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I agree, I don't want my children to come to depend on an inheritance that they may not be getting. They can chart their own course and yes they will get something but it will be a bonus and not something I want them to think about or rely on.
I also agree regarding watching TV on the couch. I don't mind doing that frankly, but I will find other things to do. I happen to enjoy work, and won't mind continuing to do so, at my own discretion. One reality will likely be that there are so many things I enjoy that I may not be able to get around to doing everything!
Just a note on giving to your children. My grandparents left 50k to each of my siblings and I when they died (we were all over 25). We all used that money as a down payment on our first homes and combined with our parents paying for our undergraduate degrees, it gave us a really solid start in adult life and we are all currently doing financially well.
So while I wouldn't hand over a big check to a 20yr old, good use of that money can really change their future.
NYC is filled with rent stabilized , low income and affordable housing but you need fairly low income and a very long wait to qualify. I would not attempt to retire here on 50k pre tax income ,ever..
One thing you didn't mention about NYC is that I think they have a larger share of people working under the table/off the books than most other places. More unreported income drags down the median.
Secondly, stay far far away from any kind of trust. They can be a pain in the neck and expensive to maintain.
That's just ... wrong.
Five different family members have set up revocable trusts, including me. The only cost was the attorney to set them up. I've also closed 2 of those trusts - no cost at all.
Quote:
Originally Posted by ticking
Although I do intend on working part time, I also will have a lot of freedom and would hope to use it. I am less concerned about not tapping into the 3 million, I intend on doing that, if that is what it takes. At this point I do not intend on living to age 90, and if I do I should have both my state pension, and SS to keep me off the streets. Really it is ok (from my viewpoint) if I spend a lot of the inheritance as I go, I don't want to have to worry about preserving it at the expense of not enjoying the freedom and experience it can enable me to have. I do want to make sure I have put some aside for my children, I don't think I would give them access to it, but at some point in the future they would, presumably when they are older, established, and past the days where they are more likely to 'blow it'!
I like your attitude.
And re The Kids being older and more established ... that's why I suggested earlier that you look into a trust. Ages can be set.
I also had inheritances from 2 different trusts (also in California, and never paid a lick of tax!) and a pension. No SS yet because I'm too young. Enjoying doing whatever I please, LOL
One thing you didn't mention about NYC is that I think they have a larger share of people working under the table/off the books than most other places. More unreported income drags down the median.
nyc is alot of lower income and higher income folks . the middle class that gets no subsidies can find a place to live but it certainly isn't a life i would enjoy .
squeeking through and just paying the bills isn't exactly my idea of how i want to spend retirement.
according to the ny times middle class income depending on life style and location in nyc ranges from 45-134k a year. but a true middle class life style takes 80-166k
in fact the housing projects will considor family of 4 up to an income of 68k.
our city council defines middle class as :
" For the Council's purpose incomes between 100 percent and 300 percent of the area median income. Here in New York that means income between $66,400 and $199,200. Lower Middle Class would be $53,120 to $66,400 and Low Income would be anything below $53,120.
Last edited by mathjak107; 09-29-2014 at 05:18 PM..
That's not cheap. Would you travel one a year there and stay 3 months at a time?
Since you would like to leave some money for the children eventually, why not put their part aside out of your 3 million now......as little or as much as you'd like. But it could be a lesser amount because it would grow and be more by the time they need to tap it anyway.
That way they're taken care of -- or your set aside what you'd like them to have....and you can use your money for you with no worries.
I'm not saying you'll "blow through" the 3 million by any means.
But to be honest, I'd hate to see you spend it all down and not have anything to help them with or leave them, as your father as done for you. (It's not even 3 mill in money because 700K is tied up in a house.)
Not that any parent HAS to give or leave anything to any child -- but I think it'd be ironic for you to inherit 3 mill from your dad, travel the world spend it ALL on yourself -- and not leave that same leg up for your own children.
Yes I intend to set aside X amount for the kids.
The entire sum may not be 3 million total, it may be a little more. I'm not accounting for certain items such as vehicles, safety deposit box, cash, and checking accounts, valuables in the home, jewelry, it could also go down if the stock market were to crash. Regardless of the final amount, I will likely enjoy a fair amount myself. I've put off a lot of things I'd like to do, and given the opportunity at age 50 or so might be the last time for me.
Someone mentioned up thread about having a small farm/ranch. That was also something that I always wanted to do. I'd probably unload the 700k house and might give the ranch idea a go during my time in the states. Nothing big at all, just a cow or two, a pig or two, chickens. I'd have a lot to learn, but this would be my chance to see if the lifestyle agrees with me. I wouldn't be getting in too deep regarding buying a lot of equipment. I'm going to have to continue investigating this and see if it is feasible.
