People who read my former blog may remember my favorite "Bedspread." This display of cash is what my former girlfriend won on one of her casino visits. But why do I show this picture again? Well, I chatted with a financial advisor, and we weren't on the same track.
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I'm not knocking what this advisor proposed. My ideas of what I want to do with my money after my demise are not yet firmed up. Do I want to leave the bulk of my assets to a charitable trust (and associated charity) yet to be set up? Or, do I want to leave the bulk of my assets to my niece and nephew?
This is not the place to discuss details of my financial situation. But I will say that I have enough money to retire comfortably - if I'm careful with my money. In addition to my 401(k) which has to be tapped by the time I'm 72, I am already drawing on a pension, and I hope to inherit some money in the future. (I don't count on that inheritance, and would be just as happy if what was left to my brother and I were only good memories of my benefactor.)
But I digress....
I have a idea of setting up a scholarship fund which couldn't be touched for 50-70 years. In that time, money should double 5-7 times. If the latter, my original bequest to the fund should be worth 128 times what it is today. (Let's ignore inflation for a moment.) The problem - who would want to manage a trust for 50-70 years without tapping into its funds? How do I provide for the transfer of control, so that trustees have guidance to select who would replace them over the "compounding years" over this trust? With the amount of money this scholarship trust could generate, I could help lift a small island nation out of poverty by providing the skill sets they might need to bring high skill jobs to that nation.
I want to provide for my brother's kids. My niece is starting to do well. But my nephew has not yet gotten into the most productive years of his career. How much money do I want to leave to the "kids?" This is another question that needs to be answered.
Until I've figured this stuff out, I may just have to stand pat and do almost nothing for a while....
