This was a very interesting read, and I think it speaks to the overall importance of social security tax and benefits. It is super interesting and highlights the importance of how spending/ saving can affect one's financial means.
One interesting point I liked was that financial planning should include future factors like social Security, tax, inflation, and return on investment. It underlines the 21st century approach in financial advising that planning is less about cashflows and balance sheets, but rather future projections and optimizing for it.
I like the outlook of this story as this is a realistic view of some people's life later on down the road. With that said, this story also pushes us to start thinking about what can happen if we don't start early. This is a great lesson for me to get things started now so I can live a little better later on down the line.
My parents are both recently retired, and my husband's parents are retiring next year. Both are married, own their homes outright, and have healthy portfolios (by rural Midwest standards, to give some relative context).
2 of the 4 are in poor health, 1 is in excellent health, and 1 is in good health.
We live half a country away currently, and at times, on a different continent. For several reasons, we do not anticipate having any of them move in with us for elder care to be a wise move.
What do you point people to consider - both the parents and their adult children - when aiming for protection and preservation of generational wealth against extended- and end-of-life care?
Kat, a great question, complicated by emotion, that needs best efforts beginning with legal guidance to minimize transfer costs. Let's look at the other extreme. Suppose no generational wealth transfer. Let's take one household for simplicity with 1 member in poor health and 1 in good health. If you can approximate the max age of each, and the endpoint is wealth of $0, except for home equity, then economics-based planning can inform you how much sustainable spending power the household has until the second to die. When that number, I call it the magic number, is determined, then you can begin assessing how expected extended care costs fit among the other normal, annual living costs. You might say, "they do want to pass along generational wealth of x dollars," then that is essentially monies off the table, or held on reserve, and economics-based planning can calculate the new (and lower) sustainable spending power, and you can see how expected extended care costs fit. You ask an important question and I am sure I haven't hit on all the nuances, but you have given me an idea for a case study. If you want to extend the conversation to a direct messaging, we can sure do that at the minor cost of a paid subscription.
I also liked the part about how money planning isn't only for rich folks. It shows how crucial having a good money plan is for reaching any money goals, no matter how big or small.
This story causes more concern for me than anything. Primarily because Colorado is now past the point where she can live out her life comfortable in retirement. It is evident that unfortunately she now needs to both continue to work as well as cut back on her spending. In this country it is incredibly hard to force people to do something such as take a class about managing money before its too late. However, this story forces me to think about the possibility of making this type of information more mainstream or almost a part of common knowledge. It seems impossible to achieve but could there be any measures taken to help manage the number of people that end up like Colorado?
Colorado's story, got me thinking about the real-world messiness of personal finance, especially post-divorce. It's relatable and raw, showing us that anyone, not just the well-off, could use a hand in navigating their finances. The lessons here are eye-opening, planning for the future isn’t just about the numbers—it's about understanding your resources and how they fit with your life goals, like whether to take Social Security early or hold off for bigger benefits later. If you were in Colorado’s shoes, how would you prioritize your financial planning, by cutting expenses, extending your work life, or a mix of both?
She needs to do both. Another alternative is to sell her home and move to a less expensive part of the country. I bet Texas, Tennessee, or Florida could be better choices, and we can evaluate changing a geographic location with similar techniques. If Colorado reaches out, I will show her how!
Colorados budget strategy emphasizes the importance of discretionary spending and the need for significant cost cutbacks. I am wondering why these cuts are so important and how they would help Colorado achieve their financial goals?
Colorado has a certain way of life and needs an evaluation. She is concerned about her finances and is very generous to express herself to @lindseystanberry . I hope she reads this piece and reaches out to me. I'd love to help her.
I think Colorado serves as an example of how important it is to be flexible and willing to adapt a financial plan. It is hard to account for certain circumstances and contemplating different scenarios as it relates to savings and retirement age is a healthy way to approach ones finances.
I like the line about how financial planning and guidance isn't just limited to the wealthy. This case really shows how important having a proper financial plan is if you want to achieve any financial goals in life, no matter how big or small they may be.
This was a very interesting read, and I think it speaks to the overall importance of social security tax and benefits. It is super interesting and highlights the importance of how spending/ saving can affect one's financial means.
