Investment account back up!

[CloverKnollFarms]

We will be able to pay living expenses from SSI, the returns from investments will be fun money and generational wealth.

 

[ponytug]

Excellent!!

My Dad passed a year ago. He had accumulated an estate and had a will. But, we still had to go through the courts to settle. Took right about a year. Needed a lawyer. Slowest process I’ve ever seen.

Do you have a Trust to avoid probate?

Here is another plug for doing your executor and heirs a huge favor and set up a trust. Then make sure you keep it up to date.

All the best, Peter

 

[Torvy]

Here is another plug for doing your executor and heirs a huge favor and set up a trust. Then make sure you keep it up to date.

All the best, Peter

Really depends on the state. We spoke with two trust attorneys with plans to do the same here in Texas. For the vast majority of people, a trust is not worth it in Texas. A will is plenty. (We were happily surprised)

We take more of a Warren Buffet approach to 'generational wealth'. Give the kids the knowledge and values to keep themselves on track and use your money to enjoy your retirement. (However you define enjoy)

They will get the 'farm' and any remaining cash and sentimental 'stuff'. So far, they are all on track to not need wealth from us.

 

[jyoutz]

Really depends on the state. We spoke with two trust attorneys with plans to do the same here in Texas. For the vast majority of people, a trust is not worth it in Texas. A will is plenty. (We were happily surprised)

We take more of a Warren Buffet approach to 'generational wealth'. Give the kids the knowledge and values to keep themselves on track and use your money to enjoy your retirement. (However you define enjoy)

They will get the 'farm' and any remaining cash and sentimental 'stuff'. So far, they are all on track to not need wealth from us.

I agree. My father passed earlier this year in Arizona. I was the executor. Since he had a will and my brother and I were the sole beneficiaries, I handled informal probate myself without an attorney. I filed the papers for appointment as personal representative with the court, set up an estate account and sold/distributed the real estate and other assets. I opened probate in May and closed it in September by filing the required forms with the court (all of which are online). But as a disclaimer, he had almost no debts, so that simplified matters considerably.

 

[RSKY]

Excellent!!

My Dad passed a year ago. He had accumulated an estate and had a will. But, we still had to go through the courts to settle. Took right about a year. Needed a lawyer. Slowest process I’ve ever seen.

Do you have a Trust to avoid probate?

No. We have a will. Both girls names will be put on our checking accounts next year when my wife and I turn 70. We also have living wills and when my wife turns 70 we will have medical power of attorney papers drawn up naming our daughters.

We had a chance before our last parent passed to go to a meeting on "elder law" held by a young lady who is a lawyer in the only firm in Kentucky specializing in legal issues concerning the elderly. Notes were made and a timeline set out for what we need to do and when. Not going to post anything about that here because each state is different. And I might post something wrong based on a three year old memory.

In Kentucky the estate must be over six million before you pay an inheritance tax. That number may be wrong, working from memory here. Ours will not be that large.

We are trying to set everything up so our daughters can settle our estate without using lawyers.

When my father in law passed my wife and her sister were both named executors in the will and worked together to take care of everything. They used no lawyers. Sister in law was still working so my wife did most of the running around involved. There were no issues and no conflicts.

When my mother passed my two sisters and I (all retired) were all three named executors in the will and we divided up tasks as to who was best able to get it done. We did not use a lawyer either. We had no conflicts and really had a good time working with each other. I would have trusted either one to handle the division of assets with no concern for them being fair. They did get upset with me because I mowed mom's yard for nearly a year and didn't charge the estate for gas. But I know they both bought mom clothes and other things out of their pocket the last couple years of her life. And I am pretty sure they spent more on her than I did on gas.

LOL, oldest sister gave me an envelope last week with $0.42 in it. When I asked her what it was for she said some costume jewelry of mom's that had been put in consignment had sold and that was my share. Nearly two years after the estate was settled!! She spent more on gas to get the check from the store than that.

Point I am trying to make is that we all worked together and probably have a closer relationship now than at any time since we became adults.

RSKY

 

[two_bit_score]

My Wells Fargo Advisor gave me a packet of forms to expedite transfer of assets in event of death. A lot of it is simple. Better to do it early as you are acquiring assets than later after you have a few.

 

[RSKY]

My Wells Fargo Advisor gave me a packet of forms to expedite transfer of assets in event of death. A lot of it is simple. Better to do it early as you are acquiring assets than later after you have a few.

It won't matter much to you but it will make a huge difference to your descendants.

RSKY

 

[jyoutz]

It won't matter much to you but it will make a huge difference to your descendants.

RSKY

The assets you’re referring to must be something different than accounts and stock shares? All I had to do as a personal representative was to present my representation letter and death certificate to the bank. Then all assets were transferred to an estate account with me as signatory. It took only about 30 minutes.

 

[ponytug]

The assets you’re referring to must be something different than accounts and stock shares? All I had to do as a personal representative was to present my representation letter and death certificate to the bank. Then all assets were transferred to an estate account with me as signatory. It took only about 30 minutes.

