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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 12:31 PM   #61
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Re: US News Article: Socking Too Much Away

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Originally Posted by Jay_Gatsby
I guess I don't understand what's wrong with dying and leaving an estate worth far more than when you retired.* If you allocate your money properly so as to avoid taxes and spendthrifts, your money can continue to benefit generations of your family.* This is how one provides opportunities to one's family that aren't possible to achieve during one lifetime.* Sure, you learn a great deal about money by working your way through high school and college, but wouldn't it be better in some ways for your kids to never worry about paying for an education?
I'd rather benefit my kids the Buffett & Gates way.

If my kid never had to worry about paying for an education then it wouldn't be worth anything to her. She wouldn't learn anything, either.

Military academies are free too, but she'll pay dearly for that education!
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 01:07 PM   #62
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Re: US News Article: Socking Too Much Away

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Originally Posted by Jay_Gatsby
You have no nieces, nephews, cousins, etc... to whom you could leave some of your money?*
True...

We have one son (disabled) who cannot have more than $2K in resources (else he would lose his SSD/Medicare.

Not everybody has "blood relatives"....

- Ron
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 01:13 PM   #63
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Re: US News Article: Socking Too Much Away

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Originally Posted by Ron'Da
True...

We have one son (disabled) who cannot have more than $2K in resources (else he would lose his SSD/Medicare.

Not everybody has "blood relatives"....

- Ron
Have you looked at a special needs trust for him?
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 01:20 PM   #64
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Re: US News Article: Socking Too Much Away

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Have you looked at a special needs trust for him?
Already have.* Our forecast residual estate is estimated to be in the multiple of 1000 of what he can have, under the "rules" (for those of you that don't know, a SNT is only to be used for "incidentials" for disabled folks - like clothes, burial, and other things.* Not "normal lifestyle" things).* He will never be married, have kids, home, car, etc, but he will have enough under his government benefits (plus our supplemental through the SNT) to live in the manner in which he remains "safe & secure".

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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 01:28 PM   #65
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Re: US News Article: Socking Too Much Away

Quote:
Originally Posted by Jay_Gatsby
I guess I don't understand what's wrong with dying and leaving an estate worth far more than when you retired.* If you allocate your money properly so as to avoid taxes and spendthrifts, your money can continue to benefit generations of your family.* This is how one provides opportunities to one's family that aren't possible to achieve during one lifetime.* Sure, you learn a great deal about money by working your way through high school and college, but wouldn't it be better in some ways for your kids to never worry about paying for an education?
Couldn't agree more. In America we are so Puritanical about work. Remember all the great scientific discoveries of the 17th and 18 centuries?* Many of them were made by "gentlemen" who had no need to keep food on the table, so they could follow wherever their excellent imaginations took them. Same story with the British and French adventurer/explorers who mapped Africa.

Work may help a dull person avoid alcoholism or total dissipation, but it also keeps many interesting and inventive people busy with stuff that mostly doesn’t interest them, and which won’t have much long term effect on the world.

Ha
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 01:57 PM   #66
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Re: US News Article: Socking Too Much Away

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Couldn't agree more. In America we are so Puritanical about work. Remember all the great scientific discoveries of the 17th and 18 centuries?* Many of them were made by "gentlemen" who had no need to keep food on the table, so they could follow wherever their excellent imaginations took them. Same story with the British and French adventurer/explorers who mapped Africa.
Unfortunately, only those who were born to money got to do this. At least today, if you can write up grant requests you may have the chance even if you don't come from money.

One of our attorneys is a fabulous writer. He has had short stories and poetry published. He gets up in the wee hours of the day to write. But he has to work to make a living. Who knows what he could write if he had more time.

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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 04:27 PM   #67
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Re: US News Article: Socking Too Much Away

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Originally Posted by Nords
I'd rather benefit my kids the Buffett & Gates way.

If my kid never had to worry about paying for an education then it wouldn't be worth anything to her. She wouldn't learn anything, either.

Military academies are free too, but she'll pay dearly for that education!
Too simplistic of an answer, although it might apply in your particular case. Were this the case for the majority of people, we might as well throw out all of the 529 Plans that litter the educational saving landscape. Obviously since it isn't, the best way to ensure that an education actually means something to a child who doesn't have to pay for school is to condition tuition payment on the pursuit of particular courses of study. Alternatively, you could have a trustee (or series of trustees) possessing the requisite wisdom to guide your future generations in selecting majors and careers. There are all sorts of mechanisms you can design to ensure your money is not taken for granted or abused.
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 04:33 PM   #68
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Re: US News Article: Socking Too Much Away

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Originally Posted by HaHa
Couldn't agree more. In America we are so Puritanical about work. Remember all the great scientific discoveries of the 17th and 18 centuries? Many of them were made by "gentlemen" who had no need to keep food on the table, so they could follow wherever their excellent imaginations took them. Same story with the British and French adventurer/explorers who mapped Africa.

Work may help a dull person avoid alcoholism or total dissipation, but it also keeps many interesting and inventive people busy with stuff that mostly doesn’t interest them, and which won’t have much long term effect on the world.

Ha
Although we're not in the 17th and 18th centuries anymore, the idea of the wealthy advancing the Arts and Sciences is still quite relevant today. True, there are numerous spendthrifts who change majors (and even colleges) like underwear, but there are quite a few who show an aptitude in an area for which nobody wants to pay very much money.
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 04:42 PM   #69
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Re: US News Article: Socking Too Much Away

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Although we're not in the 17th and 18th centuries anymore...
Well Damn! Now you tell me.

Ha
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Re: US News Article: Socking Too Much Away
Old 08-14-2006, 04:58 PM   #70
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Re: US News Article: Socking Too Much Away

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Too simplistic of an answer, although it might apply in your particular case.
Yeah, I see that word a lot around my name...

Quote:
Originally Posted by Jay_Gatsby
Were this the case for the majority of people, we might as well throw out all of the 529 Plans that litter the educational saving landscape. Obviously since it isn't...
The word "obviously" always makes my antennae twitch, almost as much as the phrase "government studies prove". I think 529s reflect their "tax-free!" marketing more than they reflect their financial worth.

But we don't use a 529 either. Too expensive & too restrictive for the putative benefits. Flexibility is more important to us.

Quote:
Originally Posted by Jay_Gatsby
... the best way to ensure that an education actually means something to a child who doesn't have to pay for school is to condition tuition payment on the pursuit of particular courses of study. Alternatively, you could have a trustee (or series of trustees) possessing the requisite wisdom to guide your future generations in selecting majors and careers. There are all sorts of mechanisms you can design to ensure your money is not taken for granted or abused.
Gosh, that sounds harsh. I thought we'd just save money to pay for the state tuition to a bachelor's. If the kid wants a "better" school, or to pursue a graduate degree, then she's welcome to figure out a way to fund her higher aspirations. That'll certainly help her determine how meaningful they are to her. And if the "easy" way out (student loans) becomes a crippling burden down the road, well, I suppose we could step in with the gifting. But I'd rather not be the deus ex machina reaching out to touch my kid's life.

If our kid goes to a military academy, rendering most of our college savings moot, then I'm not sure what we'll do with the windfall. I doubt we'll do what the other Academy parents seem to have been doing for their young 'uns in the form of turbocharged Audis.
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