About 30 percent of us will die before age 65. Do you have a plan B for your investments, in case you're unlucky?

[jwlickliter]

@hiltonmanonga Not entirely exclusive but guilt is a powerful thing. We have a 2nd kid to put thru college and I’d like to retire at some point.

 

[starkiller]

@3revan The same people who may care for you now.

 

[talj]

@3revan I'm guessing your family.

 

[jaxon13]

@johnchristianforum Plan B is pretty simple, have a will, and have beneficiaries designated. I would also teach my beneficiaries about compound interest, so they have a chance to get way ahead, if they don't spend it on hookers and blow...

 

[daniel1136]

@jaxon13 “I spent my money on wine, women and song. And the rest of it I wasted!”

 

[ogeletarip]

@johnchristianforum Plan B is a living trust which is designed to manage what happens with the kids, 401k, brokerage accounts, assets, etc. In the trust I have structure around how money will be handled and at the right point distributed. I don't buy into life insurance as I feel that it is a money sink, but that is personal opinion many will argue the other way.

Anyways death is 100% guaranteed, you should always have plan for it because you don't know when and how.

 

[jferna6]

@ogeletarip Term life insurance has a place for younger folks with families that may not have significant investments to take care of the family should something happen.

It doesn't sounds like you fit the above

But in general I agree, insurance and especially the type and amount most people are advised to carry is nuts.

 

[isaiah9six]

@johnchristianforum Yes, I don’t put my heart and soul into saving for retirement...I put in more than enough so that I can live comfortably, but I also want to enjoy myself in my 20s and 30s. It’s about balance

 

[jellis1975]

@isaiah9six Spend 80-85%, invest the rest worked for me.

 

[resjudicata]

@johnchristianforum Many people ask me about this. How if I die young and my ingrate children will waste it on coke? Well this far I want my money to go to my partner. I will not care by then, hell I will disperse into thin air. But what I am most afraid is if I don't die. How if I live to 95? Lonely, everyone I know have died, and I outlive my retirement plan. Some people said 'your kids will take care of you' but I'd rather not rely on my hypothetical future kids.

 

[suzyshopper]

@johnchristianforum As someone who just turned 52, that's a scary statistic. Then I realized that it's not accurate, and the real number is maybe 20 or 25%. Then I realized that I've never smoked, have a great BMI, eat healthy, don't drink to excess, have never had even remotely suicidal thoughts, have no risk factors for opioid addiction... my odds are better than they seemed a few minutes ago.

On the other hand, I have fuckall for retirement savings, so I got that to worry about.

 

[spiritfilled_lovefilled]

@johnchristianforum If you die, what happen to your financial obligations? Will that take a big chuck of your asset?

Example:
- apartment with months left on the lease
- credit card debt, no matter how small
- car loan
- taxes

 

[deborahjoy429]

@spiritfilled_lovefilled Check your lease. Some leases have a void on death of lessor stipulation. If yours doesn’t, chances are your landlord will negotiate with your executor to terminate the lease early. They want it rented out to living people about as much as your executor wants to not pay for the apartment. There was a discussion about this last week on /r/landlords.

 

[kramartini]

@spiritfilled_lovefilled Credit card debt.. Lol.. They cant chase a dead person.

 

[silvia12345]

@johnchristianforum Setting up my sister as my beneficiary for all of my accounts was one of the first things I did. I'm 26 with no health problems and have only been investing for a year.

I know anything can happen though. I could get hit by a car tomorrow. I want it to be easy for my sister to obtain my accounts with no bickering. She plans on having a family and is the only one who intends to do so in two different family trees. I can't think of a better person I want to have my money

 

[jwlickliter]

@samlon If she inherits your IRA/401k, she’s required to take RMDs. Depending on the account, she may be able to take them over her lifetime, but she will have to take them regardless. Can’t shelter money forever. Uncle Sam requires his cut.

 

[samlon]

@jwlickliter That’s fine with me. I have 50% if it in ROTH, but honestly take half and live. Take the other and build multigenerational wealth.

 

[lady_t]

@johnchristianforum I was doing some portfolio calculations with mortality probabilities once. It was really depressing seeing just how often death well before the mean life expectancy occurs. I just stopped the entire exercise and decided to plan for the mean.

If I die, everything will go to my spouse. When we're both dead everything will go to our son.

 

[jessicams]

@johnchristianforum Honestly, I don't really care.

I have beneficiaries setup on my 401k and IRAs, but I'll be gone, so I mean...whatever. Put it in a giant bonfire and light it on fire if you want.

 

[resjudicata]

@johnchristianforum That data is nearly 30 years old. Life spans have been decreasing for Gen X in particular (with suicide being the fastest growing category of pre-retirement death).

https://www.popsci.com/life-expectancy-declining/