Another aside that kind of relates to this topic:
Some may be familiar with the "Die Broke" philosophy (I read the book 25+ years ago). Essentially, the last check you write should bounce. Spend down your assets as you go. While I in no way align with this philosophy overall, there are some learnings from it that might be useful to some. Here's one:
I know someone well who has a belief that helping his grown kids out with house downpayment, car purchases, paying off credit cards, etc. is not right, and not good for them. I generally agree. However, he has significant real estate assets that he plans to provide as their inheritance. I'm talking hundreds of acres of producing timberland, residential lots in established communities, commercial land and buildings, and the like. He has 2 kids who will jointly receive the property. My point to him is several-fold: That's a lot of frictional cost and work for them when they do inherit it, not to mention potential disagreements on when and how to dispose of the properties, etc. I urged him to liquidate just a part of it and take them all on interesting trips and experiences while he's alive (they already do this and enjoy it, mostly dutch treat), and can enjoy time with his grandkids more. Would he really get more joy knowing they get a lot of property when he passes, or spending quality time with them when he's alive? Sure, it reduces the size of the inheritance, but he's already said he doesn't believe in bailing them out of their regular financial decisions, so why not enjoy the fruits of his thriftiness while he can? Also, as he ages, maybe start the move to more liquid negotiable instruments than real estate?
I'm not a financial advisor, and it's not really my place to give him this advice, but if any of you were in the same position, how would you handle it?
Some may be familiar with the "Die Broke" philosophy (I read the book 25+ years ago). Essentially, the last check you write should bounce. Spend down your assets as you go. While I in no way align with this philosophy overall, there are some learnings from it that might be useful to some. Here's one:
I know someone well who has a belief that helping his grown kids out with house downpayment, car purchases, paying off credit cards, etc. is not right, and not good for them. I generally agree. However, he has significant real estate assets that he plans to provide as their inheritance. I'm talking hundreds of acres of producing timberland, residential lots in established communities, commercial land and buildings, and the like. He has 2 kids who will jointly receive the property. My point to him is several-fold: That's a lot of frictional cost and work for them when they do inherit it, not to mention potential disagreements on when and how to dispose of the properties, etc. I urged him to liquidate just a part of it and take them all on interesting trips and experiences while he's alive (they already do this and enjoy it, mostly dutch treat), and can enjoy time with his grandkids more. Would he really get more joy knowing they get a lot of property when he passes, or spending quality time with them when he's alive? Sure, it reduces the size of the inheritance, but he's already said he doesn't believe in bailing them out of their regular financial decisions, so why not enjoy the fruits of his thriftiness while he can? Also, as he ages, maybe start the move to more liquid negotiable instruments than real estate?
I'm not a financial advisor, and it's not really my place to give him this advice, but if any of you were in the same position, how would you handle it?