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"I'm Spending My Childrens' Inheritance!"

 
 
superjuly
 
  1  
Reply Sun 29 Jul, 2007 02:13 pm
at what age did you wiser folks start saving for retirement?

I wonder if I am just way behind... I know I am still young but the thought that I am getting older adds to the need of better planning (and action). And of course this all depends substantially on cultural differences...

We're a family of 4 kids and we have already been told about our inheritance by our parents. They do a lot of what BumbleB talked about by helping all of us out in our financial matters. My parents deal with money much better than any of us kids. he he
0 Replies
 
Phoenix32890
 
  1  
Reply Sun 29 Jul, 2007 02:29 pm
If you start out with nothing at age 25, and put in 20 bucks a week in an interest bearing account that compounded the interest at 5%, when you retired at 65, you would have $132,636.32, less taxes.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Now think of the times when you have blown 20 bucks on nonsense. If you want to put the work in, learn about and buy some dividend bearing stocks, you might just do even better.
CalamityJane
 
  1  
Reply Sun 29 Jul, 2007 02:39 pm
fishin wrote:

If/when someone reaches an age and physical condition where they can no longer be taken care of at home why should they be able to hide their assests in a trust so they can qualify to have Medicaid (Medicare only pays for nursing home care in very limited circumstances) pay for their nursing home care and allow their children to inherit their assets? Medicaid is supposed to be for the indigent - not people who want to leave an inhertiance to their children.

People are hiding their assests in trusts to hide those assets form the government - it is a legalized form of fraud.


Okay, I agree fishin', if people have enough money to provide for estate
planning then they should pay for upcoming nursing care. On the other
hand, I have to say that most people I know would never consider Medicaid or subsidized nursing care facilities. The care you receive with either one is more than substandard, and anyone who can afford
to, would not chose this option in order to leave their children some assets.
I for sure never would!
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Phoenix32890
 
  1  
Reply Sun 29 Jul, 2007 02:44 pm
C.J.- There are some good nursing homes that will accept Medicaid after a person has paid privately for a number of years. So, some people keep enough money to pay the nursing home, and shelter the rest.


There is also a problem if one of the spouses become sick. If the money is not sheltered, the healthy spouse could be left with very little money to live on, as the sick spouse is using it up in a nursing home.
0 Replies
 
Thomas
 
  1  
Reply Sun 29 Jul, 2007 02:50 pm
Re: "I'm Spending My Childrens' Inheritance!"
Phoenix32890 wrote:
What are your thoughts? Is it a parent's obligation to provide an inheritance for his heirs? Does the financial situation of the children make any difference?

No, it isn't a parent's obligation. It's their property to do with whatever they want. They can to convert it into cash and spend it, or they can bequeath it to their children. Either way is fine, and it's their decision only.

If I had children, I don't think their financial situation would make much of a difference to me. Sure, I wouldn't want them to starve. But beyond that, my decision would turn on how highly I think of my children. If I thought they were no good, I'd rather bequeath my property to some good cause. If I thought highly of them, I'd give my money to them. Does that make me tyrannical or capricious? Whatever. My money, my rules.
0 Replies
 
CalamityJane
 
  1  
Reply Sun 29 Jul, 2007 02:52 pm
I'm sure there are, Phoenix - out here (southern Cal) it's almost impossible
as the demand is far greater than the supply.

I guess there is a lot to consider when getting older and not being able
to care for yourself. One thing for sure, I'll hang onto my own house until
death do us part. I will not see a nursing home other than for visiting
purposes.
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Doowop
 
  1  
Reply Sun 29 Jul, 2007 03:45 pm
My two know that I intend leaving them nothing, that's why they constantly find new ways of taking it from me while I'm still kicking.
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Mame
 
  1  
Reply Sun 29 Jul, 2007 04:05 pm
A friend of ours bought a home and installed Mom in it, then mom paid the mortgage as rent. Sounds like a sensible plan.

