Invest Now, Drink Later, Spend Never the Mental Accounting of Delayed Consumption
INITIAL INVESTMENT ROADMAP How to Invest and Spend? What to Invest In and Spend On?
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Transcript of INITIAL INVESTMENT ROADMAP How to Invest and Spend? What to Invest In and Spend On?
Recommendation #1 on How to Invest and Spend:
1. Place most of the money in an endowment
• use earnings to fund expenses and projects
• use rest of funds for direct investments and spending to meet current needs
Recommendation #2 on How to Invest and Spend:
2. Decide percent (%) of money for endowment and percent (%) for direct investment and spending after CAC knows how much money the SLF will receive and when
Recommendation #3 on How to Invest and Spend:
3. Set aside money for the operating expenses of the Quasi-Public Entity (QPE).
Recommendation #1 on What to Invest In and Spend On:
COMMUNITY CAPACITIES1. Immediately create high levels of
Community Capacities to participate in land use planning and decision making (Opportunity Map)
• Provide resources to support community planning and development
Recommendation #1 on What to Invest In and Spend On:
COMMUNITY CAPACITIESFunding • Fund from direct spending initially; later
from endowment earnings • Require matching funds
Example: Dudley Street Neighborhood Initiative in Boston
• Community Planning and Land Control
Recommendation #2 on What to Invest In and Spend On:
Signature Project1. Identify and Invest in a Signature
Economic Development Project
• “Double Bottom Line”- both a Financial and a Social Return on Investment.
• Decide if Community Parcels will be good location for the Signature Project and how to use the land.
Recommendation #2 on What to Invest In and Spend On:
Signature ProjectFunding• Based on timing and money needs, fund
from endowment earnings or direct spending. Require leverage.
Example: Market Creek Plaza
• Economic Engine
Recommendation #3 on What to Invest In and Spend On:
Matched Spending Project1. Fund Matched Spending Projects that
have social returns,
• Require that SLF money is matched by other sources of funds. Fund Matched Spending Projects from direct funding initially and, later, from endowment earnings.
Recommendation #3 on What to Invest In and Spend On:
Matched Spending ProjectsFunding• Fund from direct spending initially; later
from endowment earnings
• Example: Working Families Center
• Income and Asset Development