On Mar 25, 4:18 pm, beliav...[at]aol.com wrote:
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It's also worth reading David Swensen's book about Endowment
Management. He runs the most successful university endowment in
America (Yale U).

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I am afraid that there may still be some confusion as to what is happening
here.When you make a donation, in any form, to any charity, it is THEIRS.
Think of it as putting $5 in the poor box at church. YOU can not ask for the
$5 to be returned to your heirs..........................
Cal Lester CLU

"Cal" <cal-lester[at]comcast.net> wrote in message
newsq2dnYKyiLMLEpvbnZ2dnUVZ_tadnZ2d[at]comcast.com...
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actually, since they don't give it back, yes, they DO "keep it". I was not
saying they didn't "keep it" from day one, but thanks for the clarification.

On Mar 25, 6:23 am, Ram Samudrala <r...[at]sp1.compbio.washington.eduwrote:
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When don't you talk to your university's fund raising department. I
am sure they can give you some advice eventhough you may not donate to
them.



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On Mar 25, 3:51 am, Ram Samudrala <r...[at]sp1.compbio.washington.eduwrote:
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You can establish a family charitable remainder trust, so you can have
control over how the money will be spent in terms of charities.
You'll probably need a lawyer to do this.

On Mar 25, 8:23 am, Ram Samudrala <r...[at]sp1.compbio.washington.eduwrote:

<snip
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Your goal of a guaranteed 10% real (after inflation) return is
completely unrealistic, by a factor of about 4. Real interest rates on
U.S. Treasury inflation-indexed bonds are about 2% -- see
http://www.federalreserve.gov/Releases/H15/update/ . You need to set a
more realistic goal.

"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote in message
news:B7jNh.7791$f56.7424[at]bgtnsc05-news.ops.worldnet.att.net...
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Actually they do NOT keep it when you die. You DONATED the principal
to them on Day 1. They in exchange provided a Lifetime Annuity for you
at above prevailing rates..
Cal Lerster CLU

Gil Faver <rowdy'sboss[at]xxyz.com> wrote:

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I am willing to compromise on this issue as long as when they "keep
the money" I can somewhat control what happens to it (i.e., how they
keep it). Please see below. That is, I'm willing to let this "income"
go on to another person.

Annuity is I guess the general area I am looking for. It actually
looks like the Hillsdale type of deal that joe pointed to is closer to
what I am looking for (i.e., greater benefits in terms of taxes,
etc.). The only thing I see missing is the inflation adjustment.

Now here's the twist: can I myself start a charitable foundation of
some sort, and then make a gift to it with the principal, and then
receive "income" from it (and pass the "income" on to someone else in
a general way when I die)? Does the logic of this make sense? I know I
can just manage the principle and make an income and use that income
to my benefit but I am trying to get the 10% + inflation adjustment as
much as possible with as much simplicity (i.e., tax benefits for
example would help and I'd like to cut out any middlemen).

I will be more concrete: I am a tenured professor (age 34) running a
large research group at a public university. I am personally wealthy
with some fixed generating assets that do not generate any income. I
can now sell these assets. My personal income is secured until I die
(well, to a degree that a state government in America is "secure"). I
do not really have to retire (I don't plan to) but even that income is
secured (since I have a retirement plan).

I want to create an "endowment" of sorts to fund my group and
scientific research at the 10% + inflation rate as guaranteed as
possible. It would be nice if I had a choice of funding my group or
just keeping the "income" (see the Hillsdale example) to use at will
but I can give up this choice. That is, I generally would want ALL the
"income" to go to funding my scientific group (thereby funding my
scientific research), like a grant. Our taxpayer dollars currently
support my group and I have to apply for grants.

This way I never have to worry about my research group up to a point
(i.e., in terms of grant writing, etc.). I just want to make sure that the
incomes of my research personnel are guaranteed and I can continue my
scientific group.

Again, I know I can just invest in some clever way with some financial
manager in stocks, bonds, etc. I'm looking for something more straight
forward and less managed and treated more as a charitable situation.

When I die, if I can specify that that the funds will just be passed
to another professor (say someone who is just starting), I'd be
satisfied. I don't care about it going to my family, etc.

It's like creating an endowment for my own scientific research... but
I want it independent of my University (in case I change universities,
etc.).

Again, I apologise for the naiveness. I just thought of this option
recently.

--Ram

joetaxpayer <joetaxpayer[at]nospam.com> wrote:

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But can the charity be an entity I create? I want it to fund
scientific research.

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Thanks. Glad to know I wasn't proficient in my googling.

I'm now open to options as to how to achieve this goal without an
investment vehicle, if it's possible. How do foundations do it?

--Ram

"Cal" <cal-lester[at]comcast.net> wrote in message
news:sdWdndouXdcP4pjbnZ2dnUVZ_hmtnZ2d[at]comcast.com...
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and, unlike the desires of the OP, they keep the money when you die, so you
can not "will it as you desire".

On Mar 24, 10:38 am, Ram Samudrala <r...[at]sp1.compbio.washington.eduwrote:
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Yes it does.


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The vehicle exists, just not your guaranteed rate of return with an
increase in principal.


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the Charitable Annuity concept is a VERY valid one. You pick the
Charity (or church, or College), and based on age they will provide
a very adequate Life Annuity.
Cal Lester CLU

Ram Samudrala wrote:
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The closest combination of the above is to donate the assets to a
charity who will offer you a charitable annuity in return.
Depending on your age, you will see a different rate,
see http://www.hillsdale.edu/gift_estate/giftannuity.htm
for an example (I am not promoting this college, it's just an example of
a charitable annuity). At 62, the rate is 7%, with no increase for
inflation, and no further beneficiary choices. It would take age 80 to
get the 10% rate you seek, and even then, no inflation adjustment.
In general, the immediate annuity will have a two-life rate option for a
spouse, but at a lower rate.

http://www.immediateannuities.com/ shows a rate closer to 8%, but you
would have to sell the assets to buy the annuity. Going through a
charity may let you avoid the long term capital gains.

I don't think the combination you seek, exists.
JOE

Let's say I have a bunch of assets worth some sum of money (land,
diamonds, etc.). These are not generating income. I want to sell all
these assets and use the money (let's call it the principal) to
generate a fixed stream of money (income) for the rest of my life. I
am willing to commit to not touch this principal until my death, in
which case I wish to will it as desired.

I am looking for a 10% guaranteed rate (per year) for the income
stream and an increase of the principal every year to match inflation
(thus resulting in an inflatation increase of the income stream).

Does such a beast exist? I'm looking for something simple/automatic
(like a "fund") and not a methodology (i.e., a combination of CDs,
bonds, stocks, etc.) which requires work.

One compromise I am willing to make to achieve the goal is that the
principal can belong to a nonprofit organisation and/or the income
stream can be donated for nonprofit purposes. An example would be like
how a foundation operates, but my understanding is that a foundation's
"endowment" is actively managed and not all income is distributed and
the rate is not guaranteed.

I am asking this question because I am naive about what even such a
vehicle would be called. To this date, I've always believed in just
holding assets (since I personally don't need the income), but now I
find the value of an income stream to be used for nonprofit purposes
(say scientific research) to be more beneficial.

--Ram