Spend It All vs. Leave $$ for the Kids

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MaryO
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Spend It All vs. Leave $$ for the Kids

Post by MaryO » Sat Nov 09, 2019 12:13 pm

I was reading a SWR thread and posters were chiming in with their thoughts on generational wealth being part of their retirement plan. For some it's a given. Some believe "teaching a man to fish" and leaving nothing is best. Some plan to help with school/home purchase/wedding but otherwise not let the desire to leave a nice inheritance be a focal part of their planning.

Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?

milktoast
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Re: Spend It All vs. Leave $$ for the Kids

Post by milktoast » Sat Nov 09, 2019 12:17 pm

Choose a SWR so if you are in the worst 10% of historical outcomes, you spend it all. And if you experience the average historical outcome, you’ll leave half behind.

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1789
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Re: Spend It All vs. Leave $$ for the Kids

Post by 1789 » Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent. I think the key is to be at a stage where parents are not a burden to kids when they are old. Along the way, surely we want to help with college (pay full tuition and living expenses, depending on amount of money saved for all kids), marriage, home etc... whatever we can do. If there is more after helping with these definitely leaving some to them would be a great help for them.
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retired@50
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Re: Spend It All vs. Leave $$ for the Kids

Post by retired@50 » Sat Nov 09, 2019 12:40 pm

I'm doing my best to try and teach my heirs about investing before I pass, that way, if they wind up with something from my estate at least I'll have an inkling that they won't blow it on something silly. I was at a retirement seminar of some sort a while back and the leader of the presentation said when he speaks to his children, he says "I didn't win this money, I EARNED it." In other words, respect the sacrifice that was involved in amassing this nest egg.
Regards,

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MrBobcat
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Re: Spend It All vs. Leave $$ for the Kids

Post by MrBobcat » Sat Nov 09, 2019 12:40 pm

MaryO wrote:
Sat Nov 09, 2019 12:13 pm
Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?
I'm more inclined not to spend it all if there is another generation in the works, ie grandkids. Otherwise, meh the kids themselves are doing great the don't really need our $$.

CurlyDave
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Re: Spend It All vs. Leave $$ for the Kids

Post by CurlyDave » Sat Nov 09, 2019 12:44 pm

I want to become the favorite ancestor of all my descendants.

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Re: Spend It All vs. Leave $$ for the Kids

Post by RickBoglehead » Sat Nov 09, 2019 12:47 pm

MaryO wrote:
Sat Nov 09, 2019 12:13 pm
I was reading a SWR thread and posters were chiming in with their thoughts on generational wealth being part of their retirement plan. For some it's a given. Some believe "teaching a man to fish" and leaving nothing is best. Some plan to help with school/home purchase/wedding but otherwise not let the desire to leave a nice inheritance be a focal part of their planning.

Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?
You've outlined a wide array of opinions that you found. Do you expect to find more? Seems to cover it. :D
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

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JoMoney
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Re: Spend It All vs. Leave $$ for the Kids

Post by JoMoney » Sat Nov 09, 2019 12:48 pm

I don't see making sure you "spend it all" or making sure you leave a big estate as worthy goals.
Finding the correct balance doesn't always make for a simple answer, but with most things, the extreme on either side is usually wrong.
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mortfree
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Re: Spend It All vs. Leave $$ for the Kids

Post by mortfree » Sat Nov 09, 2019 12:50 pm

Give some money now (e.g. 14k). Then you won’t have to stress about whether to spend it all or leave some.

If anything is left at the end, then they get whatever remains.

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Re: Spend It All vs. Leave $$ for the Kids

Post by KlangFool » Sat Nov 09, 2019 12:51 pm

1789 wrote:
Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
1789,

For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that.

KlangFool

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Re: Spend It All vs. Leave $$ for the Kids

Post by willthrill81 » Sat Nov 09, 2019 12:52 pm

1789 wrote:
Sat Nov 09, 2019 12:30 pm
I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
My belief is that there is a balancing act between providing your children with the wisdom and character needed to do well in life and resources, financial and otherwise. Given the choice between the two, I would absolutely choose the former over the latter. So did George Clason in his story about a young man given a bag full of gold and two tablets of wisdom from his father. The young man quickly squandered the money but eventually used the wisdom of the tablets to gain back the money and much more.

