Passing years have new paradigms. My grandfather died young in an accident, and my parents inherited 1/3 of the business (my dad was working in the business and learning as #2 guy; this was worked out when dad was going to get work out of state and move the family - GF decided he needed to develop a plan with my dad). Dad was very successful growing the business and diversifying his assets into real estate; he had to borrow to buy out my mom’s step mom and her half brother, so I grew up with very frugal years with the bank note hanging over dad’s head. Dad died at age 64 and my mom died at 77 - and most of what they built up was left to siblings and me. Four of us have children, and the inheritance money came at a good time to help us with grandchildren school and other expenses.
My in-laws had modest jobs; their one asset is their paid for home (a single brother left them assets at his death which allowed them to in recent years add a bedroom, bath with shower and w/c access, and laundry room) which they wanted to leave to their sons - and they have done so. They continue to live in it and have enough pension/SS to live comfortably there. They are both 89 and when one of them dies the other cannot continue to live there alone. They have now agreed to more help coming in 6 days/week plus 5 days/week meals on wheels (they are in a small town, and really like the lady that is coming in to help them). It was a process getting them to spend $$ on help coming in (and the costs were reasonable, like $16 - $22/hour). They already have had handy men, construction, deep cleaning and other contract help worked out, and in a small town, you can get this kind of help as they know lots of people in the area. They had a small chunk of ‘savings’ which BIL has wisely invested with decent return. After they had the main level bedroom/bath, they still used their upstairs bedroom until the stairs got to be too much - in some ways it is dealing with change, and in other ways it is hanging on to what they can do and control/dignity.
H and I are in good health. We will do trips (as we do now). Both DDs have had great education and travel paid for by us and also from inheritance. I see them where I was when I was their age - although my parents were ‘comfortable’ financially when I was in college. H and I will be ‘comfortable’ at age 65 with medicare primary health coverage and our assets. We are in much better health than our parents, although I did survive a brush with cancer at age 53 that could have been fatal (stage III very aggressive). My dad had died of cancer - better treatments and survival now than in 1995.
There are kids that grew up as ‘trust fund babies’ - and certainly that entitlement may have stunted their own growth and opportunities to be more independent financially, and developing to being all they can be.
^ I’ve known plenty of ‘trust fund babies’ who went on to do great things—and some who made some bad choices, knowing they had the trust fund to fall back on. But then I’ve seen plenty of people without trust funds make bad choices, too.
Character, a moral compass, care and compassion for others, a sense of responsibility to and for one’s self, one’s family and friends, and one’s community—these things are neither negatively nor positively correlated with having a trust fund, IMO. I’m pleased to say that I see all these traits in my daughters, and I think DW and I can take some credit for that. That, and a good education, are the most valuable things we could ever give them. Unless DW lives to 120 (I surely won’t make it that far) there should be some assets left over when we pass, but it won’t be a fortune, and it won’t be life-changing. My goal is to have enough for DW and I to live comfortably but not extravagantly in retirement and to never become a financial burden on our children; to help our children here and there if needs arise; and perhaps to help them get started on college savings for any grandchildren. Anything that’s left over when we die is gravy.
DH and I have been discussing taking Amazon up on its program to help build new direct delivery partners. We have the capital and the experience. And I have no doubt it would make money. But push comes to shove I don’t want to work that hard and I like DH better as a semi-retired guy than as a starting a new business guy at 57. I wish we knew some smart and reliable younger person we could partner with. Our kids are too young. I just prefer a slower life with vacations to more money and hassle. 20-75 employees and dozens of vehicles. Nope. Thanks.
a $200B tariff on a $20 trillion economy is like a flea bite on an elephants behind.
the US economy is running on all cylinders and any tariff war would have to get a LOT bigger to have a measurable effect on the US stock market.
It has been interesting to see how strategically the retaliatory tariffs have been applied. They have been largely targeted on industries that are in important republican voting blocks.
“a $200B tariff on a $20 trillion economy is like a flea bite on an elephants behind”
It’s still a sizable chunk IMO. It’s just starting and will affect different industries/jobs and not others. It will have impacts but the effects will be felt unequally. Ask Harley workers how they feel.
Our WA fruit growers will feel a lot of pain. I fear that some cherry orchards will be cut down or abandoned… it takes a long time to grow a tree to fruit producing maturity.
That might have impact on some of the “best retirement places” in Eastern WA.
Wait, I thought the tariffs were gonna be great?
Oh, I guess that depends upon your industry. There are going to be some very unhappy people when the full effects of targeted tariffs are felt.
We welcome it in our state. Factories are starting up. Maybe this will delay corporate farming expansion. I would welcome that. I am all for it even if I have to pay a penny more for a nail. We need to take care of our middle class. I mean the real middle class, not people who earn upper class income and yet calling themselves middle class. We need jobs for our average young people not just for brainy young people.
Went out and bought a new Prius today. We’d been thinking about it, but the looming threat of automobile tariffs gave us added motivation. If that happens the price of all autos will go up as there’s really no such thing as a 100% U.S.-made car anymore. The automakers all have integrated supply chains with lots of parts coming from Canada, Mexico, Japan, and China, and they’re already being hit with sharply higher steel and aluminum prices. And of course the Prius is a straight import so the full tariff would apply.
I’m planning to start a phased retirement in a year and fully retire in four. We’ll probably do a lot of road trips to warmer climates to escape the Minnesota winter. Best to get a high MPG vehicle now before the prices spike, which will also make used cars more expensive because more people will hold onto their cars longer, limiting supply in the used car market.
I was a bit surprised at how gasoline prices are significantly more in some states than others - so for 8 gallons of gas a $4 price difference (thankfully my state was the low end price). Interesting how some people rushed to more fuel efficient vehicles, but once some gas prices dropped, some people went back to big SUVs and big trucks.
Just enhanced my ‘sunset career’ by adding a second PT job as a nurse educator at a local community college. Feathering that nest egg and increasing my SS after 18 years as SAHM. I have worked in higher ed before but at University level. This should be interesting…Also have a plan to get to the gym/pool for needed health boost with the new job.
DW has a Prius, and I do not find the ride comfortable at all. I can’t imagine taking long road trips in that car. Hopefully you find it more comfortable!
Here’s a question for all the retirement-funding experts here (and no, I’m not being sarcastic): is incurring credit card debt to buy tickets to professional baseball games good, bad, or neither? The newest SCOTUS nominee did so for several years. He says he was paid back by the friends for whom he bought tickets. Would this make financial sense if one were getting really great credit card points or rewards or would it never make sense because of the interest payments and the risk the friends wouldn’t cough up the money for their share of tickets? I realize that I might not be a sufficiently ardent sports fan to understand spending tens of thousands of dollars and incurring debt for this purpose.
His friends might have paid him back quickly enough that he had no interest to pay. If they are his friends, I assume he knew they would pay him back promptly. Also, there is value to incurring goodwill with friends. Plus, the tickets have value so he had assets he could sell if someone didn’t cough up the cash.
Not knowing more details, I don’t know enough to claim it is a boneheaded move.
Thanks, @doschicos. The fact of the resale opportunities didn’t even occur to me. The value of incurring goodwill with friends did. “Hey, here’s Brett, he can get us Nationals tickets!”
Plus it may have been worth the hassle to him to coordinate the purchases if he was racking up the credit card points earning airline miles, hotel nights etc.
edited to add: The cards too could have earned cash back which usually is 1.5-2%.
I fear that some cherry orchards will be cut down or abandoned… it takes a long time to grow a tree to fruit producing maturity.