Live for today

[W2R]

Wow... you are a spendthrift!

Hurry return it and use a pot instead... lest you have no money for the rice to cook in it 30 years from now!

Hey, I'm trying! I don't like travel, so what is a girl to do?

Let the good times roll, that's what! As soon as I get my rice cooker, I am ready to live for today and have great rice whenever I can afford the calories. But I did compromise in that "live for today" philosophy... I bought two types of rice yesterday in case the price goes up before the rice cooker arrives.

 

[haha]

For example, all the careful savers in Japan. If your home and family were just washed away, retirement savings would be the least of your worries.

At the extremes, this is sometimes true. But overall, when difficulties strike, resources are important, and ready money as well as income and skills are resources.

Another comment-the idea that it would take an extreme catastrophe (essentially positing something beyond financial mitigation) I believe is false. Comforting, but false. Our "SWRs" and other measures of safety are based on a narrow range of possibilities, and we are truly unaware of all the economic things that could blow us out of the water.

It is natural to truncate the database from which we draw our expectations. I would imagine the picture would be quite a bit hazier if the Weimar inflation were included, or any of of several episodes of extreme inflation in Asia and South America during the post WW2 era.

Ha

 

[rescueme]

But your description has some additional implications. Risk mitigation (and peace of mind) has a cost to you... even if you do not spend it. You forgo using your resources and actually spend it at the end... it goes to uncle sam, heirs, or charities. Which is fine... but it is locked up and will be spent (just at the end).

If one has a disabled adult "child" that will not be cared for by any family member, and has gone through the "public system" for support, but that avenue has failed, the parents have little alternatives but to make up a private plan, consisting of lawyers, investment managers, and commercial trusts to see to his needs after his parents have passed on.

The price (in our situation? $2M). Sometimes you can't "spend till the end". For those that can? I envy you...

Luckly, we've met our plan (both for my DW/me, along with our son). That "stash" is peace of mind, in our case.

Yes, I know we are different in our needs/desires; however, isn't everybody? And the money will be spent after we're gone; either for the care of our son, or our named charities after he passes (and there is anything left).

 

[youbet]

But I feel I have a relatively good understanding of risk (in this context). I intend to enjoy our money. However, that does not mean I intend to waste it or inadequately mitigate our risk.

Yet, despite your "relatively good understanding of risk," you're likely spending too much or too little relative to your portfolio and only the passage of time with predictions turning to fact will tell the story. This is true for all of us of course.

Whether a WR of 2%, 3%, 4%, 5% or whatever would have been ideal, we'll only know after time passes and history has revealed reality. People seem to be nervous with this concept, that they can't know today with certainty, what tomorrow will bring, but that's the way it is!

So pick some reasonable numbers based on history and your personal forecast of the future and live life and enjoy.

 

[youbet]

If one has a disabled adult "child" that will not be cared for by any family member, and has gone through the "public system" for support, but that avenue has failed, the parents have little alternatives but to make up a private plan, consisting of lawyers, investment managers, and commercial trusts to see to his needs after his parents have passed on.

The price (in our situation? $2M). Sometimes you can't "spend till the end". For those that can? I envy you...

Luckly, we've met our plan (both for my DW/me, along with our son). That "stash" is peace of mind, in our case.

Yes, I know we are different in our needs/desires; however, isn't everybody? And the money will be spent after we're gone; either for the care of our son, or our named charities after he passes (and there is anything left).

Your situation is similar to ours rescueme, only we're setting up funds for a challenged grandson.

Like you, we found that only going ahead and actually setting funds aside allowed us to begin to feel comfortable spending the residual on ourselves. Our plans just seemed so much in flux without taking a stab at a reasonable commitment and executing it.

 

[kumquat]

If one has a disabled adult "child" that will not be cared for by any family member, and has gone through the "public system" for support, but that avenue has failed, the parents have little alternatives but to make up a private plan, consisting of lawyers, investment managers, and commercial trusts to see to his needs after his parents have passed on.

The price (in our situation? $2M). Sometimes you can't "spend till the end". For those that can? I envy you...

Luckly, we've met our plan (both for my DW/me, along with our son). That "stash" is peace of mind, in our case.

Yes, I know we are different in our needs/desires; however, isn't everybody? And the money will be spent after we're gone; either for the care of our son, or our named charities after he passes (and there is anything left).

It's tough, tougher than what I've had lately. Just be glad that you're in a position to do something. In my case, while I have financial resources, they are totally useless for the things life throws at us (and I bitch about). Hang in there. Maybe, just maybe, I'm the lucky one.

