Quote:
Originally Posted by bizaro86
I think it's better to spend a specified percentage of the fund vs the growth, because then you trade oil price budget swings for stock market budget swings.
I also dislike specified uses. Spend the money the best possible way- earmarked funds inevitably leads to boondoggles.
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Yep turn it into an annuity 2-4% spent after inflation goes into general revenues. Fix oil price at $50 WTI indexed for inflation and balance the budget based on that.
Over time taxes are lowered by the dividend from the wealth fund paying for services as oil becomes less and less important.