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Dec 24, 2024
11:01:09am
Cosmos-beard-card Contributor
To clarify, the endowed gift pays up to 4.5% starting in year 3. So they’re
skimming interest, but never cutting into the original principal amount. But as the fund grows, when investment / interest gains exceed 4.5%, the amount of money available annually for spending is 4.5% of an increasing denominator. This way, hopefully it keeps up with inflation (if Joe Biden isn’t president) so you can offer scholarship / NIL amounts that stay current with inflation.

Last time I checked, BYU was growing the endowment funds they manage >7% per year. When they have a down year, they can go lower than a 4.5% payout… it’s very smart and conservative, and it does exactly what you’re suggesting.
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Originally posted on Dec 24, 2024 at 11:01:09am
Message modified by Cosmos-beard-card on Dec 24, 2024 at 11:02:09am
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