How Does Not Having Heirs Impact Our Safe Withdrawal Rate?
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- čas přidán 9. 07. 2024
- My wife and I don’t have kids or any close family to pass on our wealth to when we pass. How does this impact our safe withdraw rate or our “number?” Is it bad to plan to use and give everything?
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I thought of this before. If you have siblings then put your assets in a non revocable trust that withdrawals using the 4% rule so your nephews and nieces are taken care of.
This family does not have any close family though. So you’d switch the beneficiaries to a nonprofit that you support. The 4% rule will help make your money last longer so even after you pass away you’re still supporting the nonprofit cause 👍
If you really want to die with zero then you wait to 70 for social security and supplement this with an annuity once your assets drop to a specific dollar value.
My dream would be to spend my last retirement dollar and then die. I have no plans to leave money to my kids. I will help them understand how to build wealth and teach them the habits they need to utilize to make their own way in the world but I don't plan to support them from beyond the grave.
Glad you’re not my parent. I plan to leave a great legacy to my kids
Just understand that this will determine how your descendants will see you.
That’s pretty selfish parenting, terrible parent
@@reaper-sz5tm Yeah, teaching kids to be self-sufficient adults, the very definition of abuse. Better that they depend on my death and handed a fortune to be able to support themselves.
@@tckiefer you probably don’t even have that much anyway lol
I think if there is no kids you could up it to 6% withdrawal rate probably.
As far as I know, most safe withdrawal studies only care about you not running out of money before you die with no regard for heirs or what happens to the money after. So upping the general 4% safe withdrawal rate by 50% just because they don’t have kids does not seem like it will hold up in any less than ideal situation.
@@kennycrumpin most scenarios with 4% though, people are left with more money than they started with.
Or more. What I'd do is decide what lifestyle I wanted late in life, after all traveling and stuff is done, get a $$ value for the annuity to support that, delay SS until 70.
Then I'd withdraw 10-15%, whatever is necessary to glide into that endgame, living the final years at a high end retirement home.
You'd have insurance for any final expenses like memory care if required.