Gifting Phase

DEFINITION of 'Gifting Phase'

The stage in an investor's life where he or she seeks to use his or her accumulated wealth to provide for the current and future needs of family and friends, as well as to leave a mark on the world by funding charities of his or her choice through philanthropy. The investor's concerns during this phase shift from matters of capital accumulation to estate planning and tax minimization.

BREAKING DOWN 'Gifting Phase'

While investing is indeed all about making money, the gifting phase of a successful investor's life can be the most personally fulfilling reward for a commitment to long-term investing. Many prominent investors who were aggressive capitalists in their heyday have gone on to be great philanthropists: for example, the infamous Michael Milken, who made a fortune in the junk bond market in the 1980s but now donates large amounts of money to support prostate cancer research.

RELATED TERMS
  1. Accumulation Plan

    1. A general financial strategy in which an investor attempts ...
  2. Michael Milken

    As an executive at investment bank Drexel Burnham Lambert Inc. ...
  3. Charitable Gift Life Insurance

    A method of contributing to charity by taking out life insurance ...
  4. Accumulation Phase

    1. A period of time when an annuity investor is in the early ...
  5. Accumulated Fund

    The capital fund of a nonprofit organization. Money is directed ...
  6. Price Target

    1. A projected price level as stated by an investment analyst ...
Related Articles
  1. Professionals

    Determining A Client's Risk Tolerance

    Determining A Client's Risk Tolerance
  2. Bonds & Fixed Income

    Bonds: They're Not Just For Seniors

    In this article, we'll show you how investors at any stage of life can keep these fixed-income investments. Keep Reading.
  3. Philanthropy

    How Billionaires Around the Globe Give Back

    This list of foreign billionaire philanthropists is robust. Here's a list of rich entrepreneurs around the globe who have given back in really big ways.
  4. Active Trading Fundamentals

    Dow Theory: The Three Phases Of Primary Trends

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comSince the most vital trend to understand is the primary trend, this leads into the third tenet of Dow theory, which states ...
  5. Consolidating Your Retirement Money – Evaluate Performance

    Now that you know where you're going, it's time to see how well what you have matches your investment profile and objective(s).
  6. Home & Auto

    Using Life Insurance To Make Charitable Donations

    Your life insurance policy can be a great tool for charitable giving. Find out how.
  7. Evaluate the Performance of Your Investments

    Congratulations, you’re halfway done! Now that you know what you have along with some idea of how to accomplish your goals, it’s time to go over your portfolio to see whether it fits ...
  8. Investing

    Family Philanthropy: Developing a Cohesive Strategy

    Devising a cohesive family philanthropy strategy requires proper goal alignment, planning, management, procedural rules and constant evaluation.
  9. Entrepreneurship

    Comparing Impact Investing & Venture Philanthropy

    Impact investing and venture philanthropy might be similar, but there are differences and one is more popular than the other right now.
  10. Retirement

    Gifting Your Retirement Assets To Charity

    There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.
RELATED FAQS
  1. What happens during the consolidation phase of an investor's life cycle?

    Unlike the accumulation phase – where emphasis is placed on growing wealth – the consolidation phase is a balance between ... Read Answer >>
  2. What happens during the spending/gifting phase of an investor's life cycle?

    The final phase(s) in an investor's life cycle is the spending/gifting phase, during which wealth accumulated over many years ... Read Answer >>
  3. Who does Warren Buffett plan to bequeath his estate to?

    Find out how much Warren Buffett is leaving for his heirs and how he wants the funds invested after his death. Learn about ... Read Answer >>
  4. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, ... Read Answer >>
  5. Janet Spears is planning to retire in 7 years and plans to start saving $15,000 ...

    The correct answer is: a) Step 1: How much will she have accumulated her wealth by the time she retires Read Answer >>
  6. What type of funding options are available to a private company?

    Understand how private companies can obtain financing for startup, growth or expansion projects, and learn how this differs ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center