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Old 06-03-2014, 11:07 PM
 
Location: Southwest Washington State
21,868 posts, read 14,364,134 times
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We spend interest mainly. DH sells stock or units from time to time to take profit. We are actually still saving a little.

Whether our heirs receive an inheritance, or how much they might receive, will be decided by how long we live, and whether health care expenses burn through our savings. I think the best thing we can do for our kids is to have the mutual funds for our grands, which we contribute to every month, and take care of ourselves properly. That is, keep ourselves in good health and make sure we have money on which to live even if we live long, long lives.

We are having our estate arrangements evaluated very soon to make sure everything is compliant with current state law. Also, we will making a few changes. I think having a trust drawn up is the best way to ensure a smooth transfer of assets, unless the estate will be very small.

The OP might benefit from consulting an financial planner on how to spend down assets or interest, so he/she can make the best decisions.
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Old 06-03-2014, 11:55 PM
 
10,813 posts, read 8,059,843 times
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Like everything else, there is no "one size fits all" response.

Our two sons work hard and have independently supported themselves since they left the nest some 15 years ago. Even so, neither has yet found a position that offers anything resembling pension benefits.
DH & I were lucky to grow up in an environment that did so, and we have two fat pensions that alone should be enough to provide for us through the years to come. That's even without the SS benefits we're due.

So we'll live well on those and we'll leave our investment nest eggs to our sons to see them through their retirement.
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Old 06-04-2014, 12:08 AM
 
48,516 posts, read 83,912,172 times
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The problem is that for years many griped they wanted same control over their retirement accounts as the rich. The difference is; of course; 410k are self managed and no guarantees; of course. Careful what one asks for is always good advice. That is not to say that many have not done better with that control; just that many haven't and will not. PBS had a show on retirements accounts and two people working for same company in same positions in which one managed his well and the other did not. Very different outcomes.
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Old 06-04-2014, 01:46 AM
 
71,520 posts, read 71,694,121 times
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i have two buddies who retired here in nyc from teaching. joe was an avid investor and took an interest in investing and his finances. aaron on the other hand couldn't even tell you what he put his retirement money in.

aaron didn't care and always believed no matter what he did it wouldn't matter as they all would retire with about the same thing regardless so aaron basically stayed as conservative as he could.

well they both retired a few years ago. joe walked away with 1.25 million and aaron 200k
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Old 06-04-2014, 08:14 AM
 
Location: Tennessee
34,682 posts, read 33,681,492 times
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I have a sister and that's it. She would not come here for my "stuff" if I died so I'll have to figure out what to do with that. She is the beneficiary on everything monetary.

I rent, I don't own. I have a pension and 4 other methods of saving with more than enough money to live on. I have no debt. Life insurance will cover my demise so she'll make out.

However, in the last 1.5 years, my health (mobility issues) has taken a dive. I have to move to a ground floor apartment. I have to buy things to help me stand up, stand, walk, sleep, drive, get dressed. I can't do things I used to do. I'm always seeing some doctor or physical therapist.

Point is, you may have to spend the money, want to or not.
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Old 06-04-2014, 08:27 AM
 
Location: Haiku
4,060 posts, read 2,571,078 times
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Somebody here made a good point - our heritable assets will very likely include a house. It is not part of our investment assets so regardless of what happens to our investments, it will remain. I have forgotten about it. It is a nice house, in Hawaii.
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Old 06-04-2014, 11:10 AM
 
2,690 posts, read 4,407,868 times
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Quote:
Originally Posted by TwoByFour View Post
This is something I have been wrestling with. It is really a personal decision, not something anyone else can solve for me. But I am curious what the thoughts are of others on this topic.

We can go two different ways with our retirement savings:

(1) Invest it safely (e.g., bonds mostly) and spend down the principal. The money should last long enough if we stick to a budget. However, there will be little left for anyone to inherit. But it is very safe for us.

(2) Invest it in such a way to preserve the principal and live off the returns. This depends highly on the stock market, which is of course fickle. We could lose a lot of money if we have another meltdown like 2000, which would impact our retirement plans, maybe in a big way, maybe not. But if we invest it well there will be a lot that our heirs get.

I realize there are variations on the two extremes above. But I am curious what others are doing who have retired.
I'd do the hybrid strategy. Right now, you can not get a decent return on a safe investment. Therefore, I'd go risky as hell and be ready to sell on a dime (or even put stop losses on every risky investment). You have a good upside and limit the downside. Then when the market crashes, you don't lose your shirt, but now have cash to buy the artificially low stocks.

There are tax impacts to the hybrid strategy, but maybe you can make it work.
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Old 06-04-2014, 11:37 AM
 
894 posts, read 732,767 times
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Quote:
Originally Posted by TwoByFour View Post
This is something I have been wrestling with. It is really a personal decision, not something anyone else can solve for me. But I am curious what the thoughts are of others on this topic.

We can go two different ways with our retirement savings:

(1) Invest it safely (e.g., bonds mostly) and spend down the principal. The money should last long enough if we stick to a budget. However, there will be little left for anyone to inherit. But it is very safe for us.

(2) Invest it in such a way to preserve the principal and live off the returns. This depends highly on the stock market, which is of course fickle. We could lose a lot of money if we have another meltdown like 2000, which would impact our retirement plans, maybe in a big way, maybe not. But if we invest it well there will be a lot that our heirs get.

I realize there are variations on the two extremes above. But I am curious what others are doing who have retired.
Before I can answer this, I need you to tell me how long you and your wife are going to live......Once that is out of the way, then we can talk....
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Old 06-04-2014, 12:15 PM
 
4,649 posts, read 6,480,471 times
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Today you can get a life insurance policy and have the kids fund it. Spend it all. Just consider how long your going to be dead and how fast your money is going to be spent. You worked hard over those years to accumulate things or money just for someone else to enjoy?

If anything hopefully the kids won't need anything so a major portion can go to a charity. I've just seen too many instances where money or things were passed to another and didn't last a year. Leave what you must to whom you must but enjoy the time you do have the best you can. I've seen my parents have the material things and be buried alone in a casket with only the cloths on their back.

We come in the world with nothing and leave with nothing. So take that cruise around the world.
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Old 06-04-2014, 12:27 PM
 
Location: Brooklyn, New York
445 posts, read 1,245,990 times
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My husband and I have slightly different philosophies on this issue. Before we were retired, I was the one who spent more freely, but now that we are retired, he's of the "you can't take it with you" mentality. We're comfortable. Our house is paid for and we also own an investment property. We have retirement plans, but no pensions. We have a son and a daughter, both in their 20's. Son has a good job, daughter is searching. I want to make sure we are able to leave money to them because it's a tough old world these days. I inherited about $1.5 million from my mother several years ago and I want to pass on as much as possible to the kids. Barring some unforeseen circumstances, I think we have enough money for a comfortable retirement and to be able to leave money to our children. I have an inherited IRA from my mother and my financial advisor suggested I could take out more than the MRD but I would prefer not to. I just really want to keep money in place for the kids so they have a good life.
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