Are You Better Off Gifting Cash or Appreciated Stock?

The answer depends on the recipient’s tax bracket. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=51895&elqTrackId=7a165fd6d9ae43fe911473be9468d029&elq=abb5296d63e5436c95ef930939d44f12&elqaid=51895&elqat=1&elqCampaignId=26066) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] A few months back [I wrote about a financial gift that my parents made to my husband and me](. My point was that gifting during your own lifetime, while you’re around to see the benefits of that gift in action, can beat leaving assets for your heirs to inherit after you die. As the saying goes, it’s better to give with a warm hand than a cold one. My parents gave us cash to help with a home down payment, but could the gift have been a win-win if they had gifted us appreciated securities instead? Possibly, though the answer isn’t as straightforward, taxwise, as is the case when gifting appreciated assets to charity. [In my latest column]( I wrote about when it might be advantageous to gift appreciated assets—as well as an odd strategy called “upstream giving.” Speaking of taxes, we’re just a couple of short months away from the tax-filing deadline. My colleague Carole Hodorowicz has amalgamated a lot of useful tax content in this [Tax Guide]( which you can bookmark and refer to as needed during tax season. One of my favorite tax resources, hands-down, is Ed Slott. Ed is perennially enthusiastic about Roth IRAs, but especially given that the expiration of the Tax Cuts and Jobs Act will usher in higher taxes, barring congressional action. Ed and I discussed that thesis in [this video]( and keep an eye out for more videos from Ed and me in the months ahead. On the investing front, [assets in index funds recently eclipsed the amount of money in actively managed products](. John Rekenthaler discussed the implications for investors, the markets, and the financial-services industry in [this wonderful article](. Finally, one of the treats of my career has been getting to know and work with Consuelo Mack over the years. Consuelo was a longtime CNBC anchor before starting her own show, WealthTrack, roughly two decades ago (WealthTrack appears on PBS affiliates throughout the country). She and I recently taped two episodes of the show, [one on the implications of higher yields for retirement planning]( and [the other on decluttering your portfolio](. I hope that you enjoy them! With warm regards, Christine Benz [We Need to Talk About Your Retirement ‘Spending’]( Big inheritances can be a sign of underconsumption and suboptimal planning. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Should You Gift Your Appreciated Assets During Your Lifetime?]( The strategy can yield a tax benefit, but it isn’t a sure thing. [Read More]( [Ed Slott: Roth Conversions Especially Attractive Before 2026]( The tax- and retirement-planning expert on why a series of phased conversions could make sense if higher tax rates are a possibility. [Read More]( [Morningstar’s Tax Guide and IRA Resources]( Here are the answers to some common questions about taxes and IRAs. [Read More]( [Index Funds Have Officially Won]( Now what? [Read More]( [It’s Official: Passive Funds Overtake Active Funds]( But the recovery of U.S. fund flows was weak in 2023. [Read More]( [Roger Young: The Importance of Visualizing Retirement]( A T. Rowe Price thought leader discusses key financial and nonfinancial considerations for people embarking on retirement. [Read More]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602