Comments on: Retirement Savings: Why My Kids Shouldn’t Plan on Receiving an Inheritance From Me http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html The offbeat personal finance blog for responsible people. Fri, 17 Feb 2012 00:33:27 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Which Annuity Pension http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-138863 Which Annuity Pension Sun, 02 Oct 2011 11:01:40 +0000 http://lenpenzo.com/blog/?p=970#comment-138863 [...] - TIME.comYou can’t make a loan against a pension plan can you? - Benefits Loanspension plan?Retirement Savings: Why My Kids Shouldn’t Plan on Receiving an Inheritance From MePersonal Pension PlanICICI Pru Lifetime Super Pension PlanThe Fading Pension PlanEssentials of [...] [...] – TIME.comYou can’t make a loan against a pension plan can you? – Benefits Loanspension plan?Retirement Savings: Why My Kids Shouldn’t Plan on Receiving an Inheritance From MePersonal Pension PlanICICI Pru Lifetime Super Pension PlanThe Fading Pension PlanEssentials of [...]

]]> By: ctreit http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2000 ctreit Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2000 Great post and great strategy. I do think that you can save too much but it is better to save too much than too little unless you may enjoy bagging groceries at 80. My kids don't expect any inheritance from me, either, but I got the funny feeling that something will be left over when I will die. (I'll outlive the misses since I got some serious longevity genes!) Again, I am not too worried about that since it is better to have something left over than to be short of money at the end of your life. If there is some money left over my kids may get a windfall inheritance; and that is all it should be: a windfall to my kids. Great post and great strategy. I do think that you can save too much but it is better to save too much than too little unless you may enjoy bagging groceries at 80. My kids don’t expect any inheritance from me, either, but I got the funny feeling that something will be left over when I will die. (I’ll outlive the misses since I got some serious longevity genes!) Again, I am not too worried about that since it is better to have something left over than to be short of money at the end of your life. If there is some money left over my kids may get a windfall inheritance; and that is all it should be: a windfall to my kids.

]]> By: Mr Credit Card http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2001 Mr Credit Card Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2001 Len congratulations on your very savvy financial moves since you were young. You have been prudent and never got caught up in the whole real estate leverage game like these folks here: http://www.fiscalgeek.com/2010/01/retired-early-in-debt/ You did it the old fashion way. I have nothing to really add to the post. Whether you save enough or not really is irrelevant when you have saved quite a bit and you still plan to be doing consultancy jobs to keep your grey cells working. I think this is simply an excellent example of prudent personal finance...work hard, save, instill good values in your kids (or try to anyway)..and not simply dream for the passive income retire at 35 pie in the sky nonsense that seems to float around. I guess the only thing you really have to watch out for is the value of the dollar! A lifetime of savings can go poof overnight if our currency becomes a banana republic money! Len

congratulations on your very savvy financial moves since you were young. You have been prudent and never got caught up in the whole real estate leverage game like these folks here:

http://www.fiscalgeek.com/2010/01/retired-early-in-debt/

You did it the old fashion way. I have nothing to really add to the post. Whether you save enough or not really is irrelevant when you have saved quite a bit and you still plan to be doing consultancy jobs to keep your grey cells working.

I think this is simply an excellent example of prudent personal finance…work hard, save, instill good values in your kids (or try to anyway)..and not simply dream for the passive income retire at 35 pie in the sky nonsense that seems to float around.

I guess the only thing you really have to watch out for is the value of the dollar! A lifetime of savings can go poof overnight if our currency becomes a banana republic money!

]]> By: Daniel http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2002 Daniel Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2002 A little while ago I went through a ton of different options as to what it would take to retire early based on past history. I used firecalc.com and it's really cool to see what has happened in history and your odds of making it with a given amount of money. Kind of crazy, actually. At what point do you have enough? 70% 80%? 90%? A little while ago I went through a ton of different options as to what it would take to retire early based on past history. I used firecalc.com and it’s really cool to see what has happened in history and your odds of making it with a given amount of money. Kind of crazy, actually. At what point do you have enough? 70% 80%? 90%?

