Assuming global ETFs returns are at a conservative 6%, I may allow up to 3% drawdown to pay for expenses related to the trust fund management, and the balance of this 3% to be split into 2 portions:
- 10% to churches of Christ
- 90% to generational income
How to split the 90% of the drawdown post expenses
Likely the idea will be based on direct lineage, group generations and age to unlock. Assuming
- need to be direct lineage from our children downwards
- 30-35 years old to unlock receiving part of the income
- capped amount by generations, eg say there’s 3 or more generations
- my wife and myself being 1st gen
- our kids 2nd gen
- our kids’ kids 3rd gen
and say out of our 3 kids, 1 chose not to have kids and another has 2 and another has 5. Then we can see that there may be more dispersion of income to the one with 5 kids down the road. My original idea is that then the gifts to be split by groups according to the tiers, eg of the 90%, if there is 3 generations, then 30% to the first generation, 30% to the second generation and 30% to the 3rd generation until the first generation passes on.
Question is that balanced or fair…or not? To a certain yes, but also to another extent, I think it’s great that they have kids. I have to consider more of this rather than capping / penalizing for having more kids.
Considerations
Perhaps instead of making it based on 3% drawdown and splitting from there by lineage, age and number of recipients directly, maybe it will be more balanced to go with
Trending
- Matching earned income up to X amount, eg $5K matched dollar-for-dollar earning (in today’s dollars to match for inflation). So someone can take a simpler and less stressful job but still earn well to live well
- For those who decide to not work, become YOLO, take business risks or not at all then up to $2500 of today’s income equivalent
- For those who decide to have kids, to have additional $1000/month/kid in today’s numbers equivalent, for 25 years to help them sustain living with bringing up children
- For those who wants to study, education for primary, secondary and ONE tiertary capped at say $100K of today’s dollars.
I want my future generations to work, be productive and yet live well.
It is complex and I wonder if the trust fund we create can cover all the bases and expenses related to it, and yet still grow profitability and in giving out.