>> his stated goal is to keep 1% of his money in the family for the next generation. Right now that 1% is 357 million
1% likely won't be anywhere near 357 million after another 10 years, let alone in 50+ years. Evaluations of wealth based on assets and stocks almost never wind up trading for that amount of cash. You are worth what you can liquidate today, not what market "experts" think your portfolio could be worth in some theoretical perfect scenario.
I agree that I wouldn't count on the exact dollar figure to stay constant. However, I believe Bill Gates is successfully divesting himself from Microsoft to fund his charity? I guess Facebook is a lot shakier and volatile than Microsoft?
Yes but I'd assume it means the child will have a trust of at least 357M which isn't bad. I don't have any problem with the 0.01% having tremendous wealth as long as 1) it is out in the open (at least clear enough that the IRS can see all its activities) and 2) distributions from the fund get taxed as income for the recipient
I am making this concession with the assumption that we will drastically increase marginal income tax on income over a certain amount (my proposal is 100 * 2000 * federal minimum wage per hour which at $15 is $3M). Marginal income under this threshold shall be no higher than say 40%? Tax on income above this amount ($3M as calculated today) shall be (just off the top of my head) 90%? I think that sounds fair.
So, in the example above, if Maxima only draws salary and benefits (cars, personal jet rides whatever) worth less than $3M per year, I don't see a reason to see that as bad for society as a whole. I think this keeps the interests of the 0.01% in touch with the minimum wage. Yes, it sounds rather naive but it is a working idea. Thoughts?
1% likely won't be anywhere near 357 million after another 10 years, let alone in 50+ years. Evaluations of wealth based on assets and stocks almost never wind up trading for that amount of cash. You are worth what you can liquidate today, not what market "experts" think your portfolio could be worth in some theoretical perfect scenario.