peteyperson
Recycles dryer sheets
- Joined
- Sep 19, 2004
- Messages
- 108
I wanted to get a feel for how different people handle the matter of helping others with charitable donations of money (or time).
Warren Buffett feels it is better to compound his wealth so that he can donate the most upon his death. Other uber-wealthy people believe it is better to give as you go, such as Bill & Melinda Gates, who have donated tens of billions by setting up a charitable foundation that helps with problems of Malaria and AIDS in Africa.
For those with somewhat less money - either accumulating or financially independent - what are the options?
Volunteering is certain one way to contribute. In terms of financial donations, the matter is a little trickier.
In theory, it would be nice to donate on a yearly basis towards causes that need help desperately. In practice, one never truly knows that one has enough invested because:
a) Future investment returns are unknown
b) Future volatility & sequence of returns are unknown & can cause a portfolio to "break";
c) Lifespan is unknown;
d) One could get married late (or meet a woman who doesn't earn much and one is expected to support her later years rather than raise your hands and say: "Not my problem", have children late or need to support elderly parents;
e) For those living in cheaper countries like Thailand, one could face substantially increased living expenses if foreign exchange moves against you and there isn't a good or desirable alternative location to relocate to;
f) Health care insurance could not fully cover an illness or rise much faster than expected.
In light of this, one could decide to donate something every year during the accumulation phase. This would slow down wealth building, possibly pushing you past your desired FIRE age (if lesser investment returns combine with this, perhaps much past your desired FIRE age). Others might prefer to not donate but instead save an additional sum that could later provide the ability to fund yearly donations (almost like a charitable endowment of your own). A $10,000 allocation allowing for yearly $400 donations during FIRE is one example.
It is also difficult to conclude what level of donation actually makes sense. Christians tithe 10% of gross/net pay. I've never been happy with this idea. For one, considering the low level of personal saving this does seem a large chunk to donate when set against what the same person/family probably manages to save. Dave Ramsey who I agree with on most issues even suggests donating financially even whilst in debt as scripture makes no exclusion for debt with donations. True or not, I think that is just plain wrong. I think perhaps on percentage terms one should consider what one can save & invest for ones future and then decide to donate a percentage of that. This seems more relevant. A halfway house might be net wage after covering fixed overheads but non-essentials.
From a more spiritual perspective, giving feels good, and it is said that one receives back as much if not more in return either through happiness or additional income. I've found that when I've donated time I actually got back more than I gave. I've also donated books to Oxfam bookstore chain in the UK (most recently this past week in response to the crisis in New Orleans & surrounding environs). N.B. Oxfam's primary role includes providing drinking water, hygiene & basic shelter in crisis situations worldwide.
I've noticed that going through the trouble of selling books for small net gain via Amazon or Ebay, after the fees & all the hassle, often the price received per book is not much more than a dollar or two. I note that Suze Orman has suggested before to sell online reminds you of the purchase (sometimes not a happy reminder) and it is better to pass the books on as a gift & move on. I don't disagree with this line of thinking. From my perspective, Oxfam sells a book for $4.50 and I usually don't net as much. If I'm going to donate something anyway during that year, it makes sense to donate books directly and receive the benefits of reducing clutter, simplifying asset disposals & saves time. Classic win-win.
I'm hoping this is an interesting issue to many posters at the ER Forums. I have not seen any recent threads about regular charitable support. On a personal level I know that I would like to be able to contribute financially in some way. I'm not sure to what level will be practical. I do have some concerns that I might be giving away something I'll find I need later (almost like someone spending what they need later). However, I don't want to let that deter me from doing something. When one can afford little luxuries for oneself, I think it fair to treat someone in need to something nice too. Trite-sounding perhaps, but that is what I feel. I'm very new to supporting causes.
Best,
Petey
Warren Buffett feels it is better to compound his wealth so that he can donate the most upon his death. Other uber-wealthy people believe it is better to give as you go, such as Bill & Melinda Gates, who have donated tens of billions by setting up a charitable foundation that helps with problems of Malaria and AIDS in Africa.
For those with somewhat less money - either accumulating or financially independent - what are the options?
Volunteering is certain one way to contribute. In terms of financial donations, the matter is a little trickier.
In theory, it would be nice to donate on a yearly basis towards causes that need help desperately. In practice, one never truly knows that one has enough invested because:
a) Future investment returns are unknown
b) Future volatility & sequence of returns are unknown & can cause a portfolio to "break";
c) Lifespan is unknown;
d) One could get married late (or meet a woman who doesn't earn much and one is expected to support her later years rather than raise your hands and say: "Not my problem", have children late or need to support elderly parents;
e) For those living in cheaper countries like Thailand, one could face substantially increased living expenses if foreign exchange moves against you and there isn't a good or desirable alternative location to relocate to;
f) Health care insurance could not fully cover an illness or rise much faster than expected.
In light of this, one could decide to donate something every year during the accumulation phase. This would slow down wealth building, possibly pushing you past your desired FIRE age (if lesser investment returns combine with this, perhaps much past your desired FIRE age). Others might prefer to not donate but instead save an additional sum that could later provide the ability to fund yearly donations (almost like a charitable endowment of your own). A $10,000 allocation allowing for yearly $400 donations during FIRE is one example.
It is also difficult to conclude what level of donation actually makes sense. Christians tithe 10% of gross/net pay. I've never been happy with this idea. For one, considering the low level of personal saving this does seem a large chunk to donate when set against what the same person/family probably manages to save. Dave Ramsey who I agree with on most issues even suggests donating financially even whilst in debt as scripture makes no exclusion for debt with donations. True or not, I think that is just plain wrong. I think perhaps on percentage terms one should consider what one can save & invest for ones future and then decide to donate a percentage of that. This seems more relevant. A halfway house might be net wage after covering fixed overheads but non-essentials.
From a more spiritual perspective, giving feels good, and it is said that one receives back as much if not more in return either through happiness or additional income. I've found that when I've donated time I actually got back more than I gave. I've also donated books to Oxfam bookstore chain in the UK (most recently this past week in response to the crisis in New Orleans & surrounding environs). N.B. Oxfam's primary role includes providing drinking water, hygiene & basic shelter in crisis situations worldwide.
I've noticed that going through the trouble of selling books for small net gain via Amazon or Ebay, after the fees & all the hassle, often the price received per book is not much more than a dollar or two. I note that Suze Orman has suggested before to sell online reminds you of the purchase (sometimes not a happy reminder) and it is better to pass the books on as a gift & move on. I don't disagree with this line of thinking. From my perspective, Oxfam sells a book for $4.50 and I usually don't net as much. If I'm going to donate something anyway during that year, it makes sense to donate books directly and receive the benefits of reducing clutter, simplifying asset disposals & saves time. Classic win-win.
I'm hoping this is an interesting issue to many posters at the ER Forums. I have not seen any recent threads about regular charitable support. On a personal level I know that I would like to be able to contribute financially in some way. I'm not sure to what level will be practical. I do have some concerns that I might be giving away something I'll find I need later (almost like someone spending what they need later). However, I don't want to let that deter me from doing something. When one can afford little luxuries for oneself, I think it fair to treat someone in need to something nice too. Trite-sounding perhaps, but that is what I feel. I'm very new to supporting causes.
Best,
Petey
