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Old 03-28-2015, 09:47 PM
 
Location: California
378 posts, read 360,675 times
Reputation: 336

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I hear a lot of people make plans ahead of time to leave their loved one's a nice inheritance. But I am in the camp of folks who like the idea of living it up in my retirement years even to the point of one day considering a reverse mortgage.

Maybe this is being stingy or maybe it's a desire for the loved one's to learn to be self sufficient. What's your thoughts on this?
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Old 03-28-2015, 10:01 PM
 
Location: Las Vegas
13,886 posts, read 25,311,688 times
Reputation: 26362
It's your money. Do exactly what you want to do with it!
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Old 03-28-2015, 10:07 PM
 
Location: Midwest
1,469 posts, read 859,536 times
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We don't have children but we do have 2 nephews and 2 nieces. We tend to agree with you up to a point...We also may reverse mortgage if we need to and it is financially in our best interest (after much research when the time comes)...We are not blowing it just for the sake of spending. We are trying to keep costs down, within reason, so if we live longer than the norm we will have enough to last to be 100. We are not just sitting home, however, we still enjoy our boat at the marina in summer and our snowmobiles in winter and there are additional costs for the "toys". That being said, no one will get anything if we feel they are not interested in us personally as we age. (Treat us well and we will be happy to leave what is left to you, treat us poorly and we will leave it all to the dog!!!)
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Old 03-29-2015, 12:42 AM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
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There are lots of variables in this. Are the heirs (adult children usually) pretty well fixed, i.e., successful with good continued earning potential? Are there things the elders really want to do with the money to enhance their enjoyment of life? Are there charities that the elders really care about that they want to consider?

Do the elders wish to create life-long resentments among their children? If so, don't leave them equal amounts. Is one child almost guaranteed to blow through the money in stupid ways? (To me that would be an argument for living it up).

Or, one could split the difference. That is, one could intend to leave an inheritance without being concerned to maximize the amount and go ahead and spend without going hog wild.
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Old 03-29-2015, 01:05 AM
 
13,316 posts, read 25,550,246 times
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You don't owe nuthin' to nobody. I get so weary of people searching their memories for some/any blood relative (not that the OP is doing that) but not having the idea that you can leave whatever you want to whomever you want, or nothing to no one.

I think it's incredibly generous is someone wants to, say, set up a college fund for a grandchild or help a grown child out (maybe the better way would be an annual tax-free gift). But we are not English lords and we don't have a dynasty to provide for.

It's quite unattractive to me how much grown people are looking forward to their presumed inheritances. I see this in people who do have good relationships with their elders, but is is still too easy to get greedy. Also, it seems easier for people to coast along when they assume they're getting a nice chunk of change.

I'm fortunate that my parents didn't have a pot to pee in, never mind anything to leave. Maybe I would have struggled with being nicer to my toxic mother is she had a few bucks, and I don't think that would have been exactly admirable.
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Old 03-29-2015, 04:15 AM
 
71,511 posts, read 71,674,131 times
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the fact is depending how you are generating your retirement you usually get both by default.

if you are on your own with no pension and have to generate a 3 or 4% income stream inflation adjusted from your portfolio to go with ss ,that number is based on the worst conditions ever.

that being the case there is plenty of slack in the plan since there has to be so anything better than worst case scenario's will leave lots more left over.

running my numbers in firecalc show that there is an 80% chance I will die with more than I even started with if markets , rates and inflation are just average.

since we don't know how things will be until at least 15 years through a 30 year retirement most folks may take an extra trip or so but usually the lifestyle die is cast and it just goes into the legacy bucket.
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Old 03-29-2015, 05:17 AM
 
Location: Colorado Springs
4,833 posts, read 4,947,484 times
Reputation: 17302
Quote:
Originally Posted by kauailover View Post
I hear a lot of people make plans ahead of time to leave their loved one's a nice inheritance. But I am in the camp of folks who like the idea of living it up in my retirement years even to the point of one day considering a reverse mortgage.

Maybe this is being stingy or maybe it's a desire for the loved one's to learn to be self sufficient. What's your thoughts on this?
I'm in the spend and enjoy camp. Leaving money creates unintended consequences.

When I was in college, way back in 1967, I had a room mate who knew that he would inherit $2M from his Grandmother when he turned 21. That's like $20M today.

That guy became the biggest screw off I've ever known.

His attitude was "Why work, I've got it made." He received $200 per month from his family for expenses and he was usually broke.

As for me, I survived on $5 per week and I usually had money left over.

I lost track of the guy but I bet that he's dead by now.
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Old 03-29-2015, 06:19 AM
 
Location: S. Nevada
851 posts, read 851,596 times
Reputation: 1048
Whatchu going to do if you blow through most of your money and then serious life extending medical treatments become available?
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Old 03-29-2015, 06:22 AM
 
Location: Colorado Springs
4,833 posts, read 4,947,484 times
Reputation: 17302
Quote:
Originally Posted by jayway View Post
Whatchu going to do if you blow through most of your money and then serious life extending medical treatments become available?
The Black Pill
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Old 03-29-2015, 06:24 AM
 
71,511 posts, read 71,674,131 times
Reputation: 49088
everyone always has some exit plan , until the crap hits the fan. then they cry like a baby or are to disabled to even have an exit plan.
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