My kids couldn't afford to buy my place from me, but if I'm still living in it (which is highly doubtful), and if I'm the last one standing in my marriage, I'm putting the house in my kids' names so there's no probate nonsense.

Both my kids are working and own their own homes, as I said earlier, so they don't need much from us, and they'd never expect either of us to go without so they could have a bigger home, newer car, etc.

We also didn't do education funds for the kids because we both paid for our own and we think they should do the same. Nothing wrong with a little hard work. We did support them at home, though.
0 Replies
 
Phoenix32890
 
  1  
Reply Sun 29 Jul, 2007 04:47 pm
CalamityJane wrote:
I'm sure there are, Phoenix - out here (southern Cal) it's almost impossible
as the demand is far greater than the supply.

I guess there is a lot to consider when getting older and not being able
to care for yourself. One thing for sure, I'll hang onto my own house until
death do us part. I will not see a nursing home other than for visiting
purposes.


C.J.- One never knows what the future will bring. Living in a senior community I see lots of people felled by one illness or another, often without warning. In fact, I run a support group for caregivers. Some of the things that I hear are pitiful.

One of the things that you might want to consider when you are in your 50s is long term care insurance. At that age, you can get a policy rather cheaply. When you are over 65, the price jumps considerably. You need to be careful, and compare policies and companies.

Some long term policies include in home care. If a person is unable to take care of himself, being able to hire help at home can help people avoid nursing homes.

Long term care is meant for the middle class. If you don't have a lot of money, you can go on Medicaid. If you have a lot of money (I have seen the figure 3 million,) you can handle your bills yourself. It's the folks in the middle for whom long term care insurance is appropriate.
0 Replies
 
sozobe
 
  1  
Reply Sun 29 Jul, 2007 06:04 pm
Mame wrote:
We also didn't do education funds for the kids because we both paid for our own and we think they should do the same. Nothing wrong with a little hard work. We did support them at home, though.


The problem there is that college educations now cost way, WAY more than they did a generation or two ago, and they're continuing to rise. It's just not really equivalent any more.

My parents didn't save for my education and contributed the minimum required by financial aid (often less). I graduated with a whopping amount of debt that I only recently finally paid off. I got some scholarships and worked, and had far less debt than many of my peers, but it was still a whopping amount.

I am definitely saving for my daughter's college education.
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CalamityJane
 
  1  
Reply Sun 29 Jul, 2007 06:56 pm
I also have a college fund for my daughter. It's just the sensible way to
help them achieve a good education.


Phoenix wrote:
Quote:
One of the things that you might want to consider when you are in your 50s is long term care insurance. At that age, you can get a policy rather cheaply. When you are over 65, the price jumps considerably. You need to be careful, and compare policies and companies.


Very interesting. Thank you for the tip, I will sure look into it. A few years
back I volunteered in an upscale nursing facility here in town, and it was
such an eye opener that I made up my mind to never get into one.
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hamburger
 
  1  
Reply Sun 29 Jul, 2007 07:09 pm
cj wrote :

Quote:
I volunteered in an upscale nursing facility here in town, and it was
such an eye opener that I made up my mind to never get into one.


are you referring to NURSING FACILITY or UPSCALE ?

more and more of our friends find their way into nursing facilities , and while it is best to stay at home as long as possible , there is often not much of a choice , particularly if one partner has passed away earlier .

i think i know what you mean , even the best nursing facility cannot replace a home of one's own .
though we have noticed that some people adjust easier than others .
hbg
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CalamityJane
 
  1  
Reply Sun 29 Jul, 2007 07:13 pm
hamburger, I deliberately said "upscale" because you hope that the
service is accordingly, but it was just horrendous, and I felt so sorry for
these poor people who were basically robbed of their dignity.
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dyslexia
 
  1  
Reply Sun 29 Jul, 2007 07:24 pm
I grew up in saudi arabia, my mother and I traveled extensively thruout the med and europe when I was a child. A few years ago my father decided to clean out his office and he dumped all of the photos of my childhood (1,000's) of photos. Fuc*k the money, I'll never see a dime and I don't care.
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hamburger
 
