when the rich say 'ill give 95% of my billion away over my lifetime' explained - page 3.

Plaguedeath

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Quote from: franky1 on November 20, 2023, 12:17:51 AM

they have $1b in a bank account at 6% interest
meaning it earns $60m a year.
they give just $50m yearly interest away for the next 19 years ... (totalling the $950m pledge)
yet keeping the $1b lump plus earning $10m of personal spending per year

Don't forget with inflation rate, the average inflation rate is 3%, if you only hold $10M from $1B it means you only hold 1% interest, but you're lose $3,3M your money value. But that's just a small argument with your idea, we're not yet talk about the rich's businesses or other way where he keep making money.

Most people only amazed with the "numbers", but they're not looking about the "percentage".

The rich who make $300M per month will not lose anything when he give $3M, it's just 1% of his monthly income.
While the poor who make $1,000 per month, he give $500 because he care with the other unlucky people, even the amount looks small, but it's 50% of his monthly income.

Ucy

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I think one of the reasons they say that is to avoid being criticized for not doing much with their wealth in the midst of poverty and societal needs.
It may have crossed their minds or they are likely encouraged by those who manage them to giveaway so they don't get into problems for piling up riches for themselves like the "Rich Fool" who piled up so much riches and never lived to enjoy it. .
Riches are given for the benefit society/people not to be piled up for your future enjoyments..

I think there could be those who really giveaway so much just to feel better or not to feel too guilty... but not without expecting something in return from the receiver/society. If they do not expect anything in return they would be giving without anyone (except maybe their wives) knowing.

davis196

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1.The truly rich people(the top 1%) usually don't keep all their money in bank accounts. They diversify their assets.
2.I agree with what you wrote, but I don't agree with the "put money in a bank account and wait for the interest rate" thing.
Usually the rich people declare that they will put their assets in their own charity foundations, in order to deduct taxes. AFAIK, charity foundations are tax free in many countries around the world. All the "rich people donating money for charity" BS is mostly done in order to spend less money on taxes.

NewRanger

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This means that he can only give 5% and that is from the profit of his deposit and not from the net value of his assets. but, it's better than nothing at all and that's what rich people in mathematics always live for. Grin

;.

Upgrade00

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At the end of the day it's still their wealth which they acquired and can choose to spend whichever way they want. Acts of altruism or humanitarian services can be done willingly and should not be excessively scrutinized.

Quote from: franky1 on November 20, 2023, 12:17:51 AM

they have $1b in a bank account at 6% interest
meaning it earns $60m a year.
they give just $50m yearly interest away for the next 19 years ... (totalling the $950m pledge)
yet keeping the $1b lump plus earning $10m of personal spending per year

In this example, at the end of the 19 year period they should have earned a extra $1,140,000 from interests, totalling $2.1 billion networth but they've given away $950 million away already of their money (cause yeah, the interest is also their money). This is now almost 50% of their entire networth giving to charity helping millions of lives around the world.

Quote from: franky1 on November 20, 2023, 12:17:51 AM

enjoy that thought next time the rich try to make it sound like they are going to give up their wealth for humanity.. because reality is they are not.

They did!!

Ben Barubal

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Most rich people make a lot of promises that, in the end, always fall short of the truth. There is also the saying "The rich get richer and the poor get poorer." This saying is also true.

There are also many rich people who say that they will help with the events, but in reality, it is also true that those promises are not fulfilled. It's rare that I see billionaires who always help those in need, especially during times of calamity. Only a few people know whether it is the rich who really care about the poor or the so-called philanthropists.

franky1

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when the rich say 'ill give 95% of my billion away over my lifetime' they do not mean if they have $1b today they will be at $50m at death. what they actually mean is:

they have $1b in a bank account at 6% interest
meaning it earns $60m a year.
they give just $50m yearly interest away for the next 19 years ... (totalling the $950m pledge)
yet keeping the $1b lump plus earning $10m of personal spending per year

also the % interest is usually more than 6% but they only give 5% to meet their humanitarian/altruistic hustle pledge

enjoy that thought next time the rich try to make it sound like they are going to give up their wealth for humanity.. because reality is they are not.

Topic: when the rich say 'ill give 95% of my billion away over my lifetime' explained - page 3. (Read 316 times)