 |
Allow lots of debt in the final years?
09-16-2009, 01:26 PM
|
#1
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
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?
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
09-16-2009, 05:46 PM
|
#2
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 6,258
|
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. 
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
|
|
|
|
|
09-16-2009, 05:52 PM
|
#3
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
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!
|
|
|
|
|
09-17-2009, 06:19 AM
|
#4
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
|
I couldn't live with myself if I died deeply in debt.
|
|
|
|
|
09-17-2009, 10:21 PM
|
#5
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
|
Firecalc does allow negative ending portfolio values which would be the equivalent of debt, so go at it.......
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
|
|
|
|
|
09-18-2009, 02:18 AM
|
#6
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
|
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.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
|
|
|
|
|
09-18-2009, 09:06 PM
|
#7
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
|
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...
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
|
|
09-19-2009, 04:59 AM
|
#8
|
|
Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,345
|
 Quote:
Originally Posted by kumquat
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.
__________________
When I was a kid I wanted to be older. This is not what I expected.
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