I do believe that it's possible to provide children with both wisdom/character and resources, but it's very difficult to achieve. Very few parents seem to have succeeded in both.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Wiggums
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Re: Spend It All vs. Leave $$ for the Kids

Post by Wiggums » Sat Nov 09, 2019 12:54 pm

We are raising our kids to be productive members of society, to save for retirement the BH way and perhaps have a family one day. They don’t NEED our money and they appreciate our love and guidance. we have allowed them to grow and be independent while still keeping the the train on the tracks.

We currently have a donor advised fund that shares in our good fortune.

Since we can’t predict the future and we don’t want to run out of money in retirement, our children will inherit the family house and residual money.

If you chose a different path, I have no problem with that.

Broken Man 1999
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Re: Spend It All vs. Leave $$ for the Kids

Post by Broken Man 1999 » Sat Nov 09, 2019 1:04 pm

My siblings and I received an inheritance from our father. The amount made it easier for DW and I to do many things for our family. And, FWIW, I often told my children that their grandfather had a hand in us affording things. I never wanted for them to not appreciate their grandfather's generosity.

My intent is to pay it forward. Hopefully our children and grandchildren will use their inheritance wisely. We tried to use my inheritance wisely.

Though, the ability to actually leave an inheritance to anyone is not guaranteed, by any means. The first order of business is trying to avoid being a burden on our children.

No idea how our hopes will play out.

Broken Man 1999
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Re: Spend It All vs. Leave $$ for the Kids

Post by Afty » Sat Nov 09, 2019 1:21 pm

milktoast wrote:
Sat Nov 09, 2019 12:17 pm
Choose a SWR so if you are in the worst 10% of historical outcomes, you spend it all. And if you experience the average historical outcome, you’ll leave half behind.
This is how I think about it. Your typical Boglehead is probably going to have a lot of money left over just because we plan for the worst case. I plan to leave that to my kids.

dropdx
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Re: Spend It All vs. Leave $$ for the Kids

Post by dropdx » Sat Nov 09, 2019 1:33 pm

For those who have replied, I'd be curious to know who is a baby boomer.

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Re: Spend It All vs. Leave $$ for the Kids

Post by Broken Man 1999 » Sat Nov 09, 2019 1:50 pm

dropdx wrote:
Sat Nov 09, 2019 1:33 pm
For those who have replied, I'd be curious to know who is a baby boomer.
I'm curious, why the question?

Baby boomer here. Born in 1953. DW also a baby boomer, born in 1953. We are in the middle of the baby boomer grouping (1944-1964).

Broken Man 1999
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JoeRetire
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Re: Spend It All vs. Leave $$ for the Kids

Post by JoeRetire » Sat Nov 09, 2019 1:54 pm

MaryO wrote:
Sat Nov 09, 2019 12:13 pm
I was reading a SWR thread and posters were chiming in with their thoughts on generational wealth being part of their retirement plan. For some it's a given. Some believe "teaching a man to fish" and leaving nothing is best. Some plan to help with school/home purchase/wedding but otherwise not let the desire to leave a nice inheritance be a focal part of their planning.

Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?
The desire to leave a nice inheritance is not a focal part of my planning.
Neither is the desire to spend it all a focal part of my planning.

A focal part of my planning is to make sure my wife and I have enough to live the lifestyle we choose for the rest of our lives. We aren't depriving ourselves of anything we value. We are enjoying life every day. But since nobody knows how long "the rest of our lives" could be, we will almost certainly leave a substantial legacy.

We have been and will continue to be generous with our children, their spouses, our grandchildren and our extended families. None of that has come at the expense of our own enjoyment of life.
Don't be a lemming.

