Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
inheritance
Old 10-31-2007, 06:58 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,030
inheritance

I was talking with a few friends recently and they mentioned they wanted to spend their money and not leave an inheritance .So how do you do it ? If you spend more than 4% you may run out of money but if you don't you'll probably end up with a large amount to pass on .Do you suddenly take up expensive habits at 80 ?Do you spend earlier and hope that your kids will take care you ?
__________________

__________________
Moemg is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-31-2007, 07:22 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,871
Buy the maximum COLAed annuity? Or pre-plan funeral with all leftover proceeds to your favorite funeral director? Stockpile hemlock and spend until it is gone?
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 10-31-2007, 09:14 PM   #3
Thinks s/he gets paid by the post
Htown Harry's Avatar
 
Join Date: May 2007
Posts: 1,516
Not sure how I will do it, but my dream plan has the check to the undertaker bouncing.
__________________
Htown Harry is offline   Reply With Quote
Old 10-31-2007, 09:28 PM   #4
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,091
Quote:
Originally Posted by Moemg View Post
I was talking with a few friends recently and they mentioned they wanted to spend their money and not leave an inheritance .So how do you do it ? If you spend more than 4% you may run out of money but if you don't you'll probably end up with a large amount to pass on .Do you suddenly take up expensive habits at 80 ?Do you spend earlier and hope that your kids will take care you ?
Apart from purchasing an annuity - the simple fact of the matter is, it's impossible to (unless you enjoy a goblet of hemlock, as another poster put it).

Due to the randomness of the stock market and future gains/losses, you have no way of knowing what withdrawing x% this year will do. And that is completely unrelated to the longevity variable.

So you have two variables (market returns and lifespan), completely uncorrelated (unless you have so much stress from running out of money that you have a heart attack and keel over?), that are (for the most part) unpredictable. Sure, you might guess that long-run average returns for the market will be positive, but as many studies have pointed out, certain downturns can result in portfolio annihilations if you don't stick to a 4% of current portfolio withdrawal. Since you have no idea ahead of time when those downturns will occur, you can never plan to fully fund everything until the last person dies.

Or, if they want to spend down to the last $200,000 or so, they could call up the cryogenic companies, go into deep freeze for a cool $100,000 or so, invest the $100,000 left, and hopefully the $100,000 will grow into a sizable stash if they don't get dumped in the ocean in the middle of the night buried in a shallow grave in the middle of nowhere when they perfect the thawing method and thaw them out.
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 11-01-2007, 09:29 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,871
Quote:
Originally Posted by MooreBonds View Post
................Or, if they want to spend down to the last $200,000 or so, they could call up the cryogenic companies, go into deep freeze for a cool $100,000 or so, invest the $100,000 left, and hopefully the $100,000 will grow into a sizable stash if they don't get dumped in the ocean in the middle of the night buried in a shallow grave in the middle of nowhere when they perfect the thawing method and thaw them out.
Say, wasn't someone looking for a post retirement business idea?
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 11-01-2007, 09:34 AM   #6
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
Leave your estate to charity?

Coach
__________________
Coach is offline   Reply With Quote
Old 11-01-2007, 10:01 AM   #7
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,824
Quote:
Originally Posted by Coach View Post
Leave your estate to charity?
I have never counted on an inheritance, and I used to joke to my friends that for all I knew, my parents (very old fashioned, conservative Presbyterians) could have gone nuts and left everything to the Hare Krishnas or something.

Then someone told me that the Hare Krishnas don't even exist any more!

I am still not counting on anything unless/until I have it in hand (which I might at some time in the near future, but then who knows). That way I will never be disappointed.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 11-01-2007, 11:04 AM   #8
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,372
Even leaving it to charity would still be leaving an inheritance. I guess in their wills they could specify that any remaining assets be cashed out and the money buried/burned along with them?
__________________
Bestwifeever is offline   Reply With Quote
Old 11-01-2007, 11:09 AM   #9
Full time employment: Posting here.
kaudrey's Avatar
 
Join Date: Feb 2006
Location: Alexandria, Va
Posts: 941
My grandmother did it by spending 13 years in a nursing home with Alzheimer's. Nursing home took all the money until Medicaid kicked in. Didn't have anything but a few momentos and clothes when she died at 94.
__________________
kaudrey is offline   Reply With Quote
Old 11-01-2007, 12:29 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
I am not sure that anyone can (short of the hemlock suggestion) plan their deaths to the dollar. What difference does it make if you leave a few bucks to the kids, the cats (or even resurrect the hare krishnas), or the red cross. When you're dead , you'll probably NOT care.
We plan to live our lives the way we want (subject to the budget limits we have). If the kids get a little pocket money when we kick, so much the better ... but we are not sacrificing any of our hard earned retirement fun to do it. It turns out that they will get some of the left over, ... but that's because of our LBYM habits over the years as well as now. I think that as we get more comfortable in FIRE, we will start to spend it down.... especially if the 'actuals' exceed the 'planned'. I could always learn to sail and buy a boat (if only I could get DW to learn how to swim and convince her that we should live on a boat for a few years).
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 11-01-2007, 12:36 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Quote:
Originally Posted by Moemg View Post
I was talking with a few friends recently and they mentioned they wanted to spend their money and not leave an inheritance .
From where I sit your friends have a peculiar goal. Is this supposed to be a final slap from the grave to children who have somehow disappointed them?

