Walter Raquet is taking a leaf out of Andrew Carnegie's book, "The Gospel of Wealth."
The 56-year-old co-founder of Knight Trading Group in Jersey City is living proof that Carnegie's philosophy is alive and well.
In his book of 1889, Carnegie said you can't take your wealth with you.
All individual wealth, the U.S. industrialist wrote, beyond that which is necessary to meet the needs of a person's immediate family, should be placed in a trust fund for the community.
Walter Raquet, the son of a New York City firefighter, has established his own charitable foundation, the Raquet Family Foundation, with one million shares of Knight stock. And he has pledged 90 percent of his estate to charity upon his death. Raquet owns 7.3 million shares of Knight stock which at press time is valued at $110 million.
"Being charitable is very important to me," Raquet said. "It's a responsible thing to do. I'm big on volunteerism."
Blue-Collar Household
Nothing in Raquet's background, except perhaps his dad who became a successful investor, suggests that Raquet would metamorphose into a Carnegie figure himself. Raquet was born and raised in Cambria Heights, Queens, growing up in a blue-collar household.
"My father worked three jobs," he said. Indeed, Raquet's late father was hardly a typical civil servant. He managed to build up a nest egg that was worth one million dollars by investing shrewdly in the stock market, according to Raquet.
Raquet, a CPA, was at first reluctant to talk about his charitable endeavors. He does not think it makes him special to give away his millions. "I've always been involved in making charitable contributions," he said. "But I was never able to do it on the scale that I am able to do it right now."
Each year Raquet says he gives away about a million dollars to various charities. But donating money to charities is nothing new to him. Even before he became wealthy, he was involved in donating money to worthy causes. "I'd rather see individuals do things as opposed to the government," Raquet said.
What does Raquet's family think about his decision to donate most of his estate to charities? Raquet, who is married and has four adult children and two grandchildren, said the family is supportive.
"My wife and I feel very strongly that the children should earn their own money. There certainly will be enough left to make them live comfortably," he said. "Most [wealthy] people don't give ninety percent of their estate to charity. They try to pass the money onto their family."
Raquet may admire Andrew Carnegie's philanthropy but his role model is a contemporary billionaire: Bill Gates, who is leaving his children a relatively small portion of his huge estate, about ten million dollars apiece. Like Raquet, the world's richest man today is donating the bulk of his estate to charities.
While Raquet's huge wealth will benefit charities only after he passes away, philanthropists like Michael Bloomberg, George Soros, and Ted Turner have moved fast, donating hundreds of millions of dollars of their own money to several causes. The reason Raquet is not following them is his desire to see his estate multiply and flourish. "I think it's important to let it grow," he said. "I also want to put it into the areas where it can make a difference."
Health and Children
The Raquet Family Foundation will focus exclusively on health and children's issues. The Raquet children will be closely involved in choosing the causes and organizations which will be funded.
Among Raquet's favorite charities are the American Cancer Society, the American Heart Association, and the St. Jude Children's Research Hospital. The reason is deeply personal. These charities concentrate on health problems that have affected his family. Raquet's father died of cancer and his oldest daughter once underwent heart surgery as a youngster.
Other charities that Raquet regularly contributes to include the Cystic Fibrosis Foundation, the Make A Wish Foundation, the National Theatre Workshop for the Handicapped, and the National Multiple Sclerosis Society.
For nearly a decade, Raquet has played a leadership role in raising funds for the St. Jude Children's Research Hospital in Memphis, Tenn. Each year Knight Trading Group sponsors a benefit golf tournament that generates hundreds of thousands of dollars for St. Jude. Last year's event raised over $200,000.
"We are so fortunate to have individuals like Walter help with our mission," said Cathy LaSusa, northeast regional director for St. Jude. "One person can make a difference."
Raquet, who could retire comfortably, has no plans to scale back on his busy workload. He is committed to expanding Knight Trading Group, the last major privately held Nasdaq wholesaler. "We have an incredible opportunity to grow the business," he said. "We want to take it to the next level."
The self-made, multi-millionaire philanthropist is not all work and no play. Raquet finds the time to play a few rounds of golf. He and his wife, Nancy, also enjoy vacationing at their new 10,000 square-foot oceanfront, Bermuda-style home in Palm Beach, Fla., which they purchased two years ago for $7.5 million.