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1789
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Re: Spend It All vs. Leave $$ for the Kids

Post by 1789 » Sat Nov 09, 2019 1:59 pm

KlangFool wrote:
Sat Nov 09, 2019 12:51 pm
1789 wrote:
Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
1789,

For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that.

KlangFool
Thank you. I understand you and your family history proved you that this is not good for your kids, but eventually whatever left from you will be your kids, no?
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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Re: Spend It All vs. Leave $$ for the Kids

Post by 1789 » Sat Nov 09, 2019 2:02 pm

willthrill81 wrote:
Sat Nov 09, 2019 12:52 pm
1789 wrote:
Sat Nov 09, 2019 12:30 pm
I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
My belief is that there is a balancing act between providing your children with the wisdom and character needed to do well in life and resources, financial and otherwise. Given the choice between the two, I would absolutely choose the former over the latter. So did George Clason in his story about a young man given a bag full of gold and two tablets of wisdom from his father. The young man quickly squandered the money but eventually used the wisdom of the tablets to gain back the money and much more.

I do believe that it's possible to provide children with both wisdom/character and resources, but it's very difficult to achieve. Very few parents seem to have succeeded in both.

My point was that people should be able to raise responsible kids to their family, to society and to the world as a whole. And then they can use these resources for their good, their families etc... of course i agree that this is not an easy task for parents. It is not like a simple equation to solve.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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Re: Spend It All vs. Leave $$ for the Kids

Post by willthrill81 » Sat Nov 09, 2019 2:06 pm

Wiggums wrote:
Sat Nov 09, 2019 12:54 pm
Since we can’t predict the future and we don’t want to run out of money in retirement, our children will inherit the family house and residual money.
That's basically our goal as well. Charities will receive whatever is left in our HSA (due to the adverse tax treatment if inherited by a non-spouse), and our daughter will receive most of what's left, including our home (assuming we still have it; we're currently thinking that we might sell it and move to a CCRC in our 60s, but there's a lot of water to go under the bridge first). While we're still alive, we'll largely, if not entirely, pay for her to go to the local university and live with us while she does so. Beyond that, we aren't planning on providing her with what Thomas Stanley called 'economic outpatient care'.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Spend It All vs. Leave $$ for the Kids

Post by remomnyc » Sat Nov 09, 2019 2:21 pm

My husband's parents live large and have told us they plan to spend it all. My parents have required financial support for 30+ years and still counting. We have told our kids our goals are to provide them debt free college degrees and for them not to support us in our old age. We are not saving/spending to leave an inheritance, but as a byproduct of not trying to run out of money for our care, we will likely (unintentionally) leave a significant inheritance. The current plan is to purchase some annuities when we're further along and start giving away up to the gift limit each year to reduce any potential inheritance. Don't want to die rich.

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Re: Spend It All vs. Leave $$ for the Kids

Post by smitcat » Sat Nov 09, 2019 2:22 pm

"Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?"

We will do both - spend all that we want to and leave $$ for heirs.

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Re: Spend It All vs. Leave $$ for the Kids

Post by illumination » Sat Nov 09, 2019 2:23 pm

I think in 90%+ of circumstances, it's a net positive to leave your kids an inheritance. The inheritance itself is probably not going to ruin them or make them bad people. It can allow them to have a more comfortable retirement, send their kids to the college they want, buy a house, etc. But I don't think should come at the expense of having a comfortable retirement. You shouldn't feel like you live like a miser for a bigger inheritance.


It's the more extreme estates where I think you can make a good case there are legitimate concerns about negative effects of what sort of lifestyle that leads to. If some grand child gets millions of dollars at an early age, are they really going to work an average 9-5 job? It becomes like winning the lottery, and many times those cases are tragic.