I'm glad it worked for you!

From experience, not every bank is so helpful...

All the best, Peter

 

[jyoutz]

I'm glad it worked for you!

From experience, not every bank is so helpful...

All the best, Peter

I think that state laws are the determining factors.

 

[ultrarunner]

Wrong again. I'm retired. Investments are absolutely a form of income. I don't "need" it except to counter the inflationary pressure.

A CD is just losing money more slowly than keeping cash in your mattress. It is like saying a piece of gauze on a serious bleed is sufficient, when you really need stitches. It's your money, but stop lying to yourself and anyone who reads this that thinks a CD is providing real income.

Never met anyone wiped out by their CDs.

Many of my friends/neighbors are widows in the 80 to 100 range still living in their homes of many years.

I could never advise them putting money in positions where the possibility of it not being there could happen...

Plus having ladder CDs at several different banks let's them sleep well at night... and peace of mind can be priceless.

 

[MAX-24-Dean]

We are up 25-28% YTD across all funds. I'd like 40% considering the past 24 months of burning things down. However, this is a long game... And our 15 year average is 10%. I carefully select funds and revise them when needed. The wife is about to go off and earn another $60k per year for us, which is why I'm pretty sure I'm retiring soon. I’m not that smart, but I can do simple math, so we always had savings goals.

By this statement you are smarter than most. Having financial investment goals never comes to a lot people.

 

[MAX-24-Dean]

I had a teacher in the 60's show us all how compounded interest works. Its the very small consistant investment over time that eventually seems to grows exponentially. Any way it worked for several of us.

 

[newbury]

and peace of mind can be priceless.

So true.
Some people are natural worry warts and can't sleep at night because of money matters.

 

[MoKelly]

I had a teacher in the 60's show us all how compounded interest works. Its the very small consistant investment over time that eventually seems to grows exponentially. Any way it worked for several of us.

Albert Einstein called compound interest “the eighth wonder of the world”.

 

[MossRoad]

My father got laid off three times when I was a kid (1 of 5 kids). While we never starved, we ate a lot of chicken, rice and beans (pretty tasty, as mom was a good cook), and it was often a tad chilly in the house in winter. I could see the concerns in my parents' eyes regarding financing.

Mom would say "Money isn't everything, but it sure helps."

It all worked out in the end. But it was stressful on them at times.

 

[NorTracNY]

RSKY - Investing isn't for everyone. I don't know how to help you, but your sister should NEVER be in charge of investments if she panics. You know her best. Maybe you can get her a book on investing and emotions. If she has a husband, maybe he can take over? Either way, if someone panics at a 10% drop, they shouldn't be investing. I'm a little blunt with my siblings and would point out that they are idiots in the situation you described. My guess is that's not the best approach here.

 

[RSKY]

RSKY - Investing isn't for everyone. I don't know how to help you, but your sister should NEVER be in charge of investments if she panics. You know her best. Maybe you can get her a book on investing and emotions. If she has a husband, maybe he can take over? Either way, if someone panics at a 10% drop, they shouldn't be investing. I'm a little blunt with my siblings and would point out that they are idiots in the situation you described. My guess is that's not the best approach here.

She is eighty years old and even though they are fairly well off she is very tight with her money. Everything now is what they will leave their son and grandkids. Her husband is in very bad health and unable to help her. I was the one that suggested she get an advisor to handle her investments several years ago because I did NOT want the job. Still, she doesn't do anything without talking to me or our sister.

She panics about a lot of things but gets over it quickly.

RSKY

 

[bdhsfz6]

A lot of good information here. One thing I'd like to add is this:

For those, including myself, who are living on investments with no other source of income, there is a principal "threshold" to consider.

When there is a dip in the market, as in 2008, there is a minimum level of principal required to allow for a successful portfolio recovery. During the dip, or recession, you still need living expenses, which can further erode that principal.
This threshold is difficult to determine and follows in the footsteps of that age old question, "How much do I need in retirement?" Sometimes adjustments to withdrawals or investment direction is necessary and requires sound advice from a qualified investment councilor.

 

[NorTracNY]

She is eighty years old and even though they are fairly well off she is very tight with her money. Everything now is what they will leave their son and grandkids. Her husband is in very bad health and unable to help her. I was the one that suggested she get an advisor to handle her investments several years ago because I did NOT want the job. Still, she doesn't do anything without talking to me or our sister.

She panics about a lot of things but gets over it quickly.

RSKY

OK, that I understand. So you've probably done the best thing. I wouldn't want to invest for someone else if they also were going to monitor and panic. I actually was put in charge of investing a relative's money. It was horribly managed by her ex-husband. I took it over, discussed things with her in the beginning and we never discussed how much she had. We just took care of her and her finances. If she ever brought it up, I just asked her what her need was for money and we'd take care of it. She grew up poor and worried about money all her life. I couldn't get her to understand that she had enough money to last her and to not worry.

Since your sister won't do anything without talking to you or your other sister, she should be ok. Emotionally selling is one of the greatest reasons people can't even come close to matching the returns of the market.