One interesting point I liked was that financial planning should include future factors like social Security, tax, inflation, and return on investment. It underlines the 21st century approach in financial advising that planning is less about cashflows and balance sheets, but rather future projections and optimizing for it.
Yes, and ensuring you consider all the financial resources and constraints available to you.
I like the outlook of this story as this is a realistic view of some people's life later on down the road. With that said, this story also pushes us to start thinking about what can happen if we don't start early. This is a great lesson for me to get things started now so I can live a little better later on down the line.
My parents are both recently retired, and my husband's parents are retiring next year. Both are married, own their homes outright, and have healthy portfolios (by rural Midwest standards, to give some relative context).
2 of the 4 are in poor health, 1 is in excellent health, and 1 is in good health.
We live half a country away currently, and at times, on a different continent. For several reasons, we do not anticipate having any of them move in with us for elder care to be a wise move.
What do you point people to consider - both the parents and their adult children - when aiming for protection and preservation of generational wealth against extended- and end-of-life care?
Thank you.
Kat, a great question, complicated by emotion, that needs best efforts beginning with legal guidance to minimize transfer costs. Let's look at the other extreme. Suppose no generational wealth transfer. Let's take one household for simplicity with 1 member in poor health and 1 in good health. If you can approximate the max age of each, and the endpoint is wealth of $0, except for home equity, then economics-based planning can inform you how much sustainable spending power the household has until the second to die. When that number, I call it the magic number, is determined, then you can begin assessing how expected extended care costs fit among the other normal, annual living costs. You might say, "they do want to pass along generational wealth of x dollars," then that is essentially monies off the table, or held on reserve, and economics-based planning can calculate the new (and lower) sustainable spending power, and you can see how expected extended care costs fit. You ask an important question and I am sure I haven't hit on all the nuances, but you have given me an idea for a case study. If you want to extend the conversation to a direct messaging, we can sure do that at the minor cost of a paid subscription.
I also liked the part about how money planning isn't only for rich folks. It shows how crucial having a good money plan is for reaching any money goals, no matter how big or small.
This story causes more concern for me than anything. Primarily because Colorado is now past the point where she can live out her life comfortable in retirement. It is evident that unfortunately she now needs to both continue to work as well as cut back on her spending. In this country it is incredibly hard to force people to do something such as take a class about managing money before its too late. However, this story forces me to think about the possibility of making this type of information more mainstream or almost a part of common knowledge. It seems impossible to achieve but could there be any measures taken to help manage the number of people that end up like Colorado?
Colorado's story, got me thinking about the real-world messiness of personal finance, especially post-divorce. It's relatable and raw, showing us that anyone, not just the well-off, could use a hand in navigating their finances. The lessons here are eye-opening, planning for the future isn’t just about the numbers—it's about understanding your resources and how they fit with your life goals, like whether to take Social Security early or hold off for bigger benefits later. If you were in Colorado’s shoes, how would you prioritize your financial planning, by cutting expenses, extending your work life, or a mix of both?
She needs to do both. Another alternative is to sell her home and move to a less expensive part of the country. I bet Texas, Tennessee, or Florida could be better choices, and we can evaluate changing a geographic location with similar techniques. If Colorado reaches out, I will show her how!
Colorados budget strategy emphasizes the importance of discretionary spending and the need for significant cost cutbacks. I am wondering why these cuts are so important and how they would help Colorado achieve their financial goals?
Colorado has a certain way of life and needs an evaluation. She is concerned about her finances and is very generous to express herself to @lindseystanberry . I hope she reads this piece and reaches out to me. I'd love to help her.
Really puts into perspective that it may not always be about how much you make, but how you spend/save
I think Colorado serves as an example of how important it is to be flexible and willing to adapt a financial plan. It is hard to account for certain circumstances and contemplating different scenarios as it relates to savings and retirement age is a healthy way to approach ones finances.
In her shoes, what you would do?
I like the line about how financial planning and guidance isn't just limited to the wealthy. This case really shows how important having a proper financial plan is if you want to achieve any financial goals in life, no matter how big or small they may be.
Thank you for your opinion Brice!