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Re: Spend It All vs. Leave $$ for the Kids

Post by Grt2bOutdoors » Sat Nov 09, 2019 2:26 pm

If there is anything left, it's going to my offspring. It's inherent by biology that a parent would want their offspring to have access to resources to extend the lineage. Why focus on $ only? Parents can provide many things, knowledge but knowledge or skills alone are not the liquid form of exchange in the modern world. Hence, the nature of the question. BTW, not a boomer!
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Re: Spend It All vs. Leave $$ for the Kids

Post by KlangFool » Sat Nov 09, 2019 2:34 pm

1789 wrote:
Sat Nov 09, 2019 1:59 pm
KlangFool wrote:
Sat Nov 09, 2019 12:51 pm
1789 wrote:
Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
1789,

For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that.

KlangFool
Thank you. I understand you and your family history proved you that this is not good for your kids, but eventually whatever left from you will be your kids, no?
1789,

<<whatever left from you will be your kids, >>

No. It would be whatever I had done.

KlangFool

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Re: Spend It All vs. Leave $$ for the Kids

Post by Dandy » Sat Nov 09, 2019 2:39 pm

I am blessed with great hardworking children and their husbands. I feel for many it is harder now to become financially secure. Pensions are becoming rare, health insurance is expensive and more employer don't seem to provide it, housing is expensive even with low mortgage rates and education expenses are daunting.

We are fortunate to have a good retirement income and assets. We should not really have to choose between satisfying our needs and leaving $$ to our heirs. I think we would always have an inheritance goal even if we had to scrip a bit on our life style. I also feel if we were in need they would not neglect us.

We might feel differently if we had children that were lazy or managed money poorly (and weren't about to change). I can see that some children would be negatively affected by a large inheritance so it is key to know your children.

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Re: Spend It All vs. Leave $$ for the Kids

Post by willthrill81 » Sat Nov 09, 2019 2:58 pm

Grt2bOutdoors wrote:
Sat Nov 09, 2019 2:26 pm
Parents can provide many things, knowledge but knowledge or skills alone are not the liquid form of exchange in the modern world. Hence, the nature of the question. BTW, not a boomer!
Given the choice between wisdom and money, wisdom is robustly superior. Just look at how lottery winners almost universally turn out. It's true that the two are not mutually exclusive, but it's very difficult to provide both to young children. The blessing in the case of the OP and most here is that by the time our children receive their inheritance, they will likely be fully grown adults themselves, and hopefully they will be sufficiently wise to manage their inheritance without experiencing its pitfalls.
Last edited by willthrill81 on Sat Nov 09, 2019 3:00 pm, edited 1 time in total.
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Re: Spend It All vs. Leave $$ for the Kids

Post by goodenyou » Sat Nov 09, 2019 3:00 pm

Milton Friedman opined that we are really a culture where the family unit is the core and not the individual. He is quoted as saying (paraphrased): “For reasons I don’t truly understand, we value the ability of our children to consume much more than we value our own”.

Re: 100% Inheritance tax (100% consumption) https://www.youtube.com/watch?v=km9OCw3f5w4

We hope to give money to my children that they don't need. We are receiving money from family that we don't need, but they know we are and will be good stewards of the money. It won't materially change our lifestyle. Our hope is to give the kids money to make things easier for them at the right time. They have shown that they are responsible so far. Spending it all gives us no pleasure.
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.

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Re: Spend It All vs. Leave $$ for the Kids

Post by delamer » Sat Nov 09, 2019 4:02 pm

JoeRetire wrote:
Sat Nov 09, 2019 1:54 pm
MaryO wrote:
Sat Nov 09, 2019 12:13 pm
I was reading a SWR thread and posters were chiming in with their thoughts on generational wealth being part of their retirement plan. For some it's a given. Some believe "teaching a man to fish" and leaving nothing is best. Some plan to help with school/home purchase/wedding but otherwise not let the desire to leave a nice inheritance be a focal part of their planning.

Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?
The desire to leave a nice inheritance is not a focal part of my planning.
Neither is the desire to spend it all a focal part of my planning.

A focal part of my planning is to make sure my wife and I have enough to live the lifestyle we choose for the rest of our lives. We aren't depriving ourselves of anything we value. We are enjoying life every day. But since nobody knows how long "the rest of our lives" could be, we will almost certainly leave a substantial legacy.

