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Wow, what a champ! Put that capital into a fund that will be redistributed to music education when he dies. No interest in material wealth... keeps his life sim

by pxlpshr 18y ago

Wow, what a champ! Put that capital into a fund that will be redistributed to music education when he dies. No interest in material wealth... keeps his life simple, focused, and open.

jmatt 18y ago
I image that is easy to do when you are relatively rich. He has no doubt made "enough" money through owning the company over the past 10 years. I agree it's admirable to give the capital away. But, not uncommon now-a-days with owners. I think one difference is many owners continue to grow their personal wealth until they die or turn to philanthropy (with a successful track record they can likely grow that money better than most trusts).
- netcan 18y ago
  You know, that's the response a lot of people have when they hear of Bill Gates' or Warren Buffet's donations. But the truth is, they are unique. Billionaires don't all give their money away. In fact, very few.
  - jmatt 18y ago
    I personally know a few people worth 5-50 million and they are giving most of their money away either right now or when they die. So at least on a personal level that is not true. Those that I know - are not in the tech industry and they are not living on the coasts. I think this changes the mindset a bit. They are normal successful people. I think you'd be surprised how many executives and owners give their money away. I'm talking about executive management in fortune 1000 companies and small business owners. The ones that aren't in the limelight and don't have anything to prove. They choose their most meaningful causes and make a difference there. From my experience most of successful people I know are responsible and understanding of their success and wealth. Now that doesn't mean there isn't a small minority that are a bunch of jags - but it does mean the silent majority is exactly that - silent. [EDIT: Wording]
menloparkbum 18y ago
No interest in material wealth? Charitable remainder trusts are a standard old money tax dodge. He gets a tax free income for life, and when he dies, the charity gets what's left. It also saves him 3.3 million dollars in federal capital gains taxes. It is shrewd but not particularly ascetic.
- sivers 18y ago
  The income a person earns from their charitable remainder trust is absolutely not tax-free! It's taxed as regular income, for life. The charity - the final beneficiary - is the one that gets an additional 3.3 million dollars in your example, since the money was put into the trust before capital gains tax - instead of the donor paying tax first, then giving to charity after.

by pxlpshr 18y ago

Wow, what a champ! Put that capital into a fund that will be redistributed to music education when he dies. No interest in material wealth... keeps his life simple, focused, and open.

jmatt 18y ago

I image that is easy to do when you are relatively rich. He has no doubt made "enough" money through owning the company over the past 10 years. I agree it's admirable to give the capital away. But, not uncommon now-a-days with owners. I think one difference is many owners continue to grow their personal wealth until they die or turn to philanthropy (with a successful track record they can likely grow that money better than most trusts).

netcan 18y ago
You know, that's the response a lot of people have when they hear of Bill Gates' or Warren Buffet's donations. But the truth is, they are unique. Billionaires don't all give their money away. In fact, very few.
- jmatt 18y ago
  I personally know a few people worth 5-50 million and they are giving most of their money away either right now or when they die. So at least on a personal level that is not true. Those that I know - are not in the tech industry and they are not living on the coasts. I think this changes the mindset a bit. They are normal successful people. I think you'd be surprised how many executives and owners give their money away. I'm talking about executive management in fortune 1000 companies and small business owners. The ones that aren't in the limelight and don't have anything to prove. They choose their most meaningful causes and make a difference there. From my experience most of successful people I know are responsible and understanding of their success and wealth. Now that doesn't mean there isn't a small minority that are a bunch of jags - but it does mean the silent majority is exactly that - silent. [EDIT: Wording]

menloparkbum 18y ago

No interest in material wealth? Charitable remainder trusts are a standard old money tax dodge. He gets a tax free income for life, and when he dies, the charity gets what's left. It also saves him 3.3 million dollars in federal capital gains taxes. It is shrewd but not particularly ascetic.

sivers 18y ago
The income a person earns from their charitable remainder trust is absolutely not tax-free! It's taxed as regular income, for life. The charity - the final beneficiary - is the one that gets an additional 3.3 million dollars in your example, since the money was put into the trust before capital gains tax - instead of the donor paying tax first, then giving to charity after.