Tax-Free Gifting

Tax-free gifting, especially when those gifts are invested, can help you plan for the long-term future of the people you care about, as well as your own financial situation.

Under current IRS rules, you can gift up to $14,000 annually without tax consequences. You can give to anyone you choose, such as:

  • Children
  • Grandchildren
  • Nieces or nephews
  • Friends

Gifting has merit for many reasons:

  • Lessen your total estate value to decrease the estate taxes paid by your heirs
  • Fund a loved one’s education
  • Take advantage of potential exponential investment growth through compound interest
  • Feel secure that your loved ones’ needs are taken care of

How Gifts Can Grow Through Investing

U.S. stocks historically have delivered a compounded annual return of 8%.* Using the Rule of 72, a single one-time maximum gift of $14,000 would double in 9 years to nearly $28,000.

Hypothetical One-Time Gift Growth**
YearBalance ($)
014,000
927,986
1855,944
27111,833

Even a gift of less than the maximum has the potential for significant growth. A newborn could accumulate $94,000 by age 27 if he or she were annually gifted $1,000 at an 8% return.

Hypothetical Annual $1,000 Gift Growth**
YearBalance ($)
01,000
913,487
1840,446
2794,339

Who to Contact with Questions

Contact the Shareholder Services Team at 800-432-7856, or send an email. The Team is available 8 a.m. to 7 p.m. CT, Monday to Friday.

©2017 Heartland Advisors | 789 N. Water Street, Suite 500, Milwaukee, WI 53202 | Business Office: 414-347-7777 | Financial Professionals: 888-505-5180 | Individual Investors: 800-432-7856

*Source: Political Calculations, “The S&P 500 at Your Fingertips,” 10/31/1986 to 10/31/2016
**Assumes 8% as hypothetical rate of return

The Rule of 72 is a mathematical concept and is not illustrative of any Heartland investment. The examples generated are hypothetical and are for illustrative purposes only. It does not guarantee or predict how an investment will perform. It is an approximation of the effect of given rates of return and assumes a long-term investment horizon of greater than 20 years. It is important to keep in mind that most investments, including mutual funds, do not grow at a steady rate and the Rule of 72 should only be used as a guide in setting longterm investment goals.

Neither Heartland nor any of its representatives may give legal or tax advice. For guidance on a specific situation, investors should consult their tax adviser or legal counsel.

Past performance does not guarantee future results.

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