We have been and will continue to be generous with our children, their spouses, our grandchildren and our extended families. None of that has come at the expense of our own enjoyment of life.
This reflects our thinking also.

As someone who received a large inheritance after I’d already retired, I am a great believer in sharing the wealth with our kids while we are still alive and it is most impactful.

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Re: Spend It All vs. Leave $$ for the Kids

Post by HomeStretch » Sat Nov 09, 2019 4:19 pm

+ 1.

Spouse/I hope our kids/grandchildren/etc. will do better financially than we have, just like we have done better financially than spouse’s/my parents. Our (wonderful) grandparents had very little in assets and towards the end lived very frugally and one entered a nursing home on Medicaid. Our parents lived below their means, helped a bit with college, and will use the remainder of their savings for in-home assistance/assisted living and (soon) memory care. We have paid completely for schooling so there is no education debt like we had, will give gifts towards wedding/first homes/family vacations/(hopefully) grandchildren’s education. If we can live well in retirement, not need any monetary support from family and leave a legacy too, we will be very blessed.

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Re: Spend It All vs. Leave $$ for the Kids

Post by cautious » Sat Nov 09, 2019 4:20 pm

Please, What is a SWR?

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Re: Spend It All vs. Leave $$ for the Kids

Post by arsenalfan » Sat Nov 09, 2019 4:22 pm

Another in the pay it out as you go, so long as kids on track.
My parents did this as we proved we were responsible.
Lots of humps to help with - education debt, house, grandkids education, etc.
Much more impactful to the kids to get this assistance in your 30s & 40s, rather than a big inheritance in 50s on parents' death.
Much more gratifying for parents to watch effects of this assistance while they're alive, rather than 6 feet under.
Presuming parents have enough to live/be cared for, and kids are responsible/not spendthrifts.
Last edited by arsenalfan on Sat Nov 09, 2019 4:24 pm, edited 2 times in total.

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Re: Spend It All vs. Leave $$ for the Kids

Post by willthrill81 » Sat Nov 09, 2019 4:22 pm

cautious wrote:
Sat Nov 09, 2019 4:20 pm
Please, What is a SWR?
A safe withdrawal rate. There are many threads discussing it, and it is also referenced in the Wiki.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Spend It All vs. Leave $$ for the Kids

Post by HomeStretch » Sat Nov 09, 2019 4:23 pm

cautious wrote:
Sat Nov 09, 2019 4:20 pm
Please, What is a SWR?
I didn’t look to see which post used the acronym, but it usually means Safe Withdrawal Rate.

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Re: Spend It All vs. Leave $$ for the Kids

Post by Dead Man Walking » Sat Nov 09, 2019 4:24 pm

My wife and I live comfortably on our pensions and still save about 10% of our income in taxable accounts. We use our savings to cover both expected and unexpected expenses. We have always lived well within our means. Our IRAs and taxable portfolio are essentially our long term care insurance. If neither of us require long term care, our heirs will inherit a nice chunk of money; but it won’t be generational wealth.

DMW

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Re: Spend It All vs. Leave $$ for the Kids

Post by nguy44 » Sat Nov 09, 2019 4:47 pm

Our current SWR projects us to never run out of money, so we are spending to have a fun and comfortable retirement. If anything is left over, most will go to our kids, some will go to other relatives and charity. Various models indicate better odds for leaving each of our kids 6 figure inheritances, but there is no guarantee for the future, especially when it comes to health costs. While we hope to leave something to them, that is not going to be the priority in our retirement.

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Re: Spend It All vs. Leave $$ for the Kids

Post by MJS » Sat Nov 09, 2019 4:50 pm

On the other side of the question: I'm a bequestee (and boomer.) My great aunt paid for my mother's and her cousins' educations before & during the Depression; and her legacy paid for mine and my cousins' educations and business start-ups; and it paid for my nieces' & nephews' & second cousins'; and now her legacy is helping my great-nieces & -nephews and their 2nd & 3rd cousins. Her legacy has had a profound impact on my family for over a century. Leaving $$ to the kids can help many generations. Thank you, Great Aunt Bea!

