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A variation on Solon and Croesus - "Count no man happy until the end is known." (Herodotus, Histories, Book 1)I am not going to assume we over saved until we reach our deathbed.
A variation on Solon and Croesus - "Count no man happy until the end is known." (Herodotus, Histories, Book 1)I am not going to assume we over saved until we reach our deathbed.
Wow, that's really interesting. I could see my estate, including real estate, being over the $5.5 million mark if things go right. But I can't see gifting a significant amount before 2025 since I'll only be 64. I guess since it probably won't be that much over $5.5M it's not that big of a deal, or I could donate enough to charity to cancel out the estate tax.For some reason we are not concerned about this scenario.....
Quote: Even better: The IRS recently issued a ruling that it wouldn’t “claw back” those large gifts should the estate tax exemption revert back to the old threshold after 2025, giving taxpayers assurance that any planning they do today will hold up. However, if you don’t use up the full exemption amount and the threshold does get reduced in the future, you won’t be able to do so retroactively.
https://www.cnbc.com/2020/02/18/cre...w-to-take-advantage-of-big-tax-exemption.html
+1 We are essentially in OP's situation. We are currently at about 1-1,5% withdrawal.A variation on Solon and Croesus - "Count no man happy until the end is known." (Herodotus, Histories, Book 1)
Direct from the IRS.Where did you get $5.5M? Looking at the same cumulative inflation adjustment the old threshold would be around $5.26M today. Did you mean $5M inflation adjusted?
It was nearly 5.5M in 2017 before it was doubled (with inflation) in 2018. Assuming they return to half in 2025, it'll be $5.79M + inflation from 2021-2025.A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 - 2005; $2,000,000 in 2006 - 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent's dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013, $5,340,000 in 2014, $5,430,000 in 2015, $5,450,000 in 2016, $5,490,000 in 2017, $11,180,000 in 2018, $11,400,000 in 2019, and $11,580,000 in 2020.
Clark Griswold being given a such a suggestion.I like the idea of dying as I spend my last dollar but I haven’t figured out how to do that just yet.
Until Medicare age, my only fear is not hiring able to get health insurance then having a million dollar health problem.
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My hope is we do have $ at the end for our children and grandkids. I don’t understand the comments that inheritance can ruin them. I truly believe that our generation has been very fortunate. For example, DH has a pension- that is rare today. So i will be very happy if there’s a little $ at the end to make their lives a bit better.
Having inherited some of my portfolio, I don’t mind at all if I’ve over saved. Until Medicare age, my only fear is not hiring able to get health insurance then having a million dollar health problem.
DS is struggling to find a decent wage career path that makes him happy, but he has a number of activities that give him joy. If he inherits his retirement, that’s fine with me.
Career achievement is overrated. Too many people who were department chairs and medical leaders have abruptly quit and moved to other career paths with greater life satisfaction. 18 months after retiring, I’m still struggling to deal with the damage done by chronic burnout.
I’d rather see my offspring have a joyful life than have to worry about food, clothing, and housing in the event of a job loss.
Having over-saved is a very good problem to have.
The only number I care about is "max out of pocket"
Dawgman; If you had it to do over again would you really do things differently? I think not. I think you love the belt and suspenders position you are in. I think you loved your business and had no reason to cut the cord sooner. I think you've led the life you wanted too, with very little if any deprivation and still managed to pile up a bundle. Good for you.I can't be all alone here. Like most on this site (I would assume), long time big % saver, always LBYMs, "relative" frugality in my genes, worked the plan with an designed exit at 55 (when kid 4 was out of the nest/independent). I moved the goal posts many times as I dialed in my desired retirement spend (FatFire growing by inflation annually), ran (what now appears to be ridiculously) conservative assumptions (i.e. no SS, all my withdrawals taxable as income despites having 50% in after tax accounts). Fast forward to today, I'm 56, decided on a phase out (still earning income mainly because my biz is still very lucrative even on a very part time/Covid world basis and I need to fill some idle time). None the less, I have started running real calculators that take into account a "real" withdrawal strategy, which includes plugging in my basis on my after tax accounts, tax implications based on our current known taxes, a conservative 75% of SS at age 70, a 6% annual return on a 60/40 AA, and all the models say I will easily double my NW by age 94! Yes, 1st world problems that can be solved thru charity and gifting to kids. None the less, funny how we play Jedi mind tricks on ourselves to motivate us to "get to the number" and then you get there and wonder why you worked like a dog to hit some magical number that was overkill. Anyone else wakeup to this?
Recognized that some years ago! The DW and I started gifting the annual no tax maximums to the DD a few years ago.... Other than that, I've been practicing blowing that dough on an accelerated schedule.
Take a lesson from Robbie- blow that dough! I saved and scrimped and lived below my means until 3 months ago. Just bought our dream house, and are in the process of buying furniture, garage workstation/cabinets, and doing improvements. I'm having a hard time coming up with enough $ to spend that don't require paying more taxes this year!We were all savers before our retirement, so even after our retirement, I think we still enjoy seeing our numbers grow. Hard to break the habit.