Alright, with my Powerball tickets acquired and many of you hoping to become independently wealthy tomorrow…
💰$782M cash option is a lot of moola💰
Let’s talk about billionaires and private charitable foundations.
Come with me, and you’ll be… 🧵👇
First, what do you do if you win big on Powerball?
1. DO NOT TELL A SOUL.
2. Refer to #1
3. Get a fire and water proof safe or safety deposit box for the ticket.
4. Call the most expensive estates & trusts lawyer you can find.
5. Setup a private foundation to claim the 💰
Why a private charitable foundation?
1) You can claim the money in the foundations name
2) As long as you donate 5% of the assets every year, is income is *exempt from federal income tax*
(There’s a 1.39% excise tax on investment income, but that’s a lot less!)
Let’s talk about that 5% though…
It’s reduced by reasonable operating expenses of the foundation! So you actually reduce how many assets you have to give away *by paying yourself*
Ok, so think about those things all put together.
You have $780M in your new private foundation. Tres commas soon come.
You hire yourself, your family members, and your best friends to run the foundation, attend events, and help give your money away!
You have to donate $39M a year *less* expenses.
So let’s say you hire your crew of 10-15 people at a total of $10M a year. Good living for all involved, very nice salaries anywhere in the world.
Now we’re donating $29M and investing the remaining $741M, which needs >5% ROI.
Well, treasury bills are paying 4% right now. You’re nearly home.
If you follow this math…what you’ll see is, overnight, you’ve created a perpetual wealth machine.
Grow the assets *tax free*, pay big salaries to your people, do some good in the world.
Not too shabby, huh?
Wait…
You didn’t think billionaires gave money away out of their love for humanity, did you?!
You can read the unrolled version of this thread here: typefully.com/GoldsteinMatt_/mOdzeTR