Scott Burns: Stay safe on retirement spending

[BUM]

It seems to me that today's family financial matters are bigger than many of yesterday's small businesses.

It definately helps me to have DW in the loop. Two heads are better than one. I worry about either spouse that "just doesnt have the head for it". What happens if the planner dies first?

Good point BUM. I am trying to address that problem right now by updating my will, etc. to take the
pressure off those I might leave behind. Already it's
getting complicated, and of course the attorney's
meter is running which I hate. For example, he says
"Who is going to run the company if you are gone?"
Excellent question. I can do it before breakfast. Someone coming in cold would be lost, at least for quite a while. Then, there is the problem of how to divide
up the corporation (I own 100% now). When I wrote my own will, I was just going to let my heirs/executor
deal with all this stuff. My DW convinced me that was pretty
inadequate.

JG

[indymom]

What does an executor usually do? Just carry out the will's requirements, or do they actually have to do planning and/or decision making?

[Michael]

An executor is also responsible for paying all back taxes and other debts from the estate. If the execoutor makes a mistake, he is personally liable for the taxes and debts. The IRS will take your assets if you distribute estate assets to beneficiaries before all taxes are paid.

[BUM]

Being the executor of a small estate can have its moments. Esp. when the relatives come calling.

Michael is right about setteling the debts of estate. In my case we got all dad's mail forwarded to me and waited for any bills or statements to show up.

It was a small estate so there were no real surprises. OTOH if it was a large estate, I'd get an attorney and/or a CPA involved and pay them to handle the details AND the relatives.

BUM

[mark]

I've tried to interest my wife in our long term family finances. I think its a case where she will listen to what I say, but has no interest in reading anything about it herself. I basically have a 'cheat sheet' that shows what I've read and what our expectations should be for future returns and withdrawals. Plus added pages with monthly expenses and accounts. At least it might prevent someone giving her too high expectations for what our SS, pension, and investments will support.

She will fill out the tax forms each year while I sort through fund forms. Plus she does computer support and mows the lawn (riding mower). I have to weedeat.

[Martha]

Quote:

I have to weedeat.

I think your food budget is too tight.

[Nords]

Quote:

I think your food budget is too tight.

... and then there's that high-fiber diet...

[mark]

keeps me regular

[AltaRed]

Back to the theme of finances, I pretty much take care of all the finances, both short and long term. A combination of my strong desire to research investments and read investment materials and a bit of type A personality makes it that way. However, everything is on Quicken and every few weeks or monthly at most, I pull up some graphs and tables for DW and I to have a discussion about. We talk about current status of net worth, asset allocations and what is happening in the markets and with our investments.

She is aware of where all the accounts are. All except for RRSP's (Canadian versions of IRA's) and my company brokerage account for stock options are joint. I never make an investment decision without involving her in the discussion and on occasion, based on her input, we don't end up making that particular investment. All the documentation on Adjusted Cost Base, differentiation of her versus my investments (required in Canada since there is no such thing as a joint filing) is readily accessible for her to read and updated annually for access by an executor in event of either or both of our deaths.

She and I are almost completely compatible on spending habits and budgets and consequently we do not have a "written" budget that we follow. We have a single joint chequing account and one joint VISA credit card. She accesses the ATM as she pleases and pays off a few store credit cards she has in her name each month. We do a Quicken check every 6 months or so to see our rate of spend and collectively decide whether we should make adjustments on where the money is going.

Finances and money is the single most important thing where we don't have any arguments at all.