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@Robyn55 : Really? Your 97 year old Dad has over a million invested and you say No when HE wants to spend HIS money because he might need it? I've always liked your advice and posts, but thats a bit extreme, even for me. I intend to enjoy as much of my money as possible before I die.
I completely agree. Hence depending on where I retire to will determine the size of my toy. LOL the wife and I have discussed it and if the boat I buy costs 200k so be it. It is our time to have fun and mine in going to be associated with water and speed.
@Robyn55 : Really? Your 97 year old Dad has over a million invested and you say No when HE wants to spend HIS money because he might need it? I've always liked your advice and posts, but thats a bit extreme, even for me. I intend to enjoy as much of my money as possible before I die.
Perhaps I didn't make myself clear. My father can spend anything he wants on himself and he won't get any objection from me. In fact - he has a Depression era mentality about spending - and I often have to kick him to spend money on himself when it comes to some things. Like restaurants and clothes and new sheets. Although not others. Like TVs and Comcast and computers . Also - I have never objected to his buying any expensive zippy mobility equipment he needs/wants (motorized wheelchair - electric scooter). And I didn't care whether Medicare paid for whatever he wanted (Medicare is stupid when it comes to paying for durable medical equipment). Just told him to buy whatever he wanted. Perhaps it's a male/female kind of difference when it comes to spending? Note that he's bought 2 new cars (Infiniti) since he moved here 10 years ago as well (he always wants his cars to be on warranty).
What I object to is the notion of giving away substantial amounts of money to people or charities when he's alive. Five figures or more. If he wants to give a few $500 gifts to his grandchildren every year - I'm ok with that. But I'm not ok with his paying off their college/graduate school debt now. That just seems prudent to me. The beneficiaries in his will (including me) can wait until he's dead to collect IMO.
Note that managing money for someone my father's age is a bit challenging. Even though he was diagnosed with pancreatic cancer 6 months ago and given 6 months to live - well that's just not going to happen best I can tell. I have my own personal theory that when people get as old as he is - everything slows down - a lot - including disease processes. After you deal with any acute issues (he had a biliary stent procedure to deal with the jaundice caused by his small tumor) - you kind of get back to normal. Along these lines - note that I told my father to go into the Mayo concierge practice here when my husband and I did - which costs $6k/year. He is also vain about his teeth and routinely spends mid-5 figures/year on caps/bridge work and the like. So I am clearly encouraging him to spend money on himself. And - even though my father says he'd rather die than move into the best SNF we have here - well I don't believe him. Because he has a strong will to live. And we will try to do the best possible with home care where he lives now if he gets sicker - which might possibly cost more than care in an SNF if it gets to the 24/7 level - because that is what he wants.
IOW - I don't know how long my father will live - or what it will cost down the road. I do know that I will have enough to pay for whatever he might want/need regardless of the investment environment unless he lives to be 120 or so (although I wouldn't rule out 105). Unless he were to give away large sums of money now. Which is what I object to. I like having that cushion. Robyn
I completely agree. Hence depending on where I retire to will determine the size of my toy. LOL the wife and I have discussed it and if the boat I buy costs 200k so be it. It is our time to have fun and mine in going to be associated with water and speed.
My father had boats for most of his life. He liked to fish (which is why my parents moved to south Florida). Sold his last boat when he was in his 80's.
The best investment my parents ever made was the house where they kept the boat. A house in Lighthouse Point Florida on a deep wide canal with no fixed bridges to the ocean. They bought it for $66,000 in the 60's - and my father sold it after my mother died in 2005 for $1.5 million. After the bust - the house sold for $675,000 after being foreclosed. Would have been a very good buy for a boater at that point in time. Guess the moral of the story is a fair amount of waterfront property is a better investment than the boats you keep there. Robyn
My father had boats for most of his life. He liked to fish (which is why my parents moved to south Florida). Sold his last boat when he was in his 80's.
The best investment my parents ever made was the house where they kept the boat. A house in Lighthouse Point Florida on a deep wide canal with no fixed bridges to the ocean. They bought it for $66,000 in the 60's - and my father sold it after my mother died in 2005 for $1.5 million. After the bust - the house sold for $675,000 after being foreclosed. Would have been a very good buy for a boater at that point in time. Guess the moral of the story is a fair amount of waterfront property is a better investment than the boats you keep there. Robyn
Agreed about your dad and his investment. I am though realistic about my next home. I will be near water. I would prefer the ocean but I doubt that will happen. I will accept a river system or a lake but it will need to be one that I can keep the boat in the water. I don't plan on carting that thing around on a trailer. Short of that well we will see how it goes.
One interesting view was that if you go back and look at the historical average p/e ratio you would have to cut about 1/3 off todays values as well as12% off the value of bonds to keep them from being over priced.
That works out to a draw rate of 3.10% from todays value of your assets
One interesting view was that if you go back and look at the historical average p/e ratio you would have to cut about 1/3 off todays values as well as12% off the value of bonds to keep them from being over priced.
That works out to a draw rate of 3.10% from todays value of your assets
It is only to see if your fund will last as long as you plan. On mine I think it was fairly conservative and I was only able to take about 3% with an estimate of 4% growth per year to last 30 years.
Now I don't think I will have a constant amount each month. I think once a year I will re-evaluate my fund and make an informed decision each year for the following year based on predicted need and current balance.
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. Also - I have never objected to his buying any expensive zippy mobility equipment he needs/wants (motorized wheelchair - electric scooter). And I didn't care whether Medicare paid for whatever he wanted (Medicare is stupid when it comes to paying for durable medical equipment). Just told him to buy whatever he wanted. Perhaps it's a male/female kind of difference when it comes to spending? Note that he's bought 2 new cars (Infiniti) since he moved here 10 years ago as well (he always wants his cars to be on warranty).
(although I wouldn't rule out 105). Unless he were to give away large sums of money now. Which is what I object to. I like having that cushion. Robyn
