I’m approaching the age of sixty five and no heirs to speak of. I’m in a bit of a pickle wondering what to do with the money I’ve saved up.
I was leaning towards the idea of investing the entire amount in a reputed mutual fund with the stipulation that the official inflation rate would be deducted from the yearly return to be invested back into the fund and the remaining amount going to charities or organizations of my choosing. Is there a way to set up a contract like this in a never ending loop and how would it be legally enforceable when I’m gone?
Is it much more efficient to hand it all over to charities immediately?
Anyone have any suggestions on the most productive ways to give back to society?
key is they are required to donate 5% of assets per year no matter what. any upside can be kept by the charity.
personally i think its better to give a stream of income as oppose to giving htem everything in full because
charities will spend it all right away to help as many people right now. but imo it is more wasteful, and it is probably better to keep their resources limited, while you compound the excess.
not to mention that if you keep it in a foundation, you will have a lasting legacy.
personally, if i had to choose what cause to help, i would focus on these needs:
food. this will stop people from becoming desperate enough to commit crimes.
shower. this will make them more approachable to everyone. with this alone this should get you a minimum wage job.
education, this will have the highest benefit to society as they will be more productive in life. but imo this is useless, if you cant fix the first 2.
for education, you would have to be selective. lots of needy people usually have a mental issue or an addiction, no point in investing in people that will yield low results.
“I was leaning towards the idea of investing the entire amount in a reputed mutual fund with the stipulation that the official inflation rate would be deducted from the yearly return to be invested back into the fund and the remaining amount going to charities or organizations of my choosing.”
Regarding this option - I don’t see why you wouldn’t just operate this scheme yourself while you are mentally able. You might change your mind later and want to use your money for something else while you are alive.
Posthumously, the most practical way to accomplish your charitable goals is probably to donate your estate to an organization, like a university. Trust me, they have a whole menu to choose from and whole departments that manage contributions in the way you described.
Why not start a CRUT? Charitable Remainder Unit Trust? You can set the pay out rate (to yourself) as the rate of inflation, and that payout is tax-free to you. The rest can be kept investing in the principle, once you pass, the entire balance goes to the charity of your choice.