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Allow lots of debt in the final years?
Old 09-16-2009, 02:26 PM   #1
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Allow lots of debt in the final years?

Why not let failure be a large amount of debt instead of a portfolio value of $0?

We have seen some threads about aging parents being well-behind the 8-ball when it comes to credit card debt, so why not let FIRECalc allow you to have a net worth or ending value well-below zero?

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Old 09-16-2009, 06:46 PM   #2
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In an earlier thread I eluded to this when I mentioned that debt was, also, something you can't take with you. I have, since becoming aware of that insight, been adjusting my retirement plan. I feel much better now.
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Old 09-16-2009, 06:52 PM   #3
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If death and debt occur together, are your heirs liable? If not, this could be a great strategy.

But I'm still wondering who's going to lend you big bucks at age 90 unless they think they can get it back!

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Old 09-17-2009, 07:19 AM   #4
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I couldn't live with myself if I died deeply in debt.
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Old 09-17-2009, 11:21 PM   #5
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Quote:
Originally Posted by LOL! View Post
Why not let failure be a large amount of debt instead of a portfolio value of $0?

We have seen some threads about aging parents being well-behind the 8-ball when it comes to credit card debt, so why not let FIRECalc allow you to have a net worth or ending value well-below zero?

Firecalc does allow negative ending portfolio values which would be the equivalent of debt, so go at it.......
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Old 09-18-2009, 03:18 AM   #6
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My DS(ister) had a book a few years ago. It suggested that your life and money should run out at the same time. On the cover was the statement "the last cheque you should write is to the undertaker and ideally it should bounce".

This could should work for DS who has no kids to leave anything to or anyone else who would worry about a BK estate.
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Old 09-18-2009, 10:06 PM   #7
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On somewhat of a tangent, I thought of another strategy last year. I had about $880,000 in unsecured credit lines, and realized I could max those out, head to some nice central american country, and live the rest of my life there. Since the cash advances would be unsecured, I figured there was nothing they could do except call, and getting a new unlisted number would fix that easily.

I didn't do it mainly because I wasn't 100% sure it would work, I'd feel guilty as all get out, and it would be a lousy example for my kids. Other than that, though...

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Old 09-19-2009, 05:59 AM   #8
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My DS(ister) had a book a few years ago. It suggested that your life and money should run out at the same time. On the cover was the statement "the last cheque you should write is to the undertaker and ideally it should bounce".
If you're by yourself there is no reason not to do that, except that I would prefer my last check not bounce. My mother also said the idea was to run out of time and money at the same time, but the problem is that one rarely knows precisely when "The End" is.

Of course, if one has kids, spouses, or SOs that you care about that changes the equation. In my case, DW is statistically likely to live much longer than I will and I'd very much prefer that she never has to develop a taste for Alpo.
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