Saving Money is STUPID!!!

[Bestwifeever]

So so sorry. Take care of yourself now.

 

[Sue J]

Sorry for your loss. Sounds like it happened as he wanted it. Take your time dealing with what happens next, there is no rush.

 

[Dtail]

Sorry for your loss.

 

[pb4uski]

My condolences. Sounds like he had a good life and I'm guessing that your being there at the end was special for him. Take care and get some well deserved deep sleep.

 

[Dash man]

I’m sorry for your loss. It was good you could be there for him. Get some rest.

 

[Scuba]

Sorry for your loss, but glad your Dad was able to die peacefully at home. I’m sure he appreciated all that you did for him. Take care. Hope the getting rid of “stuff” part isn’t too painful.

 

[audreyh1]

Wow, my condolences on your loss, and I’m sure you are grateful you were there for your Dad when he needed you. Thanks for sharing your story.

 

[Moemg]

So sorry for your loss .

 

[LARS]

I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.

 

[haha]

I am very sorry for your loss of a topnotch father. You can be proud of how you helped him.

Ha

 

[ivinsfan]

I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.

This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.

 

[Denverite]

Very sorry for your loss. Losing your Father is a very tough chapter in life. Went through it myself in 2006.

One additional thought on Aunt Pisser. You can bet that if she gets into financial difficulty in the future, she'll quickly be at your door asking for a loan. She'll have some equally self-righteous reasons for why you should loan the money without question. You are family after all, right?

I'd tell her then you took her "saving money is stupid" advice to heart and now have no funds to loan.

 

[Dtail]

This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.

It does seem strange, but many people on this site including myself manage our MAGI for ACA. For whatever reason, they kept this loophole.

 

[ncbill]

I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.

Then just do what the more conservative poster on bogleheads recommend - move all assets into an irrevocable trust, pick an attorney as trustee (can't be compelled to reveal the beneficiaries), and so benefit from the assets without them ever being able to be traced back to you.

 

[USGrant1962]

This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.

I think that the simple answer is that ACA was implemented through the tax code, and asset taxes are unconstitutional. If Congress did not intertwine health insurance with the tax code (a really dumb idea IMO) then perhaps it could have asset tests.

 

[ncbill]

This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.

I think you're referring to the CSS Profile, where the parents have to list everything from equity in home/business down to the gold fillings in their teeth.

Under FAFSA if parental income is under $50,000 & parents are eligible to file 1040A/EZ (i.e. no Schedule D required) then the simplified needs test can be used and no parental or child assets need be disclosed.

 

[LARS]

Then just do what the more conservative poster on bogleheads recommend - move all assets into an irrevocable trust, pick an attorney as trustee (can't be compelled to reveal the beneficiaries), and so benefit from the assets without them ever being able to be traced back to you.

I think I will take my chances before I ever dumped assets into irrevocable trust, but it does highlight the problem of asset testing.

Though I wonder if you could do/achieve the same if you made your spouse the Trustee? That might be interesting...

 

[athena53]

I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.

I know- even though current taxes aren't based on assets they ARE based on income, which can be a function of assets, and I've been paying taxes on SS income since 2003 when late DH and I married. He was 65 and collecting SS, I was 50 and working FT. Next year- oh, joy- I'm in line for IRMAA surcharges on my Medicare premiums.

I comfort myself with the thought that, even though some of my money gets sucked away to subsidize people who could have saved for retirement but spent every dime they made (in addition to the ones who worked minimum-wage jobs and just couldn't save much), the people who rely on those programs have limited choices- where they live if they want subsidized housing, what LTC they use if they rely on Medicaid to pay for it.... and if they're unhappy they have few options to move elsewhere. If a tooth underlying a crown goes bad and needs extraction no social program is going to pay for an implant. Life on these programs provides the bare basics... and that's as it should be. I'm hoping that I'll have enough income left after taxes to be able to have a better quality of life.

 

[LARS]

I know- even though current taxes aren't based on assets they ARE based on income, which can be a function of assets, and I've been paying taxes on SS income since 2003 when late DH and I married. He was 65 and collecting SS, I was 50 and working FT. Next year- oh, joy- I'm in line for IRMAA surcharges on my Medicare premiums.

I comfort myself with the thought that, even though some of my money gets sucked away to subsidize people who could have saved for retirement but spent every dime they made (in addition to the ones who worked minimum-wage jobs and just couldn't save much), the people who rely on those programs have limited choices- where they live if they want subsidized housing, what LTC they use if they rely on Medicaid to pay for it.... and if they're unhappy they have few options to move elsewhere. If a tooth underlying a crown goes bad and needs extraction no social program is going to pay for an implant. Life on these programs provides the bare basics... and that's as it should be. I'm hoping that I'll have enough income left after taxes to be able to have a better quality of life.

I pretty much comfort myself that the problem is so out of my control that I don’t spend a lot of time worrying about. Add to that I am much closer to the end of my journey than the beginning so time horizon to manage the problem is shortening (unfortunately) everyday...

 

[Huston55]

I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.

WADR, this just proves that everybody on Wall Street is not that smart.

 

[tmm99]

So sorry for your loss. I am glad you could be there for him all the way till the end, and I'm sure you made the last days of your dad's life easier for him.

 

[athena53]

WADR, this just proves that everybody on Wall Street is not that smart.

But he's right! My parents cheerfully told us years ago when we started applying to colleges that we wouldn't qualify for needs-based scholarships because they'd saved for our educations. They never even bothered to fill out the "Parents' Confidential Statement".

I'll stand by my point, though: while there will be a safety net for those who didn't save, it won't be pretty and there will be few choices, especially as the number of needy baby boomers increases.

 

[LARS]

WADR, this just proves that everybody on Wall Street is not that smart.

Well I don’t know you, but I do know him and I can assure that he is very smart. One of the smartest guys I dealt with in my Investment Banking days, which more than likely makes him a lot smarter than you.

But thanks for your constructive comment...

 

[ivinsfan]

I think you're referring to the CSS Profile, where the parents have to list everything from equity in home/business down to the gold fillings in their teeth.

Under FAFSA if parental income is under $50,000 & parents are eligible to file 1040A/EZ (i.e. no Schedule D required) then the simplified needs test can be used and no parental or child assets need be disclosed.

Right because you don't any assets to speak of anyway.. I mean regular FAFSA...

 

[Chuckanut]

It is possible to live rich without money. It just requires a different definition of rich.

And often requires sticking other people with the bill! I have known several people who lived as though they made well into 6 figures. Any person and any business who they owed money paid the price for their high living.