Why should I use a Private Foundation?

• The Private Foundation strategy is best used for rapidly achieving financial freedom by replacing your W2 (or 1099) income with a director’s salary for managing the Foundation.
• In order to pay yourself this salary, the passive income in the Foundation must be able to pay your desired salary as well as a 5% donation of the maximum Foundation value each year. This way you can draw the salary in perpetuity.
• The Foundation allows you to grow your passive investment income without paying income tax or capital gains. This allows you to rapidly grow capital in the Foundation. So the strategy is to fund the Foundation as quickly as possible so you can replace your current income.