# Are you going to leave anything behind?



## Sampson (Apr 3, 2009)

All this discussion about 'how much you need to retire' has got me thinking to ask, "Are you planning on leaving anything behind after you pass away?"

I know some people's figures for retirement nest eggs assume draw down of the principle balance, others (myself included) assume that the portfolio can be maintained in perpetuity without drawing on the principle.

My $2.5M at 55yr (for a couple) assumes a withdrawal rate of 4% (dividends mostly - which I expect to increase at the rate of inflation) and this nest egg will be passed on.

Obviously those withdrawing the principle should be able to retire sooner. 

What are you going to do?


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## archanfel (Apr 7, 2009)

Trust funds will be set up for each kids and grand kids. Every time they come to visit, $1000 will be added to each fund. Every time they make me happy, $1000 will be added. Every time they make me angry, $5000 will be deducted.  

No seriously. I suspect I will leave behind a house + some cash. I doubt it will be a lot though since inflation should have eaten most of them and the house would be in pretty bad shape.


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## ethos1 (Apr 4, 2009)

Sampson said:


> All this discussion about 'how much you need to retire' has got me thinking to ask, "Are you planning on leaving anything behind after you pass away?"
> 
> What are you going to do?


The quick answer is NO!

However, not knowing when the inevitable will happen, the plan is to spend it all and to leave a trail of debt behind me.

I would have no problem doing a chip program sometime between 65-70 and spending it all rather than leaving it to our greedy (hands out) children.

Hopefully for me it will many years after I have passed age 65, with 80+ being a good number.

I am depending on the OAS pension network to keep me kicking till the end - which is doable


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## FrugalTrader (Oct 13, 2008)

My plan is to _help_ my kids out with the major financial points in life while I'm still alive and when they need it most - University, wedding, first house.

However, they shouldn't expect anything when I pass as they'll most likely be financially self sufficient at that time. That is providing that I live to be an old man. 

Any money left over will pass onto my wife, and after that a lot of it will go to charity.


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## Hazelnut (Apr 10, 2009)

I plan to do what my dad did and that was to "gift" money to us while he was alive. No money lost to probate fees and he got to see what we used it for. Win win.


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## Retireat50 (Apr 6, 2009)

My kids will be happy. Enjoy!!!!


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## DAvid (Apr 3, 2009)

I plan to leave an unpaid invoice to the Undertaker!


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## mfd (Apr 3, 2009)

I intend to pay for their education but I have no intention on living like a miser so I can leave everything behind for them. I'll spend it how I want to spend it and if there is anything left then they can have it. However I am open to helping them on some of the points FT mentioned depending on the situation.


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## Jon Chevreau (Apr 4, 2009)

I still chuckle over the line in the book, Die Broke: "The last cheque you should write should be to your undertaker, and it should bounce!"

www.financialpost.com/fd


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## CanadianCapitalist (Mar 31, 2009)

I think it was Warren Buffett who had a great quote on the topic:

Give enough money to the kids so that they can do anything but not so much that they can do nothing (or words to that effect).


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## archanfel (Apr 7, 2009)

Two more things to consider:

1. Insurance. I'd think most kids will get some insurance payout, although I am against insurance with a passion, so I probably won't get any.
2. Annuity. Would a lot of people get annuity instead of investing the money themselves after retirement? If so, the kids probably won't get anything although some annuity can be inherited.


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## Patricia (Apr 3, 2009)

Hope to be able to gift money to the girl's along the way and that when the time comes for final disposition of assets that there will be something left over for them. At the same time we don't plan on living so frugally that we can't enjoy the 'golden' years.


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## ShowMeTheMoney (Apr 12, 2009)

I hope to help along the way, as my parents have. Leave a little something if possible (the women in my family live forever, I expect I'll do the same). But I want my kid to be self-sufficient and independent. My worse fear is I'd have to depend on her in my old age. I'd rather over-shoot and leave her more than she needs than under-shoot and be needy myself.


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## Amanda (Apr 3, 2009)

I'm 26 years old and bought my first place 3 years ago. My parents' philosophy is that we need their help financially now as opposed to 30 years from now (hopefully) when I'm in my 50s and my own children are in their 20s. 

The rents have helped me every year by giving me what I need to pay the 15% of my mortgage that I am allowed to pay without penalty. Of course I do my best to save up my own funds throughout the year so they end up giving me about 10 000$ every year. This money is MUCH more useful now than it would be years from now, because I'll have my condo paid off in 2 years (5 years overall).

If they were to leave me anything when they die it would be going to my own children in the end.


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## stephenheath (Apr 3, 2009)

Not knowing how long we'll live, I'm also hoping to retire with enough principle that I can live off the interest without drawing down... but we don't have, and won't have kids ourselves. 

We may leave our principle, when we're gone, to our niece, but that's assuming as part of the bargain when we're in a nursing home she comes by every few weeks to make sure they're still taking care of us properly... if she doesn't, then it all goes to the cat


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## Mintycake (Apr 13, 2009)

I plan to help pay for University but not fully fund it, and I will help at key points in life (first house, etc) if the kid has proved themselves to be financially responsible. I don't plan to leave an inherritance though. I think the kid could use the help more at key points in life rather than when they are a senior themselves.

Unfortunately in my family, "inherritance" is used as a bribe to make people behave or do things that the elders want, which I think is downright wrong.


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