8 Reasons you should not expect an inheritance

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bobcat2
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8 Reasons you should not expect an inheritance

Post by bobcat2 »

In finance risk is defined as uncertainty that is consequential (nontrivial). | The two main methods of dealing with financial risk are the matching of assets to goals & diversifying.
unclemick
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Post by unclemick »

I come from a long line of poverty. (9?).

:lol: :lol: :lol:

heh heh heh - Great Depression/stocks are evil/both sides of the family tree. 8) I went over to the dark side(black sheep of the family) early on - indexing, Bogle, etc, etc.
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Index Fan
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Post by Index Fan »

You're doing pretty well for being a 'black sheep', Mick! ;)

I've always thought that there was a large moral hazard problem with people expecting a large inheritance anyway.
"Optimum est pati quod emendare non possis." | -Seneca
chaz
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Post by chaz »

Bob K, thanks for this post. My children are hoping gas prices do not get to $10/gal.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
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Sheepdog
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Post by Sheepdog »

Another reason:
My children are successful in their careers. They don't need an inheritance. Except for some belongings all investments will go to charitable foundations. I had better tell them, huh?
Jim
All that truly matters in the end is that you loved.
allancoleman
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Post by allancoleman »

Thanks bobcat2 for the link to the excellent article . I don't have heirs to be concerned about how to leave our estate , but others will have this planning issue in front of them later for their possible heirs . And I suspect that even if this article author isn't exactly correct on all eight reasons , there will be at least a few of the reasons that will be valid . And the article encourages thoughtful thinking for all us for future estate planning whether we have heirs or not .
Parthenon
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Post by Parthenon »

My goal is to leave each of my daughters (2) $500K when I die.

Ed
"What am I gonna do if I run out of money?"
bb
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Post by bb »

Did anyone else find it odd to say that health care costs could approach
$1M. If 90-95% of people don't have $1M total in retirement funds it
seems unlikely the average health care tab is going to run $1M. The
majority of the people can't spend money they are never going to have.

Brian
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White Coat Investor
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Post by White Coat Investor »

bb wrote:Did anyone else find it odd to say that health care costs could approach
$1M. If 90-95% of people don't have $1M total in retirement funds it
seems unlikely the average health care tab is going to run $1M. The
majority of the people can't spend money they are never going to have.

Brian
Yes, that's pretty screwy. But I suppose if you expect current trends to continue at present rates, then $1 Million may not be that much in 40 years.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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tetractys
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Post by tetractys »

bb wrote:If 90-95% of people don't have $1M total in retirement funds it
seems unlikely the average health care tab is going to run $1M. The
majority of the people can't spend money they are never going to have.
Well that's right, if you don't have it you can't spend it. If you don't have the money to spend, you won't be included in the averages. Same as today where statistics don't include the thousands of unknowns who simply die without care.

Well, there's no inheritance there anyway.

Not to disregard the bright side, Tet
RESISTANCE IS FRUITFUL
gassert
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Post by gassert »

Well - you can really disregard health care costs in your retirement esimates.

Historically they are growing at 7%+ and make up 16% of the GDP. If they continue at that rate they will eventually make up over 100% of GDP in the next 25 yrs. Thats impossible, so somethign will eventaully break or something will be fixed. No way to model that
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