The (unsung) top 5 list of things to take care of.

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laughlinlvr
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The (unsung) top 5 list of things to take care of.

Post by laughlinlvr » Fri Jul 11, 2014 1:05 pm

Today's BBC Radio 2's popular call-in show featured its regular personal finance expert today. He was asked to come in and talk about the top 5 things to take care of in personal finance that aren't on regular top 5 lists.

http://www.bbc.co.uk/programmes/b048j4cw (in 2nd hour)

(I'm guessing that the "regular" top five would include: have a plan and stick to it, start saving soon and regularly, diversify, don't overlook fees and taxes, LBYM.)

I thought the list was very Bogleheadish:

1. Plan for a lingering death: Have in place powers of attorney that can be activated in case of debilitation or dementia.
2. Plan for an untimely death: Have your significant other know where the money is. (i.e. account numbers.)
3. Don't assume your debts will die with you.
4. Downsize asap. Don't put off leaving the big family home. Going for a reverse mortgage is a much worse deal than biting the bullet while you're still able to move.
5. Don't overestimate your longevity. Have an honest look at mortality tables, add 5 - 10 years for safety and then spend your money in the time you have left.
Investing - The hardest way to make an easy living.

shawcroft
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The (unsung) top 5 list of things to take care of.

Post by shawcroft » Fri Jul 11, 2014 4:31 pm

laughlinlvr wrote:Today's BBC Radio 2's popular call-in show featured its regular personal finance expert today. He was asked to come in and talk about the top 5 things to take care of in personal finance that aren't on regular top 5 lists.
Laughlinlvr: Some different- and valuable- perspectives on personal finance. Thanks for posting this.
Shawcroft

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cheese_breath
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Re: The (unsung) top 5 list of things to take care of.

Post by cheese_breath » Fri Jul 11, 2014 5:06 pm

No problems with 1,2, and 3 but...

4. Although you might want to downsize for ease of living, not everyone needs to downsize for financial reasons. Some might, but others may have the resources to stay in their current homes the rest of their lies.

5. I don't understand the obsession with spending everything before you die. I'm estimating my wife and I living comfortable lives into our 90s, and if I overestimate our lifespans so be it. The kids get what's left over.
The surest way to know the future is when it becomes the past.

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VictoriaF
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Re: The (unsung) top 5 list of things to take care of.

Post by VictoriaF » Fri Jul 11, 2014 5:18 pm

laughlinlvr wrote:5. Don't overestimate your longevity. Have an honest look at mortality tables, add 5 - 10 years for safety and then spend your money in the time you have left.
The current mortality tables are based on the past state of medicine and medical technology. With the advances in nanotechnology, stem cell-based treatments and other innovations, the life span may dramatically increase in our lifetime. People like Ray Kurzweil expect that if we hold on for a few more years, we will be able to ride the wave of longevity, where our life will be extended by, say, 20 years, and during those 20 years new advances would extend it by additional 50 years, and so on. Celebrating 200th birthdays may become quite common.

The challenge will be to pay for life-extending treatments ... and for the extended life.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

shawcroft
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Re: The (unsung) top 5 list of things to take care of.

Post by shawcroft » Fri Jul 11, 2014 5:24 pm

VictoriaF wrote: Celebrating 200th birthdays may become quite common.
Victoria
My wife would shoot me long before then!
Shawcroft

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VictoriaF
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Re: The (unsung) top 5 list of things to take care of.

Post by VictoriaF » Fri Jul 11, 2014 5:32 pm

shawcroft wrote:
VictoriaF wrote: Celebrating 200th birthdays may become quite common.
Victoria
My wife would shoot me long before then!
Shawcroft
Forewarned is forearmed,

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

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