Can You Spare a Dime for Poor Old Chuck Schwab?


Donor Advised Funds are a nifty way for someone else to donate your tax dollars to Fidelity, Schwab, Vanguard, et al.  A donor contributes to a DAF. The administrator scoops some money off the top. Where does that fee come from? From the income tax savings realized by the donor. Because they pay less in taxes, you will eventually have to pay more., It wouldn’t be such a scam if the DAF had to pay out all the contribution to a charity within a year or two. But the money just sits there year after year, and Fidelity, Schwab, Vanguard, et. al. turn out to be the “charities”.

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