Personal Endowment Funds for Modern Yogis

An endowment fund:

… is an investment fund established by a foundation that makes consistent withdrawals from invested capital. The capital in endowment funds, often used by universities, nonprofit organizations, churches and hospitals, is generally utilized for specific needs or to further a company’s operating process

Financial endowments are typically structured so the principal amount invested remains intact, while investment income is available for immediate funding for use to keep a nonprofit company operating efficiently.

I didn’t realise there was a specific term for this. It’s similar to a fund for your retirement.

Why couldn’t every yogi, philosopher, artist, contemplative or scientist have their own personal endowment fund?

They keep the principle in tact and live off of the interest. 

In a way this is what everyone strives for in finance. To have a lump sum big enough that the interest you earn from it is enough to cover your living expenses.

Once a principle sum is earned, that sum in theory can support someone forever.

For example say Alice the artist managed to put away enough money to create her own personal endowment fund. Let’s say she is a frugal artist, so 5% of £250,000 is enough for her to live comfortably on. That’s £12,500 per year in interest which she lives on.

She continues like this for many years until her death. In her will, she passes on her personal endowment fund to another artist. Maybe someone she was mentoring or an upcoming artist she saw potential in.

Like that a personal endowment fund can continue for a very long time.

The endowment funds from universities like Harvard or Yale are at least decades old and in theory could continue on forever.

It also makes an interesting pitch if you are looking for an endowment fund. For example you could find wealthy individuals to create personal endowment funds to support an artist or contemplative. The wealthy individual puts up and continues to own the principle (say £250,000), but the interest can go to the artist.

One could also crowdfund directly for a personal endowment fund. Like we see many Kickstarter campaigns for things. I can imagine say a musician runs a concert that sells tickets where the bulk of the funds will go towards a personal endowment fund. That money then becomes the principle and will never be spent, only the interest gained from it.

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