30/1/20 ^^^Matters pertaining to Foundation

I am now clearer of who are the Club 50 and their functions.

That is pretty much it.  When the time comes I need to do some running around.  Already I checked on the requirement of forming a private foundation.  It is quite extensive.  The good thing is it is tax exempted.  I need to use only 5% of the endowment for charity every year.

The setback is I got to donate to public charity organizations.  I cannot conduct the charity for myself.

In Malaysia, interest earned from is exempted from tax.

Take away points:

• Can start with RM1 million cash
• Pay excise tax 1% - 2% annually
• Can draw salary - Taxable.  If I just earn interest from saving there is no tax

I think having a foundation is an added layer of complexity.  I am already tax exempted.  So I don't need a foundation.  A foundation is like a company.  It need 2 founders. It has annual general meeting and it has company secretary.  It is also subject to audit.

This is a form of tax shelter for those who are still generating income from employment or business.

In my case I don't need that.  I manage the RM40 million as a personal asset.  That way I can decide to give to whoever I like.  I can give to my father, Jad and Zizi without them holding the Money Tree.  I can also give to individuals based on invoice and receipts.

I can be the direct benefactor of the charities and the NGOs that I like without involving my wife and family.  Let them handle the RM97 million.

Then the unused balance I send to Club 50.

That means I pool my RM4 million making the total RM44 million.  We are talking about RM1.76 million a year of interest.  The 50% for my utilization I can use to hire extra helping hands if need be.  I'm thinking of having a personal assistant.

This is much better than spreading the RM40 million to my family.  This *wa[s] (way) I decide if the cash is put to good use.  That also means that I secure a better position as the Head of HOTS.

*  Trust me Sarah, I don't need much for my own utilization.  Whatever I don't use I plow back to the principle.

As long as I live below my means and I live in gratitude, I have very little use of money.  As I said, the watches are already the highlight of my indulgence.  Car, I'm happy **[happy] with what I got.

**  Yes honey, that's my best car ever.  Cold air cond, superb gadgets and I like the size very much.  On top of that, the price is awesome.  It did crossed my mind to drive a Mercedes.  Then I remember the Ikea founder and his beat up Volvo, I changed my mind.  We go Voluntary Simplicity all the way baby.

In short I live in the same house, drive the same car, maybe dress better and eat better.  Business trips on company's expense.

Let's make this work.  We have the winning combination.  Let's not let money get to our [b]eads  (heads).

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