of the time. Insurance First Firms – Many firms market as financial advisors but focus mainly on insurance products. Insurance has its place but it is insurance, not an investment. Shiny Object Syndrome – Your finances are personal; they should stay that way. Be aware of advisors parading around their client list. Soon they will be telling everyone they work with you. Layered Fee Structures – Financial advisor fees should be transparent. If you can’t understand how they are getting paid ask. Many financial firms have layered fees on top of what they market, meaning more fees for the end client. Choosing the right financial advisor for you is a combination between fit, feel, and firepower. A financial advisor for athletes needs to have competence, experience, and expertise in understanding your unique situation as an athlete. Remember, you are in the .05%, is your financial advisor? Get in Touch With An Advisor *The tax and estate planning information offered by Moment Private Wealth is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

A Donor Advised Fund (DAF) is a great tool to consider for those with extraordinary income. Today we will break down what a Donor Advised Fund is, who should consider a Donor Advised Fund, and what tax benefits you will receive. What is a Donor Advised Fund? You may have heard this term before, but wondered what it is. It is an investment account used for giving. When funding this type of investment account, you get special tax treatment on your assets today and in the future. You can fund a Donor Advised Fund with cash or investments. You will be able to shift assets from your personal name into your charitable bucket when funding a Donor Advised Fund. When you move your assets into a Donor Advised Fund, the IRS treats these assets as if you have given them away in that calendar year. Donor Advised Fund assets must be given to a qualified 501C(3). A 501C(3) is a code the IRS uses to designate an organization as a charity. You cannot pull these assets back and use them for your benefit. The benefit is that the IRS allows you to get special tax treatment on the assets you donate, the growth of your assets in the Donor Advised Fund, and a tax deduction today. Example: Bill decides to move $1,000,000 into his DAF from his brokerage account. Bill does this because he wants to get multiple tax benefits in the calendar year that he is funding his DAF. Once Bill moves his assets to the DAF, the assets no longer belong to him personally but to his DAF. Bill can give these assets to any qualified 501C(3). Bill is utilizing this because of the special tax treatment this account allows and to have control over his giving in case he wants to adjust the charities he supports in the future. Recap – What is a DAF fund? An investment account that you can utilize for giving. A way to get special tax treatment on your assets today. A way to get special tax treatment on your assets in the future. Who should consider using a Donor Advised Fund? The two common characteristics of people utilizing a DAF are those experiencing extraordinary income or looking to diversify out of a concentrated holding.. The key to determining the use of a DAF is timing. Example 1: Bill has Apple stock that he bought back on December 1st, 1991, for .60 cents per share. Bill has held his Apple stock until today when the stock is worth 151.60 cents. One of the primary reasons that Bill doesn’t want to sell his Apple stock is because he will incur capital gains taxes on his sale. These taxes are calculated by looking at the difference between what Bill paid for the stock and what it is worth today. In this example, he will pay 151 dollars in capital gains taxes per share. Bill has decided that he no longer wants to hold his Apple stock and is trying to figure out how to minimize his capital gains taxes. If Bill moves his Apple stock from his brokerage account into a DAF, he will pay zero dollars in taxes on his Apple stock. Yes, you heard that right, no tax liability. Example 2: Bob is a professional athlete and has one year remaining on his contract. He recognizes that this might be his last contract and may retire after this year. He wants to know if there is a way to reduce his tax liability in the last year of his contract. By donating cash or appreciated securities to a DAF, Bob can get a dollar-for-dollar deduction on his tax return. Doing this in the last year of Bob’s career may make sense because he will be in the 37% tax bracket. If he retires, his tax rate may be reduced significantly. Let’s assume his tax bracket post-playing career is the 12% tax bracket. In this example, the benefit of using a DAF today versus after his playing career is a 308% increase in value. When you are in the highest tax bracket you get the most bang for your buck. Recap – Who should consider a Donor Advised Fund? If you are trying to diversify assets on your balance sheet and get special tax treatment. If you are experiencing a year or period of extraordinary income and are looking to reduce taxes. What are the Tax Benefits of a Donor Advised Fund? When considering a donor-advised fund there are 3 primary tax benefits. The first benefit is that you get an immediate tax deduction on your taxes. The IRS will treat any contribution as a charitable contribution for tax purposes. The second benefit is that you can mitigate capital gains taxes on assets you contribute to a DAF to zero. In the example outlined, you can see that any appreciated asset you contribute will avoid capital gains tax. The last benefit is that the assets in your DAF can be invested and grow tax-free. Example: Joe is in the process of selling his company while mitigating his taxes and preserving his legacy. Joe is going to sell his company for $20,000,000 this year with the deal projected to close in August. This strategy will need to be implemented in the calendar year that the transaction happens. In a review of Joe’s balance sheet, he has several positions in his investment portfolio that have appreciated. Joe has the opportunity to gift shares of these appreciated securities to a DAF. When Joe does this, he will eliminate the capital gains taxes on these positions at the time of the gift. When the assets hit his DAF, he will receive a tax deduction of that amount. Remember, Joe now controls these funds and can give them away to any qualified 501c(3) over any period. Lastly, he may now invest these funds and they will grow tax-free. This is appealing to Joe, as he wants to create a legacy of giving over the course of his life. Tax Benefits Recap: You can receive an immediate tax deduction on your tax return. You can mitigate capital gains taxes to zero. The assets in your Donor Advised Fund will grow tax-free If you are a pro athlete or entrepreneur who is interested in learning more about how a Donor Advised Fund might fit into your financial plan, schedule a call and talk with a Moment founder. Get in Touch With An Advisor *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.