UofODuck

Comments:

• It is every parent's job: to raise our children and then let them go. From our son's first day of school, the first time he drove the family car alone, the day he left for college and his wedding day - each of these involved a bit of letting go that was both joyous and painful. And yet, we always reminded ourselves that our primary task was to raise our son to become a responsible, independent adult. We are fortunate to be able to see our son most weeks as he works nearby and we are glad when he arrives, but always sad when he leaves. Every parent should be so lucky.

  Post: Savoring the Moments

  Link to comment from September 28, 2024

• I would wager that a majority of the readers of this blog are pretty good savers, which may suggest that they are also not very good at spending. I am certainly guilty of both. We can never save too much and we'll only be comfortable spending more when we've saved more. Alas, we will likely never save "enough," as we can never quite define what that amount looks like. And, spending more than we need to live (i.e., on something we don't absoutely need) requires violating the years of effort and discipline it took to save what we have in the first place. At age 76, however, I will concede that in the unlikely event that I should live to 100 (my long term planning horizon, in case you wonder), there should still be plenty in the bank and it might not hurt to spend a little more in the meantime. It only took me 10 years of retirement to get to this point and I'm hoping that I haven't left it too late!

  Post: My Spending Rules

  Link to comment from September 28, 2024

• Many of us of a "certain age" who have lived through the no-go phase of Covid are facing a similar dilemma, with or without any attendant health issues. 5 years ago, my wife and I took pleasure in the planning and anticipation of each year's journey. Either alone or with friends, finally having the time to travel without worrying about work or family had become the realization of a life-long dream. Covid brought all of that to an abrupt end. Today, as more people once again begin to travel, we'd like to resume our journeys, but face a reality in terms of both our age, as well as the health and willingness of friends to resume traveling. 5 years additional age may not mean much to someone younger, but if you are already in your 70's, it can be meaningful. On the other hand, we are also more aware that our remaining time to travel has shortened, which creates urgency to go while we still can.

  Post: Go-Go or Slow-Go?

  Link to comment from August 17, 2024

• My apologies in advance to any of your readers who might be offended by this comment, but the difference in 10 year returns between the S&P 500 and Vanguard Total Stock Market fund strikes me as being no more than the difference between "happy" and "glad." Yes, there are reasons for the differences in returns, but for most investors, achieving 10 year returns of either 13.11% or 12.52% would be cause for celebration, not remorse. In my experience, why these sorts of returns are rare for investors can often be attributed to: over confidence in asset selection, impatience when holding an investment, ignoring fees, market timing and bad asset allocation. For most investors, buying and holding a broad based equity fund (or balanced fund) with low fees would be a winner, but few investors seem to have the patience or discipline necessary for such a strategy.

  Post: My Favorite Fund

  Link to comment from August 17, 2024

• At 76, and aware of how my son treats me today, I am reminded of how I treated my parents as they aged. I remember clearly when I realized that my parents were, in fact, old and how our respective responsibilities to one another had reversed: it had become my responsibility to care for them and not they for me. Its an odd epiphany when we reach this milestone: On the upside, we've lived long to achieve this status (and are still living!), but the inevitable downside is, of course, for how much longer? We have aches and pains, dread having to kneel down to pick up anything, and sleeping through the entire night is a luxury. Our friends are dropping like flies, and any fear we previously had about outliving our money is rapidly receding. Make no mistake, I am happy to be healthy and alive, but continue to be confused by the juxtaposition between my inner me, who still thinks I'm a lot younger, and the external me that regularly reminds me (and others) that I am old. Thank you as always for reminding us that we are not alone in this journey.