I am superstitious enough that even if I didn't love my kids, (which I do very much) I would want to treat them well so that I would have someone thinking some good thoughts about me, maybe even burning some candles for me, as I try to navigate the great divide.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 11-01-2007, 04:00 PM   #12
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,675
The Hare Krishna movement (International Society for Krishna Consciousness) is still very much alive.

Besides, there are a billion (give or take a few million) Hindus who are devoted to Krishna - so don't count them out yet.
__________________
walkinwood is offline   Reply With Quote
Old 11-01-2007, 04:05 PM   #13
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,824
Quote:
Originally Posted by walkinwood View Post
The Hare Krishna movement (International Society for Krishna Consciousness) is still very much alive.

Besides, there are a billion (give or take a few million) Hindus who are devoted to Krishna - so don't count them out yet.
Well, then that could still happen! I am sure my brother (executor of my late mother's estate) would have said something about it by now, though.

Well, one would hope he would have thought to mention it....
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 11-01-2007, 06:31 PM   #14
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
this must be on your friend's list of things to do before death (thing #100, bounce final check.) maybe it's just a continuation of my being lazy & non-goal oriented. maybe i should have made at least a shopping list once in my life (probably would have saved me a bunch of trips to the store). but i can't live like that. crossing things off my list is not what gives me sense of purpose.

i'm just not money-motivated. i didn't live to work to make money and i didn't retire to spend it. i find enough satisfaction just getting through the day.
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 11-01-2007, 06:35 PM   #15
Full time employment: Posting here.
Sandy's Avatar
 
Join Date: Dec 2006
Location: Florida
Posts: 855
Quote:
Originally Posted by Want2retire View Post
Then someone told me that the Hare Krishnas don't even exist any more!

We have a hare krishna group nearby - they show up in all of the parades.
__________________
I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
Sandy is offline   Reply With Quote
Old 11-01-2007, 07:02 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Quote:
Originally Posted by Sandy View Post
We have a hare krishna group nearby - they show up in all of the parades.
? we must be going to different parades... didn't see them at the St. Paddies day parade last time. Also been miss'n em (as in ... haven't seen them) at the airports.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 11-01-2007, 07:14 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,030
Quote:
Originally Posted by haha View Post
From where I sit your friends have a peculiar goal. Is this supposed to be a final slap from the grave to children who have somehow disappointed them?

.

Ha

No ,they really love their children but they feel they want to enjoy their money after they've educated their children.
__________________
Moemg is offline   Reply With Quote
Old 11-01-2007, 07:39 PM   #18
Thinks s/he gets paid by the post
Finance Dave's Avatar
 
Join Date: Mar 2007
Posts: 1,046
another option is a "flexible" lifestyle. Each year calculate the needs to live until your life expectancy. If you have more than this, spend it down to that level. If you have less, skip one of your vacations.
__________________
Finance Dave is offline   Reply With Quote
Old 11-01-2007, 08:00 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Quote:
Originally Posted by Moemg View Post
No ,they really love their children but they feel they want to enjoy their money after they've educated their children.
Sure, I understand that. I think I misunderstood the original post.
Quote:
I was talking with a few friends recently and they mentioned they wanted to spend their money and not leave an inheritance.
In the nature of things if one has a self funded retirement without using annuities, he/she is either going to come up short or have some left over.

The original quote sounded to me like two goals-one, spend money and two, not leave an inheritance. Say they set out to spend as much as they could without endangering their retirement, and without using annuities. They will either succeed and have what is to them a satisfying life, or fail and go broke. How much if any is left is kind of a residual of the interaction of many factors, rather than something that can be directly targeted.

As others have pointed out, if their goal is maximum predictable real lifetime income with no residual, short of suicide there is only one way- some selection of annuities probably including some or all with COLAs. Which IMO is not a bad solution for someone with this goal set. This could be more or less simulated for those who hate annuities by choosing a very long amortization of a TIPS portfolio-say until they are 110 years old- but it would likely pay out less during their lifetimes than the annuity option, and it would leave some at the end. Also it would present interesting management and income smoothing challenges, most strikingly re-investment risk.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 11-01-2007, 09:00 PM   #20
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
I received a small amount from my mother. I'm not expecting anything else from anyone.

I'm leaving most of what I have to various causes I've given to over the years.
__________________

__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Impending Inheritance - What to do! Jon Snow Hi, I am... 4 03-11-2007 12:31 AM
Anyone expecting an inheritance? laurence Young Dreamers 77 03-03-2007 03:42 PM
not only no inheritance... Khan FIRE and Money 10 12-31-2006 06:47 AM
Inheritance taxes farmerEd Other topics 3 06-21-2005 11:35 AM
My parents and their inheritance Jane Other topics 42 08-15-2004 10:23 AM

 

 
All times are GMT -6. The time now is 11:18 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.