 

[kumquat]

SLE stands for Systemic Lupus Erythematosus. It is often spoken of as Lupus, which is Latin for "wolf", and symbolizes how this autoimmune disease can creep up on you. It has many diverse symptoms. Here's an informative link:

Systemic Lupus Erythematosus (SLE) Symptoms, Treatment, Causes, Signs and Diagnosis by MedicineNet.com

Thanks for answering. We've been away spending our kids inheritance.

 

[chinaco]

Yet, despite your "relatively good understanding of risk," you're likely spending too much or too little relative to your portfolio and only the passage of time with predictions turning to fact will tell the story. This is true for all of us of course.

...

So pick some reasonable numbers based on history and your personal forecast of the future and live life and enjoy.

My diatribe on risk was just to make a point.

You have the wrong impression if you think I spend a lot of time worrying about what might go wrong. No more than anyone else (expect for those that completely ignore it). I take basic steps that are commonly know by reading the most rudimentary literature on the topic. That is what give me peace of mind!

I work in an industry that deals with risk and financial services... but very few people I work with have any clue about it. And many them have been trained. transitioning the general concepts to application and especially application for oneself is more complex and difficult that many think.

If they do something to mitigate risk... and the world does not come to an end, they have remorse because they think they left something on the table. If on the other hand, if they did not mitigate the risk and something bad happens and they lose... they feel like a fool.

Anyone can look back on decisions (after the fact) with the benefit of knowing exactly what happened and conclude that they could have made a better decision.

Here is a common one for all of us... LTC. Look at this article. Assume this is accurate (I have not checked it out to be factual)... we insure our homes, we insure our cars and for liability, but the chance of experiencing financial ruin is smaller for those situations than LTC. .... not that I want to move this discussion in that direction... rather to make a point.

http://www.longtermcareinsurancetree.com/ltc-basics/the-chances-of-needing-long-term-care.html

I agree with the sentiment of your last comment... balance is the key! Balance in understanding the risks and potential impact, emotions, and the decisions. Then... move on!

 

[devans0]

Assume this is accurate? I will have to dig again to find the stats but I have read much MUCH lower chances than 1 out of 2 that this LTC seller quotes. It looks like a cherry-picked stat at best.

 

[chinaco]

Assume this is accurate? I will have to dig again to find the stats but I have read much MUCH lower chances than 1 out of 2 that this LTC seller quotes. It looks like a cherry-picked stat at best.

Trying to make a point.

Those stats were from a study from the The National Academy of Elder Law Attorneys

Here is another one:

The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older.

FCA: Selected Long-Term Care Statistics



I suppose you could assume that it is all a big deception and ruse perpetrated on unwitting consumers.

 

[Danmar]

There was a TV show back when I was but a mere lad called "The Millionaire" in which a guy named Tipton did something similar... every week.

I used to watch that show when I was a kid. His name was John Beresford Tipton I think. I don't think you ever saw him though-only his agent. Surprised they haven't redone this concept?

 

[TromboneAl]

I used to watch that show when I was a kid. His name was John Beresford Tipton I think. I don't think you ever saw him though-only his agent. Surprised they haven't redone this concept?

Didn't he have a mustard seed in a tube or something?

 

[meierlde]

Kidding aside, be sure to check the amount of precipitation in the aforementioned state during the previous fall and winter. Unless there has been significant rainfall, which seems to be only about 1 season out of every 4, you will be very disappointed in what you see along the roadsides come Spring.

Very true due to the extremely dry winter this year there are no flowers on the road sides in the Hill country this year. Last year there were more flowers than I had ever seen, even on my property (such that I hated to mow the lawn and the flowers in the process).

 

[GregLee]

Here is another one:

The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older.

FCA: Selected Long-Term Care Statistics

That is a peculiar statistic. If I'm 65, I'm interested in my own lifetime probability of being disabled, not that of all those 65 and older. Also, I tried to look up the web source given for this statistic, and found that the page has disappeared. (It might be in the AARP document here: http://assets.aarp.org/rgcenter/il/beyond_50_il_1.pdf .)

 

[BanDit1]

As Nike says "Just Do It"! I agonized over spending big bucks on a 2 week trip to Alaska last June with my brother and his wife. He was sick, so I decided to "Do It". He died in January at age 52. I am eternally grateful that my choice was to go. Screw the money.

 

[Sarah in SC]

So sorry for your loss Bandit, and grateful that you have such good memories of your last vacation with your brother.

 

[Moemg]

As Nike says "Just Do It"! I agonized over spending big bucks on a 2 week trip to Alaska last June with my brother and his wife. He was sick, so I decided to "Do It". He died in January at age 52. I am eternally grateful that my choice was to go. Screw the money.

So sorry about your brother !