  1  
Reply Sun 29 Jul, 2007 07:42 pm
cj :
the best seniors' / nursing home we have in our city is operated by the municipal government .
the location - right next to the river - is great , staff are very outgoing and friendly !
PROBLEM : long waiting list !
hbg
0 Replies
 
jespah
 
  1  
Reply Mon 30 Jul, 2007 03:37 am
sozobe wrote:
Mame wrote:
We also didn't do education funds for the kids because we both paid for our own and we think they should do the same. Nothing wrong with a little hard work. We did support them at home, though.


The problem there is that college educations now cost way, WAY more than they did a generation or two ago, and they're continuing to rise. It's just not really equivalent any more.

My parents didn't save for my education and contributed the minimum required by financial aid (often less). I graduated with a whopping amount of debt that I only recently finally paid off. I got some scholarships and worked, and had far less debt than many of my peers, but it was still a whopping amount.

I am definitely saving for my daughter's college education.


You might want to investigate a 529 plan (just Google it); they are a way to save for child's college education that is tax-friendly.

Inheritance? My folks are mainly giving it to us all now, when it can be paid out before it's eaten up by inheritance taxes. This is one reason to spend down. Another's is Jane's -- even upscale nursing home care is not fantastic, so to my mind it makes little sense to pay and pay (and it can often be outrageously expensive; it's intended to bankrupt you) for care and then it turns out to not be so hot.

Eventually, I imagine my folks will go into some sort of senior living as their current house has a lot of stairs. They are happy where they are and their neighbors are very kind. But eventually it will have to be something more than just someone helping with shoveling the driveway. I hope that it is assisted living for as long as possible, that seems to be the most dignified, and that actual nursing care is put off as long as possible. Of course we don't want them to be warehoused. These are, unfortunately, things that have to start being thought of when the folks hit their mid-70s and higher. No amount of wishful thinking makes the inevitable go away.
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OGIONIK
 
  1  
Reply Mon 30 Jul, 2007 04:11 am
I doubt my parents will be able to offer me anything when they die.

maybe a little, their general property etc.

I think ima just work through college and by the time i have money to invest i will be dead anyways so it doesnt matter.
0 Replies
 
Bohne
 
  1  
Reply Mon 30 Jul, 2007 04:57 am
My son is only little now, so I hope there will be a lot of time, before he even starts thinking about his inheritance...

He's got two bank books, in one of which I am planning to deposit some money for each of his birthdays, while he is not into expensive presents.
Also my dad constantly gives him a few Euros for his bank book.
In the other book, my husband deposits a monthly amount.

So despite being little, he's got quite a fortune already, that will grow until he's 18.
Even if we decide that from tomorrow we will not deposit any more money for him.

Further than that, I think that being his mother, I am responsible for his well-being until he is able to take care of himself.
So it goes without saying, that he will have anything he needs (and probably more) while he is in our care.

For now, this is where my thoughts for his financial well-being end.
Once he has finished school/university, it will be up to him what he does with his life.

That does not mean, that I will not help him out if he needs it even after that, as long as I can afford it.
After all, that's what I do for adult friends, too.
But I don'T think that I am going through life, working just so that I can leave him a fortune after I die.

I still want to go on holidays and enjoy my earnings, too!
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dyslexia
 
  1  
Reply Mon 30 Jul, 2007 05:08 am
When my daughter was born I opened an account (investment) for her education. Her name at the time was the name she had been given at birth. We (her mother and I) since divorced and her name was changed. When she came of age I tried to sent her the $$$ from the account but her mother (the only address I had) refused the $ because it was a check written in her (my daughter's original name).
0 Replies
 
dagmaraka
 
  1  
Reply Mon 30 Jul, 2007 07:11 am
oh geez, dys. your family was not very cooperative, were they. the thrown out photos would surely break my heart.
0 Replies
 
 

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