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Old 08-30-2020, 08:35 PM   #41
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Having just gone through Alzheimer's with a dear friend who passed away last month after more than 10 years battling the disease, I will have a big stash to make sure I do not have to go through the agony of Medicaid he and his wife went through. I have no spouse, but I do wish to be in a position to afford a nicer place than the bottom dregs if I ever need assistance. I will be doing QCDs, but with no intention of trying to lower my stash before I die. Its more because I am a tightwad and don't want to pay the taxes on the RMDs. I do have kids and they and my favorite charity will split whatever is left over if anything when I die.
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Old 08-30-2020, 10:48 PM   #42
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Charity. Between covid and 27 years of ER, I will leave some on the table.

Heh heh heh - Plus ' a really really cheap SOB' in the early years of ER before I learned to loosen up.
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Old 08-30-2020, 10:54 PM   #43
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Originally Posted by Car-Guy View Post
Yep, but I'm not paying those (***** *******) a dime in advance. I'd like to spend it all before I go but in reality I know I'll be leaving well over a million and that's in the worse case... I've haven't scrimped on much of anything, especially in the past 40 to 50 years, but I told my DD to go the cheapest and easiest route possible for my final expenses. ex. No services, no casket and cremation in a cardboard/plywood box...
Cheapest would be to not claim the body, just remove the wallet
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Old 08-30-2020, 10:59 PM   #44
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I feel like for those of us who likely and lucky to have more than weíll need, it really comes down to the question of whether you get more joy from accumulation or from spending. As stupid as it sounds, I get more joy from watching the numbers on the spreadsheet grow than from buying expensive things I donít really crave. Hopefully thatíll make some charities very happy one day when they receive a surprise windfall from my estate.
Might be better to donate some now, so you know some of it went to the "right" spending.

It would suck to be in heaven, and find out the CEO spent it on redecorating his/her office with gold taps, or something like what happened to this generous fellow:

https://www.cnbc.com/2017/10/13/afte...-spending.html
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Old 08-31-2020, 01:42 AM   #45
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The problem with the 4% rule is that studies show that retirement spending goes down as you get older with the exception of healthcare expenses (nursing home). I donít religiously follow the 4% rule, more of a guideline. I have spent more but only if my investments are doing well.
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Old 08-31-2020, 03:43 AM   #46
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62, 14 years retired, no wife/kids.

I always considered 4% a general planning tool, not a real-time rule. I feel free to spend the dividends from my stock portfolio, which could be 3% at a market high or 8% at a market low, and have averaged around 4.5%. As they have grown 7-8% annually over the years I no longer spend all of them and am currently reinvesting about 1/4 of them to buy more stock, as I also get a great deal of enjoyment out of watching the numbers grow on the spreadsheet.
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Old 08-31-2020, 05:55 AM   #47
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62, 14 years retired, no wife/kids.

I always considered 4% a general planning tool, not a real-time rule. I feel free to spend the dividends from my stock portfolio, which could be 3% at a market high or 8% at a market low, and have averaged around 4.5%. As they have grown 7-8% annually over the years I no longer spend all of them and am currently reinvesting about 1/4 of them to buy more stock, as I also get a great deal of enjoyment out of watching the numbers grow on the spreadsheet.


It also provides cheap entertainment
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Old 08-31-2020, 06:13 AM   #48
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Originally Posted by teejayevans View Post
The problem with the 4% rule is that studies show that retirement spending goes down as you get older with the exception of healthcare expenses (nursing home). I donít religiously follow the 4% rule, more of a guideline. I have spent more but only if my investments are doing well.


+1. Also, oneís personal inflation rate can be less than the overall inflation rate by choosing substitutions.
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Old 08-31-2020, 06:14 AM   #49
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I have no kids so I guess my estate would be inherited by some distant relatives that I've never met. I spend well under 4% and don't plan to change that because spending more $$ doesn't make me any happier. When I do have a major expense, it's nice knowing that I don't have to worry about it.
Actually, I don't want my money going to far distant relatives, so I better get a will made and have it all go to some charities.
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Old 08-31-2020, 06:38 AM   #50
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Currently 60 DW 66. Fired eight years ago. No kids. Always planned on using the 4% rule but frankly old penny pinching habits die hard and weíve been around 3% of liquid assets each year of retirement. It is nice knowing we have lots of head room but irritating thinking we will probably die with huge savings. Nice for charity I guess.
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Old 08-31-2020, 06:54 AM   #51
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Iím in a similar situation. I do have estate documents that outline where assets are to go and charitable organizations are listed (subject to change in the future).

