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I would always want some cushion because life expectancy and costs are not predictable. On the other hand I want to enjoy what I have earned and am not interested in dying with a large estate. It makes more sense to help the kids and grandkids now instead of decades from now when they hopefully will need it much less.
As we do not have LTC insurance, it difficult to decide how much to share with our adult children now, not knowing how much of a reserve we need to hold for our eventual LTC needs. Aside from our RMD's, we do not withdraw from our portfolio.
What we have been doing, taking a cue from what my in-laws did for us in our younger years, is give cash gifts for various milestones in their lives----birth of a child, home purchase, advanced graduate degree, etc.
We probably live a more modest lifestyle than some here, but we buy what we want, when we want it, and don't really have a budget. Just because one isn't spending large amounts out front where everyone can see it, does not mean that life is not being enjoyed to the fullest----in terms of what that means to us.
while we gift to the kids every so often we are careful about it . because the wild card is still what we need as well as what will the market and inflation gods bless us with .
we have all witnessed how fast hundreds of thousands of dollars can evaporate and no one knows which time is really going to be the big extended downturn .
i can't believe i need another 3 dental implants put in in 3 months .. i had 9 done in the last 10 years as i rejected quite a few . last year was 15k for my wife .. the year before i had 3 implants replaced on the other side ...so money goes like water at times .
At present, the cost of dental insurance would be more than what we pay in cash for routine 6 month checkups plus the occasional crown, but as I know a couple who spent $10,000 in one year on dental expenses, we need to reconsider this. We do get a discount for self pay but that wouldn't go far if we needed major work done.
without good health or lets take it a step further , LIFE , nothing else matters so we can assume in financial discussions this is already a given .
Good health is an assumption that most of us make. Life and health are tenuous, especially as we age; I've seen a number of very healthy people experience an unexpected health crisis. Taking this sort of thing into consideration might impact the way we save, invest, spend, etc..
Wow this guy! He's so easy to understand and makes so much sense. I tried to figure this out before with social security and assigning it a dollar amount but got the feeling that was a silly thing to do (couldn't figure it out ). He's suggesting Capitalizing Social Security, put it on the bond side of the equation, and adjust AA accordingly. I'm assuming the same would hold true for a pension. If a person had both they could be 100$ equities and still be underweight equities. Right?
while we gift to the kids every so often we are careful about it . because the wild card is still what we need as well as what will the market and inflation gods bless us with .
we have all witnessed how fast hundreds of thousands of dollars can evaporate and no one knows which time is really going to be the big extended downturn .
i can't believe i need another 3 dental implants put in in 3 months .. i had 9 done in the last 10 years as i rejected quite a few . last year was 15k for my wife .. the year before i had 3 implants replaced on the other side ...so money goes like water at times .
Longevity could be a huge risk, maybe that’s why a 3% SWR is now recommended. My SIL’s father just passed away at age 98, I just saw the orbituary, I thought he was 94 or 95, but he’s closer to 100. When he was younger, I never thought of him as particularly healthy and neither did with his wife. But she’s now surviving him.
Longevity could be a huge risk, maybe that’s why a 3% SWR is now recommended. .......
Who is recommending 3%?
I know Pfau and a few others recommended backing off from 4% but that was right after the Great Recession. That recommendation seemed to have faded rapidly and obviously was grossly wrong even then.
I know Pfau and a few others recommended backing off from 4% but that was right after the Great Recession. That recommendation seemed to have faded rapidly and obviously was grossly wrong even then.
Larry Swoede, I might not spell his name correctly. There’s currently a thread on Bogglehead regarding this.
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). He's suggesting Capitalizing Social Security, put it on the bond side of the equation, and adjust AA accordingly. I'm assuming the same would hold true for a pension. If a person had both they could be 100$ equities and still be underweight equities. Right?