]]> By: Len Penzo http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2003 Len Penzo Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2003 @Ctreit: Well said. I'm with you, kids should look at any inheritance they might receive as a windfall. @Mr. CC: I saw that article at Paul's site. You are so right about inflation robbing retirees. As the great Ronald Reagan said, it comes like a thief in the night to steal from all of us. That's why I am so irate when I see our government continue to grow bigger and bigger everyday while running unsustainable deficits and dooming our kids to a declining standard of living. As a regular reader here, you know I believe high inflation is inevitable. If things get too bad, I will have to stay employed longer than I expected. @Daniel: Thanks for the tip! I just went over to Firecalc. They use a Monte Carlo analysis which is, in my opinion, a much better way of predicting future outcomes when model inputs can vary. I run Monte Carlo analyses all the time in my engineering job. For those of you who aren't familiar with them, Monte Carlo analyses make hundreds to millions of runs using pseudo-random inputs to simulate variations in outcomes. As for the point where you have enough - that comes down to how much risk you are willing to accept. That is the beauty of a Monte Carlo analysis - it allows us to make trade-offs. Are you willing to live with the risk that you have a 70% chance of not outliving your money, or would you only be happy with 100%? To me, I think I would accept 90% and feel fairly confident that I won't have to be bagging groceries at 80. I may also choose to accept 70%, but I would do so with the understanding that I may have to pick up a bit of extra income somewhere along the way to ensure I don't run out of cash. Then again, my numbers are quite conservative, so maybe if I think about it a bit longer, I may be willing to accept 70% - and not lose a bit of sleep at night - precisely because my numbers had a lot of pad in them to begin with. @Ctreit: Well said. I’m with you, kids should look at any inheritance they might receive as a windfall.
@Mr. CC: I saw that article at Paul’s site. You are so right about inflation robbing retirees. As the great Ronald Reagan said, it comes like a thief in the night to steal from all of us. That’s why I am so irate when I see our government continue to grow bigger and bigger everyday while running unsustainable deficits and dooming our kids to a declining standard of living. As a regular reader here, you know I believe high inflation is inevitable. If things get too bad, I will have to stay employed longer than I expected.
@Daniel: Thanks for the tip! I just went over to Firecalc. They use a Monte Carlo analysis which is, in my opinion, a much better way of predicting future outcomes when model inputs can vary. I run Monte Carlo analyses all the time in my engineering job. For those of you who aren’t familiar with them, Monte Carlo analyses make hundreds to millions of runs using pseudo-random inputs to simulate variations in outcomes. As for the point where you have enough – that comes down to how much risk you are willing to accept. That is the beauty of a Monte Carlo analysis – it allows us to make trade-offs. Are you willing to live with the risk that you have a 70% chance of not outliving your money, or would you only be happy with 100%? To me, I think I would accept 90% and feel fairly confident that I won’t have to be bagging groceries at 80. I may also choose to accept 70%, but I would do so with the understanding that I may have to pick up a bit of extra income somewhere along the way to ensure I don’t run out of cash. Then again, my numbers are quite conservative, so maybe if I think about it a bit longer, I may be willing to accept 70% – and not lose a bit of sleep at night – precisely because my numbers had a lot of pad in them to begin with.

]]> By: Financial Samurai http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2004 Financial Samurai Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2004 Yeah, to die with too much money will really spoil your kids. I just hope my parents spend to their heart's content and never worry about me b/c that wouldn't be right. Cool spreadsheet! $32k/yr is frugal! .-= Financial Samurai´s last blog ..<a href="http://www.financialsamurai.com/2010/02/22/the-marriage-penalty-tax-and-sexist-government/" rel="nofollow">The Government Is Sexist And Nobody Seems To Care</a> =-. Yeah, to die with too much money will really spoil your kids.

I just hope my parents spend to their heart’s content and never worry about me b/c that wouldn’t be right.

Cool spreadsheet! $32k/yr is frugal!
.-= Financial Samurai´s last blog ..The Government Is Sexist And Nobody Seems To Care =-.

]]> By: Mr Credit Card http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2005 Mr Credit Card Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2005 You smart dude - monte carlo...beware the fat tail! You smart dude – monte carlo…beware the fat tail!

]]> By: Ken http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2006 Ken Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2006 Hats off to you for investing early. If we get it right, our kids will see what we leave them as 'bonus' money, not money they need to get by on. .-= Ken´s last blog ..<a href="http://www.moneymakingsense.com/?p=118" rel="nofollow">“Money Nerd” Cardinal Sins</a> =-. Hats off to you for investing early. If we get it right, our kids will see what we leave them as ‘bonus’ money, not money they need to get by on.
.-= Ken´s last blog ..“Money Nerd” Cardinal Sins =-.

]]> By: Len Penzo http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2007 Len Penzo Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2007 @Sam: Yep. I suspect the $32,000 will be roughly equivalent to what I spend now minus the expenses attributed to the kids and mortgage though. It may be a bit too aggressive of an estimate - but, if I am wrong, I am comfortable that I was even more conservative in other areas like investment returns and annual income after retirement. @Mr. CC: Better beware the "long tail" too. ;-) @Ken: That is what I am hoping for too. @Sam: Yep. I suspect the $32,000 will be roughly equivalent to what I spend now minus the expenses attributed to the kids and mortgage though. It may be a bit too aggressive of an estimate – but, if I am wrong, I am comfortable that I was even more conservative in other areas like investment returns and annual income after retirement.
@Mr. CC: Better beware the “long tail” too. ;-)
@Ken: That is what I am hoping for too.

]]> By: 20smoney http://lenpenzo.com/blog/id970-retirement-savings-why-my-kids-shouldnt-plan-on-receiving-an-inheritance.html#comment-2008 20smoney Wed, 20 Apr 2011 20:48:56 +0000 http://lenpenzo.com/blog/?p=970#comment-2008 Very cool graphic above showing the diff scenarios. Thanks for the insight into your plans. .-= 20smoney´s last blog ..<a href="http://20smoney.com/2010/02/24/an-offer-to-buy-my-blog/" rel="nofollow">An Offer To Buy My Blog</a> =-. Very cool graphic above showing the diff scenarios. Thanks for the insight into your plans.
.-= 20smoney´s last blog ..An Offer To Buy My Blog =-.

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