Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
dknightd
Posts: 1561
Joined: Wed Mar 07, 2018 11:57 am

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by dknightd » Tue May 14, 2019 6:15 pm

jebmke wrote:
Tue May 14, 2019 4:44 pm
dknightd wrote:
Tue May 14, 2019 8:37 am
tibbitts wrote:
Tue May 14, 2019 7:53 am
The question is who will get your withholding "close" and who will see that your taxes are filed and that the refund makes it to your bank? Ultimately life is not d-i-y.
If my wife or I have to hire a tax person, we will.
I am a trained preparer so I do our taxes -- and likely will for many more years (knock on wood). But I have already identified a local firm that my spouse can hand things off to in case I become incapacitated or worse.
We have a pretty simple tax return. And it will get more simple. If neither of us can fill numbers into tax software, then hit submit, I suspect taxes will be the least of our concerns.

Edit. I think for $500 in today's dollars H&R block, or similar, could do a good enough job. If that is what it costs. I think we are both OK spending that

tibbitts
Posts: 8657
Joined: Tue Feb 27, 2007 6:50 pm

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by tibbitts » Tue May 14, 2019 7:21 pm

dknightd wrote:
Tue May 14, 2019 6:15 pm
jebmke wrote:
Tue May 14, 2019 4:44 pm
dknightd wrote:
Tue May 14, 2019 8:37 am
tibbitts wrote:
Tue May 14, 2019 7:53 am
The question is who will get your withholding "close" and who will see that your taxes are filed and that the refund makes it to your bank? Ultimately life is not d-i-y.
If my wife or I have to hire a tax person, we will.
I am a trained preparer so I do our taxes -- and likely will for many more years (knock on wood). But I have already identified a local firm that my spouse can hand things off to in case I become incapacitated or worse.
We have a pretty simple tax return. And it will get more simple. If neither of us can fill numbers into tax software, then hit submit, I suspect taxes will be the least of our concerns.

Edit. I think for $500 in today's dollars H&R block, or similar, could do a good enough job. If that is what it costs. I think we are both OK spending that
I think the issue is that you have to have pretty frequent interaction with somebody who you trust to tell you when you can't do things like taxes, because there will probably be a time between when you aren't doing them correctly and recognize (if you ever do) that you aren't.

boomer_techie
Posts: 124
Joined: Fri Jan 18, 2019 6:47 am

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by boomer_techie » Tue May 14, 2019 7:27 pm

Bongleur wrote:
Mon May 13, 2019 7:15 am
So is there really any option but to buy an SPIA when there's nobody left to run your SWR system? Note that by the time you realize (or are told) that you can't handle it yourself anymore, you are no longer competent to legally decide which professional SWR system is best for you -- which amounts to choosing the professional, since there are many professional tools they can subscribe to.
When you've had enough cognitive decline that you can't manage withdrawal rate changes, then you also won't be able to manage spending changes. You will not be deciding that "the market did good this past year, we can take a trip to Europe this summer." Instead, your biggest financial decision will be whether to order a piece of pie with your lunch today, or to put it off till tomorrow's visit to the diner. In short, you'll be on a fixed expenditure plan. Your last coherent planning merely needs to put you at a sustainable expenditure level.

dknightd
Posts: 1561
Joined: Wed Mar 07, 2018 11:57 am

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by dknightd » Tue May 14, 2019 8:16 pm

tibbitts wrote:
Tue May 14, 2019 7:21 pm

I think the issue is that you have to have pretty frequent interaction with somebody who you trust to tell you when you can't do things like taxes, because there will probably be a time between when you aren't doing them correctly and recognize (if you ever do) that you aren't.
I'm pretty sure that the IRS will let me know if I'm doing them wrong.
If that time comes, and I can not figure what they did wrong, I'll hire an expert.
I hope Mom and Dad do the same thing. They might be getting close

Ykcor
Posts: 54
Joined: Mon Nov 26, 2018 7:42 am

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by Ykcor » Wed May 15, 2019 9:00 pm

Sorry to sound stupid, but what does "SWR" stand for?

User avatar
willthrill81
Posts: 9668
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by willthrill81 » Wed May 15, 2019 9:02 pm

Ykcor wrote:
Wed May 15, 2019 9:00 pm
Sorry to sound stupid, but what does "SWR" stand for?
Safe withdrawal rate. It's not a stupid question at all; we toss out acronyms here like candy at Halloween. It refers to using a fixed real dollar withdrawal strategy (i.e. withdraw X dollar at the beginning of retirement and then withdraw that same amount, adjusted for inflation, every subsequent year.
“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

Topic Author
Bongleur
Posts: 2226
Joined: Fri Dec 03, 2010 10:36 am

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by Bongleur » Wed May 22, 2019 1:19 am

willthrill81 wrote:
Tue May 14, 2019 4:52 pm
...I can just have Vanguard automatically sell whatever's necessary to cover my RMDs...likely let our Roth accounts ride
But who decided WHICH assets to sell? If & when to rebalance?
Seeking Iso-Elasticity. | Tax Loss Harvesting is an Asset Class. | A well-planned presentation creates a sense of urgency. If the prospect fails to act now, he will risk a loss of some sort.

User avatar
willthrill81
Posts: 9668
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

Post by willthrill81 » Wed May 22, 2019 11:27 am

Bongleur wrote:
Wed May 22, 2019 1:19 am
willthrill81 wrote:
Tue May 14, 2019 4:52 pm
...I can just have Vanguard automatically sell whatever's necessary to cover my RMDs...likely let our Roth accounts ride
But who decided WHICH assets to sell? If & when to rebalance?
By my understanding, they will rebalance for you and sell a proportionate amount of each asset to produce your withdrawals. If you want to maintain a fixed AA, this is fine. If you want a dynamic AA (e.g. you don't want to sell any stocks if they're down more than 20%), then this won't work.
“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

Post Reply