I maintain a mix of tax-deferred and tax-free money in retirement accounts. In a perfect world, the money going to charity will be largely tax-deferred (I would have never paid tax on it).
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Old 08-31-2020, 07:22 AM   #52
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I have no kids so I guess my estate would be inherited by some distant relatives that I've never met. I spend well under 4% and don't plan to change that because spending more $$ doesn't make me any happier. When I do have a major expense, it's nice knowing that I don't have to worry about it.
Actually, I don't want my money going to far distant relatives, so I better get a will made and have it all go to some charities.
+1 on the "spending more money doesn't make me any happier"
Yes get the will done.
My wife and I have not finished our will either and I need to get this done.
I am 61 DW is 64. She has one brother who is married but had no kids either.
I have 5 brothers and sisters all of whom are married with kids.
I think I have 13 nephews and nieces ( have to recount in my head) and at last count 16 grand nephews and nieces!
However I don't plan on leaving any of our estate to any of them, not because of any spite or animosity buit mostly just because they are all doing well and don't need any help. Most likely whatever is left will be going to charities like The Nature Conservancy etc.
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Old 08-31-2020, 09:30 AM   #53
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I am reminded of Bob Brinker (the Money Talk guy) who would get calls from people in their 70's with SS benefits, an ample secure pension, and $2.7 Million dollars invested in stocks, bonds and CD's. They were wondering if they could afford to pay for a two week cruise along the scenic rivers of Lower Slobovia with their kids and grand kids.

His advice was always " You need to spend more!".
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Old 08-31-2020, 09:32 AM   #54
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A lot of us need to spend more.
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Old 08-31-2020, 09:41 AM   #55
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No Kids here. We could not spend 4% of our stash. It is not that grand either. We (67, 62 Resp.) simply spend what we want to, when we want/need to. When we take SS in about another ~3 years, we will re-evaluate.
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Old 08-31-2020, 09:46 AM   #56
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No kids, no family we like enough to enrich after we're gone. All/any remaining $ will go to charities. We plan on VPW for the most part. We want to travel a lot and comfortably during the go-go years. We could easily survive on a 3.5% WR but we are planning on around a 4.5% WR plus pensions from FIRE to 62. That is the WR VPW is suggesting.

At 62 a small portion of our pensions go away but then what's left has a COLA. Eventually we will also have 2 SS payments. From 62 until SS we may go above 4.5% if we are still traveling frequently.

After we slow down we will drop below 3.5%. We will have a paid off house by SS age that can more than adequately fund LTC for both of us if we run short on funds eventually. That's our pre-FIRE plan. We plan to remain flexible and have both wiggle room in the budget plus the ability to move from our HCOL area if needed.
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Old 08-31-2020, 09:48 AM   #57
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+1 on the "spending more money doesn't make me any happier"
Yes get the will done.
My wife and I have not finished our will either and I need to get this done.
I am 61 DW is 64. She has one brother who is married but had no kids either.
I have 5 brothers and sisters all of whom are married with kids.
I think I have 13 nephews and nieces ( have to recount in my head) and at last count 16 grand nephews and nieces!
However I don't plan on leaving any of our estate to any of them, not because of any spite or animosity buit mostly just because they are all doing well and don't need any help. Most likely whatever is left will be going to charities like The Nature Conservancy etc.
In this situation, I would leave some amount like $15K to each grand nephews and nieces just so they could pay off some College debt.

Not sure how a Will could leave $$ to the yet to be born grandchildren
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Old 08-31-2020, 10:05 AM   #58
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... Not sure how a Will could leave $$ to the yet to be born grandchildren
Not difficult but maybe it takes a testamentary trust to hold the assets until the grandchildren appear and, if they do not appear, specify a decision date and an alternate beneficiary. But that kind of a very simple trust would probably be safe to have a family member trustee, so no fees. Attorneys will know; I'm just SGOTI.
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Old 09-01-2020, 11:01 AM   #59
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This year we have spent heavily on donations to food banks and animal welfare orrganizations. Just spending a portion of the excess portfolio returns so far.

We are also expecting a 10 to 15% rollback in equities.
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Old 09-01-2020, 11:44 AM   #60
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Thanks for the community foundation link. There is one in my area and I do like the idea of keeping it local and being able to see the results.

I do not have anyone to directly leave money to. My sister will receive her husband's COLA'd pension and Soc Sec, so she will be set. Her two daughters were successful students, but have not done to well in the working world after graduating with non-marketable degrees. I care about them, but I do not see any reason to make them instantly rich, so more charitable giving is in my future. To the OP's question; I have 2 modest pensions, Soc Sec, and my portfolio. I can live on the annuity sources, so my portfolio is for fun and life's unexpected situations. I have a hazy notion of increased charitable giving as I age.

On the spending side, I've bought a few upgrades for around the house lately, but really this is just my unspent travel budget getting redirected to subwoofers! Like many here, I do take pleasure in watching my portfolio grow and a lifetime of being frugal is hard to change. Speaking of which, does anybody know what it costs to rent a private jet to Europe? It's good to have savings goals!
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