We have 2 areas where we feel our contributions will be effective and appreciated but not thwart individual endeavor: we fully fund 529s for each niece and nephew, and we match wages in a Roth IRA up to $100k each. Both of us had to work FT in college, that balancing act was not fun and we missed out on a lot both socially and academically (honors clubs, newspaper and such). We also graduated with debt. The Roth hopefully means they won’t be destitute in old age, though they could always blow it in one swoop at 59.5. We agree with Adam that it takes quite a while to think this through and sift through examples to figure what works best and also matches your family values.
Congratulations and thank you for all of your posts about retirement preparations which have helped me to think through my own retirement fitness and journey. Good luck on your last few months of teaching!
We have also had excellent service at our local Social Security office after hitting 70 and having to apply. I’ve designed databases throughout my career, and I suspect that those outliers of ages 200 or 300 years old in the Social Security systems are edge cases inserted to test the system when it is set up, not real people. That is standard practice when designing databases to test their robustness.
Decades ago when my husband and I were first together we were walking in a park in London and saw two people probably in their 70s or so walking 2 golden retriever dogs, and they all four looked so happy that we kind of decided that was an ideal worth aiming for!
Run your own ship, it’s enough to have to make the best decisions possible for yourself, and your investment in yourself will pretty much ensure a jealousy-free life. Curiously, when this is done well, it often makes one care more generously and thoughtfully about family and community.
Exactly this. The brokerage surveys of risk tolerance are usually one question and do little to probe for a true level of tolerance because it can be so hard to imagine watching assets plunge. For us and friends the dotcom losses in 2000 were staggering. I do know a couple of people whose paper gains from exercised stock options plunged, leaving them with terrible IRS problems for years, and neither has ever financially recovered.
To your last point, I would like to see better assessments for risk tolerance—most I’ve seen are basically one question rate yourself on a scale—and good advice on how to manage disparities between partners whose tolerances diverge. Also, how to handle either willful ignorance or disengagement by one partner (or family members if considering estate planning).
We have always owned houses and condos, and pretty large ones, but when my husband and I first met he thought buying several small apartments in different cities would be fun, and I suspect it would have been the better financial move. The houses have been not only a drain but a massive headache with the upkeep. We’ve also moved all around the country for work, but it took us 30 years to basically realize that your plan is a solid one.
Comments
We have 2 areas where we feel our contributions will be effective and appreciated but not thwart individual endeavor: we fully fund 529s for each niece and nephew, and we match wages in a Roth IRA up to $100k each. Both of us had to work FT in college, that balancing act was not fun and we missed out on a lot both socially and academically (honors clubs, newspaper and such). We also graduated with debt. The Roth hopefully means they won’t be destitute in old age, though they could always blow it in one swoop at 59.5. We agree with Adam that it takes quite a while to think this through and sift through examples to figure what works best and also matches your family values.
Post: Giving Advice
Link to comment from April 5, 2025
Congratulations and thank you for all of your posts about retirement preparations which have helped me to think through my own retirement fitness and journey. Good luck on your last few months of teaching!
Post: Today’s the Day!–Well, Sort Of (by Dana/DrLefty)
Link to comment from April 3, 2025
We have also had excellent service at our local Social Security office after hitting 70 and having to apply. I’ve designed databases throughout my career, and I suspect that those outliers of ages 200 or 300 years old in the Social Security systems are edge cases inserted to test the system when it is set up, not real people. That is standard practice when designing databases to test their robustness.
Post: Today’s the Day!–Well, Sort Of (by Dana/DrLefty)
Link to comment from April 3, 2025
Is the $16.68 for both you and your wife together?
Post: Quinn’s grand new way to plan for a secure retirement. It’s called the McDonalds strategy
Link to comment from March 27, 2025
Decades ago when my husband and I were first together we were walking in a park in London and saw two people probably in their 70s or so walking 2 golden retriever dogs, and they all four looked so happy that we kind of decided that was an ideal worth aiming for!
Post: Help Wanted
Link to comment from March 27, 2025
Run your own ship, it’s enough to have to make the best decisions possible for yourself, and your investment in yourself will pretty much ensure a jealousy-free life. Curiously, when this is done well, it often makes one care more generously and thoughtfully about family and community.
Post: Help Wanted
Link to comment from March 27, 2025
Interesting place to find a risk tolerance assessment!
Post: Do you understand your tolerance for risk? Really, honestly? I’m not sure most of us do. By RDQ
Link to comment from January 18, 2025
Exactly this. The brokerage surveys of risk tolerance are usually one question and do little to probe for a true level of tolerance because it can be so hard to imagine watching assets plunge. For us and friends the dotcom losses in 2000 were staggering. I do know a couple of people whose paper gains from exercised stock options plunged, leaving them with terrible IRS problems for years, and neither has ever financially recovered.
Post: Money Grows Up
Link to comment from January 18, 2025
To your last point, I would like to see better assessments for risk tolerance—most I’ve seen are basically one question rate yourself on a scale—and good advice on how to manage disparities between partners whose tolerances diverge. Also, how to handle either willful ignorance or disengagement by one partner (or family members if considering estate planning).
Post: Money Grows Up
Link to comment from January 18, 2025
We have always owned houses and condos, and pretty large ones, but when my husband and I first met he thought buying several small apartments in different cities would be fun, and I suspect it would have been the better financial move. The houses have been not only a drain but a massive headache with the upkeep. We’ve also moved all around the country for work, but it took us 30 years to basically realize that your plan is a solid one.
Post: Home Free
Link to comment from January 18, 2025