  Post: On Being 80

  Link to comment from July 27, 2024

• In a separate property state, the step-up may be limited to 50%

  Post: Looking Different

  Link to comment from July 6, 2024

• Thank you for your courage to continue to write and to focus on issues that few of us ever hope to know much about, except in a theoretical sense. That said, I am hopeful that many of the people who visit and read this blog will be motivated to focus more attention on getting their plans in order and not wasting whatever time remains availabe to them. At age 75, I am very conscious of the incresingly obvious fact that my remaining time on this earth - especially the "good" years, when my wife and I can still travel - is limited. However, as your experience should remind all of us, the future is never certain and no amount of planning or saving will overcome every challenge. Your 7 key points are excellent, in particular investment time horizon and estate planning. Many people whom I have talked to don't really understand investment time horizon and/or don't think beyond their own deaths. In your case, it is highly likely that your wife will live for several more decades, with some additional years of investment for your children. Being too conservative at this point could have a major impact of what the final distribution of your wealth will amount to. As for your estate plan, I assume that you (as we all do who read this blog, right?) have a plan in place and that only minor tweaks should be necessary at this point. The only other suggstion I can offer is don't cut yourself off from friends and family as you go through this miserable journey. Too many of my friends who have gone before me retreated into themselves in their final months, not wishing to bother others with their illness. I try to understand this point of view, but what I am left with is the thought that, not only did they rob themselves of the gift of family and friends, they also robbed their family and friends of the memories of being with them in their remaining days. Your courage in sharing your thoughts and fears at this moment is an example to all of us.

  Post: Looking Different

  Link to comment from July 6, 2024

• A good reminder to every investor. Rebalancing is a bit like pulling weeds in your garden: If you don't do it regularly, your garden will quickly get out of control. What I didn't see in your comments was any mention of appropriate cash levels. At the moment, the penalty for holding a somewhat larger amount of cash is smaller than in recent years. That coupled with the strong run up in equity values and possible economic uncertainty after the 2024 election, may argue for a somewhat larger cash cushion. I have contiued to keep my cash positions in taxable accounts small, but have increased my cash holdings in tax deferred accounts where I am not generating any capital gains.

  Post: Balance Issues

  Link to comment from July 3, 2024

• Thank you. This is a very important issue that too many seniors don't take seriously enough. Given the diminishment in large extended families to help seniors age in place, most of us will have to make hard decisions about to whether to try to age in place or move to a some sort of senior living arrangement. Both of these option can work, but both have their own drawbacks. Aging in place has long been a preferred arrangement, but it is virtually impossible to accomplish without family help, or paid assistance. This arrangement can provide a more comfortable and familiar living experience, but it can also be very isolating and may not address a senior's increasing health needs over time. Hired help can also be a problem as their training or experience may be limited, and without good supervison, personal and financial abuse by a caretaker can occur. Also, in home care is not always cheaper and seniors with limited financial resources may soon exhaust what few resources they have. Insitutional living arrangements are increasing, with many offering tertiary levels of care. The cost, however, is also rising rapidly, while the supply of new facilities lags the demand by the rising number of retired Boomers. The key to securing a place in "Villa d"Senior" is to get your name on a waiting list sooner rather than later, before illness or accident might otherwise exclude you. In my experience, too many seniors are dithering about making a choice of where to live next, and by the time they finally decide, many options may no longer be available to them.

  Post: On the Move

  Link to comment from July 3, 2024

• I worked in the investment business for 42 years and frequently spoke to clients about this question. Sadly, many parents did not want to discuss either their estate plan or financial situation with their children as they were worried that: 1) their children would be disincented to work, and/or 2) would try to take advantage of them. In many cases, their concerns were justified. For other parents, it was mostly a matter of privacy, but I tried to convince them that telling their children about their plans and resources while they were still able was a good idea. Their kids needed to know who would be in charge upon incapacity or death, and it would be a chance for children to ask questions that can't be answered after their parents are gone. That said, such a conversation is not about gaining the approval of children as the money belongs to the parents and its entirely their decision as to how its to be used and/or distributed. Is there a "right time" for such a discussion? The best I can offer is that "it depends." Children need to be old enough to participate in such a discussion and parents need to either have made an estate plan, or have a clear vision of what they have in mind. On the other hand, such a discussion should not be left too late, especially if only one child, or a non-family member, will be in charge when parents are no longer able to act for themselves. Discussing incapacity, death and inheritance is always going to be an emotional discussion, but it needs to done wherever possible in order to help avoid the surprises, disappointment and conflict that may otherwise occur later.

  Post: When to share estate plans and net worth with your adult children

  Link to comment from June 29, 2024