US Submarine Veterans Charitable Foundation
USSVCF NewsLetter
SHIPMATES CARING ABOUT SHIPMATES
MICHAEL TALPAI
LEGACY FUND
Here’s a description:
Our Legacy Fund is essentially an endowment fund. We can consider it a quasi-endowment fund.
An endowment fund operates as a permanent financial asset that generates earnings through investments. The core principle is to preserve the principal amount (the initial endowment) while utilizing the generated earnings to fund various good causes.
An endowment fund is a financial asset designed to provide ongoing support for specific purposes. The principal amount of the endowment is invested in a diversified portfolio, including stocks, bonds, and other assets. The primary objective is to preserve the principal, ensuring it remains intact and continues to generate earnings over time. These earnings, typically interest and dividends, are used to fund charitable activities, educational programs, or other designated good purposes. By adhering to prudent investment strategies and spending policies, the endowment fund ensures a steady stream of income is available for current use while safeguarding the principal to support future needs. ---
June 20, 2024
Issue 5
Copyright © USSVI CF
Editor - R. Bachman VP-ED