/biz/ - Business & Finance

[Anonymous No.960466]

So, if I were to die, and dedicate my life savings to a scholarship that is self sufficient through investments, how much would I need?

taking into account that an average semester here costs around 3k, and that adjusting a portfolio of 300k for inflation would be around 12k, I would have to create a capital of 500k before I die to have a stable scholarship that can award every semester.

However, how do I hire someone to make investments for this scholarship fund? how much would I need so that this scholarship would be self sustaining for the foreseeable future?

[Anonymous No.960484]

>>960466
Don't bother, it'd be a scholarship for literally one person and eventually somebody corrupt would become in charge and pocket it. You can't stop them, you're dead.

[Anonymous No.960489]

>>960484
can't i leave it in the hands of a philantrophy company or something? government? transparency?

is there really no way to viably do this?

[Anonymous No.960493]

>>960489

Yeah there is.

Get more than $500k. Around $10,000,000 or so.

So you can give scholarships to much more people.

And it doesn't have to be a full ride, you can make it $1000 per year for 4 years, or just $1000 for 1 year.

However you could start a company and have your family be in charge of it and making sure the work is done for the next 100 years or whatever

But $500k is nothing to start a scholarship with lol.

[Anonymous No.960502]

>>960493
i dont think my field of work and my lifestyle is able to do 10mil.
I'm a really young comp engineer that I'm estimating to start at 80k-100k out of college. However, I think I'll be going for masters right after.

how can I make this viable without having to live in poverty? Is there a way to award a little (like around 300/year) and then build up the portfolio and then award more and more?

[Anonymous No.960510]

>>960502
Not viably. You simply do not make the profits needed to do this. If there were 100 of you, maybe.

Look not to be a dick but what I'm literally expressing is that you will not reach this life goal of yours, by leagues.

[Anonymous No.960513]

>>960510
what would the most philantrophic thing i can do with a humble fund? I want to help students that have really rough living conditions but still want to go to school in spite of the deck stacked against them.

not like "i want to go to school cause i heard it increases my income," but like wants to go to school to pursue a real dream.

[Anonymous No.960514]

>>960513
I want my money to stay pure. It seems that a lot of funds these days are kind of corrupted by politics or just greed.

[iHaz !MILLiOnz/Q No.960576]

>>960489
>can't i leave it in the hands of a philantrophy company or something?
Yes, of course. Every school is going to have a foundation or office that accepts gifts in support of scholarships. If you're making a gift in the neighborhood of $100k, then they'll gladly help you with the logistics. They'll also handle the investing and they'll decide who gets the scholarship. Your involvement pretty much ends after making the gift.

As an alternative, you could open a donor advised trust. Donor advised trusts are becoming much more common, and you can them at Fidelity and Vanguard these days. You would continue to manage the investment decisions, and you would decide when and how much to withdraw each year for scholarships. However, the withdrawals would have to go to the school's scholarship foundation, and they (not you) would decide who actually gets the money. (If you make the decision, its not considered charity.) Your interest in the trust passes with your estate, so in theory your descendants could carry on the annual gifts. Or you could make a lump sum donation of the trust on your death.

Either way, since your money goes to the school's foundation, the amount doesn't matter. Whether its $1K/year, $2k, $5K or whatever .... the foundation will combine your money with their other gifts and make it count. You won't get your name on a building, but if you goal is to help people, then you shouldn't care about the recognition.

Charitable trusts are pretty common among people of reasonable means. I personally advise on several donor advised trusts, and I'll be opening my own personal donor advised trust before year end.

There's not enough room here to go over all the details, but if you're curious and need more guidance I can point you to some sources to learn more.

[Anonymous No.960596]

>>960513
I'm homeless and my dream is to get a computer and master logic and pro tools.
No middle man means the savings get passed on to me!