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Re: Spend It All vs. Leave $$ for the Kids

Post by MathIsMyWayr » Sat Nov 09, 2019 6:12 pm

willthrill81 wrote:
Sat Nov 09, 2019 2:58 pm
Grt2bOutdoors wrote:
Sat Nov 09, 2019 2:26 pm
Parents can provide many things, knowledge but knowledge or skills alone are not the liquid form of exchange in the modern world. Hence, the nature of the question. BTW, not a boomer!
Given the choice between wisdom and money, wisdom is robustly superior. Just look at how lottery winners almost universally turn out. It's true that the two are not mutually exclusive, but it's very difficult to provide both to young children. The blessing in the case of the OP and most here is that by the time our children receive their inheritance, they will likely be fully grown adults themselves, and hopefully they will be sufficiently wise to manage their inheritance without experiencing its pitfalls.
Money is an option and wisdom is not.

Broken Man 1999
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Re: Spend It All vs. Leave $$ for the Kids

Post by Broken Man 1999 » Sat Nov 09, 2019 6:15 pm

MJS wrote:
Sat Nov 09, 2019 4:50 pm
On the other side of the question: I'm a bequestee (and boomer.) My great aunt paid for my mother's and her cousins' educations before & during the Depression; and her legacy paid for mine and my cousins' educations and business start-ups; and it paid for my nieces' & nephews' & second cousins'; and now her legacy is helping my great-nieces & -nephews and their 2nd & 3rd cousins. Her legacy has had a profound impact on my family for over a century. Leaving $$ to the kids can help many generations. Thank you, Great Aunt Bea!
That is one awesome Auntie, for sure! Are the benefits of her gift capable of continuing beyond the current group of recipients?

I honestly wish I could do such a thing, but I'm not in that rarified air of great wealth.

Maybe if I win the Publisher's Clearing House sweepstakes one year I could afford to undertake such a project. Oh, that's right, to win you have to enter.

Broken Man 1999
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Re: Spend It All vs. Leave $$ for the Kids

Post by Sola Scriptura » Sat Nov 09, 2019 6:18 pm

I can understand making careful specifications for what you leave your children as heirs through detailed estate planning--dependent upon their level of need, demonstrated responsibility, work ethic, healthy lifestyle, etc.--but with that said:

Attempting to spend every dime you have before death, leaving *as little as possible* to your children, is one of the most profoundly selfish things I could conceive of any human being possibly doing.

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FIREchief
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Re: Spend It All vs. Leave $$ for the Kids

Post by FIREchief » Sat Nov 09, 2019 6:26 pm

I think the larger question is "Spend it all vs. leave some behind for somebody/something that will benefit from it?" There is an implication in the OP that spending it all is discretionary. Obviously, many don't have a choice. It will all be spent on essentials and they will die broke. That's in no way an indictment. Some who try to live below their means and save for a comfortable retirement are derailed by life.

When that isn't the case, I would likely answer the question with a question. What are you going to "spend it all" on? Charitable donations? Gifts to family? Fancy mansions? Exotic trips? Sports cars? I'm guessing many Bogleheads would not be able to spend it on the later options because it would cause more discomfort than pleasure.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

denovo
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Re: Spend It All vs. Leave $$ for the Kids

Post by denovo » Sat Nov 09, 2019 6:35 pm

KlangFool wrote:
Sat Nov 09, 2019 12:51 pm
1789 wrote:
Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
1789,

For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that.

KlangFool
You know your family history of inheritances going back 2,000 years?
"Don't trust everything you read on the Internet"- Abraham Lincoln

Trader Joe
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Re: Spend It All vs. Leave $$ for the Kids

Post by Trader Joe » Sat Nov 09, 2019 6:37 pm

MaryO wrote:
Sat Nov 09, 2019 12:13 pm
I was reading a SWR thread and posters were chiming in with their thoughts on generational wealth being part of their retirement plan. For some it's a given. Some believe "teaching a man to fish" and leaving nothing is best. Some plan to help with school/home purchase/wedding but otherwise not let the desire to leave a nice inheritance be a focal part of their planning.