Although I do intend on working part time, I also will have a lot of freedom and would hope to use it. I am less concerned about not tapping into the 3 million, I intend on doing that, if that is what it takes. At this point I do not intend on living to age 90, and if I do I should have both my state pension, and SS to keep me off the streets. Really it is ok (from my viewpoint) if I spend a lot of the inheritance as I go, I don't want to have to worry about preserving it at the expense of not enjoying the freedom and experience it can enable me to have. I do want to make sure I have put some aside for my children, I don't think I would give them access to it, but at some point in the future they would, presumably when they are older, established, and past the days where they are more likely to 'blow it'!
You don't "plan" on living to 90? Why not? I wasn't aware than one plans one's lifespan, but why don't you expect to make it that far? Everyone in my extended family, including all 4 grandparents, aunts, uncles, etc. made it to 95, at least. To play it safe, you need to plan that far, if not farther. What will you do on your 90'th birthday? Make sure it's your last?
Someone mentioned up thread about having a small farm/ranch. That was also something that I always wanted to do. I'd probably unload the 700k house and might give the ranch idea a go during my time in the states. Nothing big at all, just a cow or two, a pig or two, chickens. I'd have a lot to learn, but this would be my chance to see if the lifestyle agrees with me. I wouldn't be getting in too deep regarding buying a lot of equipment. I'm going to have to continue investigating this and see if it is feasible.
I had farmers/ranchers in the family. They don't buy their own equipment, it's not feasible. They buy as a group, and share. You're starting to sound like one of those people who wins the lottery, gets carried away with giving money away, realizing all kinds of dreams, etc., only to end up broke and on the street. Not that extreme, of course, but be careful. And thanks for the follow-up posts.
That's just ... wrong.
Five different family members have set up revocable trusts, including me. The only cost was the attorney to set them up. I've also closed 2 of those trusts - no cost at all.
I like your attitude.
And re The Kids being older and more established ... that's why I suggested earlier that you look into a trust. Ages can be set.
I also had inheritances from 2 different trusts (also in California, and never paid a lick of tax!) and a pension. No SS yet because I'm too young. Enjoying doing whatever I please, LOL
Sure, while you're still alive a revocable trust is easy to deal with if you're the trustor. You can revoke it at any time for free. However, it's usually a different story once you die. Then, depending on how complex the trust was and how many beneficiaries there are and how many trustees there are, you can end up with a real mess. I'm currently working on such a mess right now. Thousands of dollars in attorney fees, family members not speaking to each other, and the situation is nowhere near resolved. All because some unscrupulous trust mill attorneys convinced certain elderly people that they needed a "trust." In reality, a simple will combined with perhaps the transfer of certain real estate with a retained life estate would have accomplished the same thing and everything would be a done deal by now.
Sure, while you're still alive a revocable trust is easy to deal with if you're the trustor. You can revoke it at any time for free. However, it's usually a different story once you die. Then, depending on how complex the trust was and how many beneficiaries there are and how many trustees there are, you can end up with a real mess. I'm currently working on such a mess right now. Thousands of dollars in attorney fees, family members not speaking to each other, and the situation is nowhere near resolved. All because some unscrupulous trust mill attorneys convinced certain elderly people that they needed a "trust." In reality, a simple will combined with perhaps the transfer of certain real estate with a retained life estate would have accomplished the same thing and everything would be a done deal by now.
The bolded is really something to watch out for. And before the inheritance taxes were rolled back, it was easy to sell those products by scaring people with how much of their hard-earned money the gov't would take if they didn't put it into trust. Elaborate schemes were worked out that in the final analysis, didn't save on tax money. They just postponed some of the tax payment to a later generation, with some of the trusts.
I had farmers/ranchers in the family. They don't buy their own equipment, it's not feasible. They buy as a group, and share. You're starting to sound like one of those people who wins the lottery, gets carried away with giving money away, realizing all kinds of dreams, etc., only to end up broke and on the street. Not that extreme, of course, but be careful. And thanks for the follow-up posts.
Well Ruth, I guess it must sound silly then, and it could be that I do wind up broke, but I would try not to let that happen. I don't know what to say other than these are things that I've wanted to do and have been unable to do, and I might be able to salvage a few of these dreams in middle age. I haven't lived an extravagant life to this point, but I figure why not do so in my 50's? Of course I should never wind up on the street as I've contributed to both SS and to my own retirement acct for over 25 years already.
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