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Financial Planning / Tax Strategies
|Subject: Charitable Foundation & investments||Date: 12/6/1998 11:37 AM|
|Author: Cschultz||Number: 6794 of 122579|
My husband and I are setting up a charitable foundation in which our investments can grow untaxed.
We are working with a lawyer,accountant and financial advisor to set this up. We would like to manage the investments if at all possible. Our plan is to contribute $100k per year out of our currently taxable account into the foundation for a total of $500k. Our strategy is to have 4 separate foolish 4 accounts in there, each purchased during a different quarter of each year, to be turned over as normal, each at the end of 1 year of holding. The last $100k could possibly be some blue chip companies. This foundation would probably need money taken each quarter when that particular fool 4 turned over, and put into a money market account in the foundation for expenses and donations. Our question is this..does this sound like a good portfolio strategy? Our financial planner is suggeesting that we farm out our money to 3 or 4 money managers that each specialize in a particular investment style that fits with our plans and needs. It's expensive and it would require our portfolio to make more money just to make up the management costs. We don't mind paying for it if it's worth it but we've already been burned by a portfolio manager who wasn't worth it and we're a little hesitant to get into it again with someone else.
I would appreciate a reply if anyone has done anything similar with more than one foolish 4 account and how it worked out. Remember,this will be in a tax-free account so the turnover won't matter.
In our taxable account, We plan to keep blue-chip companies and also a percentage of high-tech related companies.
Thank you very much for any replies.
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