Assuming you don't have a child with special needs who obviously will require assistance down the road, what are your thoughts?
100% of my investment portfolio will be willed to my heirs. I will never spend one dollar.

KlangFool
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Re: Spend It All vs. Leave $$ for the Kids

Post by KlangFool » Sat Nov 09, 2019 6:44 pm

denovo wrote:
Sat Nov 09, 2019 6:35 pm
KlangFool wrote:
Sat Nov 09, 2019 12:51 pm
1789 wrote:
Sat Nov 09, 2019 12:30 pm

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent.
1789,

For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that.

KlangFool
You know your family history of inheritances going back 2,000 years?
denovo,

Why is that a big deal? We only need to look at those that are rich enough and important enough to be recorded in history. Then, look at what happened 3 to 4 generations later.

Wealth does not past 3 generations.

The most famous and influential member of my ancestors died of abject poverty.

KlangFool

Mr. Rumples
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Re: Spend It All vs. Leave $$ for the Kids

Post by Mr. Rumples » Sat Nov 09, 2019 7:11 pm

I have no qualms about not spending all my $. What I will do is establish an endowed scholarship in addition to leaving money to family. I am also designating some grants to deserving kids for dispersal upon my crossing over to the other side.

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willthrill81
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Re: Spend It All vs. Leave $$ for the Kids

Post by willthrill81 » Sat Nov 09, 2019 8:19 pm

FIREchief wrote:
Sat Nov 09, 2019 6:26 pm
I think the larger question is "Spend it all vs. leave some behind for somebody/something that will benefit from it?" There is an implication in the OP that spending it all is discretionary. Obviously, many don't have a choice. It will all be spent on essentials and they will die broke.
We have several family members in that position. Saving and certainly investing have not been priorities for them, even when they had decent incomes. I fully anticipate that SS benefits will represent at least 80% of their retirement income. One has explicitly told me that his children should not expect to get a dime from them because they will likely spend it all.

In his famous Millionaire Next Door book, Stanley noted that most millionaires never received a dime of inheritance, so failure to leave behind a bequest does not necessarily mean that parents are condemning their children to a life of poverty.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

trueblueky
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Re: Spend It All vs. Leave $$ for the Kids

Post by trueblueky » Sat Nov 09, 2019 8:40 pm

Not sure I'm up to spending it all.
More comes in every month.
;>D

Rudedog
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Re: Spend It All vs. Leave $$ for the Kids

Post by Rudedog » Sat Nov 09, 2019 8:41 pm

Spend what we need, if anything is left over leave it to our three children, 1/3 each. All three of my children are tight with money, they don't waste it.

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Hawaiishrimp
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Re: Spend It All vs. Leave $$ for the Kids

Post by Hawaiishrimp » Sat Nov 09, 2019 10:08 pm

CurlyDave wrote:
Sat Nov 09, 2019 12:44 pm
I want to become the favorite ancestor of all my descendants.
Love this one. :beer

I have been thinking a lot about this recently. My current thinking is: I love my kids and I want them to have an abundant life. HOWEVER, I don't want to spoil them with a free ATM. So, my plan is to teach them to work hard, treat people nicely, focus on meaningful things in life, be productive, and be a good citizen in our society.

The hard part for me right now is to think of a good wealth distribution plan for them so that the above statement can be realized. It's not easy. I still need time to think it through. But, to answer the OP's question, yes I intend to leave money for the kids. Just because I want them to have a safety net.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

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AndrewXnn
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Re: Spend It All vs. Leave $$ for the Kids

Post by AndrewXnn » Sat Nov 09, 2019 11:22 pm

Both my father and grandfather paid the tuition for all of their grandchildren to attend college.
So, that will be one of my goals as well.


Plan to live reasonably and have done well enough that there will probably be a nice inheritance for my children.
I look at it as my cushion to avoid being a burden or ward of the state.

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