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Author: ntp07 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: How do you leave it behind ??? Date: 10/29/2000 8:51 PM
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Dear Fellow Fools,

I would like your suggestions as to how to leave money behind for prosterity. I am 29 year old female. I am not marry and have no children of my own. I know at the age of 29 most people would think about fun places that they would go instead of wills and trusts. However, I see it is wise to have a will or trust and in doing so I have being struggling with this issue.

I have 20 nephews and nieces. and my experience with my four adult nephews (age 18 to 25) is that three of them I gave them the money and taught them how to invest and showed them the power of compounding interest. Well three of them took the money either gambled or spent them, except one kid who is the youngest out of the four kids did not. He took the money use mechanical investment strategy and put in some of his hard earned money and build an IRA nest egg of 16k in two years.
With this experience, it just reinforced the idea of he who knows how to handle money will have money, and he who squanders them will have none. I don't want to leave money behind to those who will squander them, and there are some charities that I would like to give and know that it will be put to good use. So parents and grandparents out there how much are you obligated to give to family. I do not have children therefore I don't know how make this judgement. I have a net worth of 150k and life insurance of 350k which is half a mil.

your suggestions are greatly appreciated

thank you
ntp07
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25833 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/29/2000 9:33 PM
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ntp07 writes,

I am 29 year old female. I am not marry and have no children of my own......

I have a net worth of 150k and life insurance of 350k which is half a mil.


Why would a 29-year-old with no dependants need a $350,000 life insurance policy? Seems to me you'd be better off investing the premium payments.

intercst



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Author: ntp07 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25834 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/29/2000 9:51 PM
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good question!Why would a 29-year-old with no dependants need a $350,000 life insurance policy? Seems to me you'd be better off investing the premium payments.

^^^^^^^^^^
a term life insurance at work, taking out after the death of my father when I was net worth negative. If I were to die at that time then my family had to pick up the tab. I don't want to do that. the term life insurance costs me $200 a year, no big deal. but your
question does not answer my question though :))

thanks for the reply
ntp07

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25835 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/29/2000 10:06 PM
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I would like your suggestions as to how to leave money behind for prosterity. I am 29 year old female. I am not marry
and have no children of my own. I know at the age of 29 most people would think about fun places that they would go
instead of wills and trusts. However, I see it is wise to have a will or trust and in doing so I have being struggling with
this issue.


You have no obligation to leave your money to anyone.

For now just list the charities in your will.



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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25841 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/30/2000 5:01 AM
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So parents and grandparents out there how much are you obligated to give to family. I do not have children therefore I don't know how make this judgement. I have a net worth of 150k and life insurance of 350k which is half a mil.

You didn't ask for opinions from other single, childless Fools, but why should I let that stop me?

First off, with no one dependent on you, why are you paying for $350,000 of death insurance? Skip the life insurance, unless it's part of estate planning, and put those premiums to better use.

As for your legacy, I suggest you leave it all to charity. You have no obligation to leave money to any family member, but if you leave money only to the "worthy," you'll also leave a legacy of intra-family squabbles. Those who will use an inheritance wisely won't need it, and those who will squander it will defeat your purpose.

I do think it's nice to leave mementos, especially if there's some bauble that seems especially appreciated by one niece or nephew. When an aunt died a few years ago I told my surviving aunt that I'd like something to remember the deceased by, and when I had picked a glass bowl, my surviving aunt also gave me something of hers so that would be taken care of. I now have a couple of meaningful, not valuable, things to enjoy while I live and make sure stay in the family when I die.

TMF ExRO
Phil Marti

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Author: AnnW Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25844 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/30/2000 9:25 AM
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Well, first of all you really don't need the life insurance, even as a term policy. With no one else dependent on you, you can set aside enough money in your will to cover "final expenses", and that should be that.

For the rest of your question, you have *no* obligation to leave money to *anyone*, related or not. You can donate to charity, or to your favorite college, or wherever else you want.

When you set up your will you might want to set aside some specific things to some of your family, if there are particular things you own that you know they would appreciate. And you can state in your will that your wishes are to leave stuff to charity, and not to family.

And remember that a will isn't set in concrete -- you can change it whenever you wish, and when your circumstances change. There may be a time later in your life when you want to specifically provide for someone, and then you can arrange your affairs accordingly.

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Author: BGPenhollo Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25870 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/31/2000 9:15 AM
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ntp07 posted..

"I don't want to leave money behind to those who will squander them, and there are some charities that I would like to give and know that it will be put to good use. So parents and grandparents out there how much are you obligated to give to family. I do not have children therefore I don't know how make this judgement. "


Hopefully you will have many years left to consider all the alternatives.

Ignoring the insurance issue for the moment, your 150K at 29, will hopefully grow and at 11% with just $2,000 invest in a Roth or other retirement savings, you could be looking at $6.5 million in 35 years.

As your net worth continues to climb, you will have many more options.

You could set up a foundation now with as little as $1 million - some people are doing it with less. The foundation could give 1 year scholarships to HS graduates from your home town who go to your alma mater. It could be yearly grants to schools who research something you value.

As a parent and grandparent, we will be leaving money to our four children as well a 1/4 of our assets to the church we belong. We have set up a trust which will dole out the inheritance at 3 ages, 23,30, and 35 to our children.

We don't care what they spend it on and our hope is that at the age of 30 and 35, they will not squander it.

I suggest that you begin reading books on estate planning, charity giving, and foundations.

Good Luck with your future investments.

BGP

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Author: LRobi999 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25872 of 75377
Subject: Re: How do you leave it behind ??? Date: 10/31/2000 9:41 AM
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A not-so-Foolish fellow once said, "He who dies with the most toys, wins."

Not to say that life is a contest, but maybe one can still enjoy life while heading towards a Foolish retirement.

JMHO.
Lee




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Author: ntp07 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25933 of 75377
Subject: Re: How do you leave it behind ??? Date: 11/3/2000 2:53 AM
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Hopefully you will have many years left to consider all the alternatives.
^^^^^^^
yes, I do hope to have many years to consider the alternatives like get marry and have children etc., however I must address issue at hand.

Ignoring the insurance issue for the moment, your 150K at 29, will hopefully grow and at 11% with just $2,000 invest in a Roth or other retirement savings, you could be looking at $6.5 million in 35 years.
^^^
yes, my goal is to reach a million before the age of
40 and 20 millions before the age of sixty.

You could set up a foundation now with as little as $1 million - some people are doing it with less. The foundation could give 1 year scholarships to HS graduates from your home town who go to your alma mater. It could be yearly grants to schools who research something you value.
^^^^
with 150k net worth I couldn't do that, but as my net worth increases I will have more options and I am looking at my church, scholarship, boy scouts,
trust fund to build my community etc...

With the replies from fellow Fools, and discussions with my sisters, I now have a perspective from parents. And my conclusion is not to leave anything for my family. I came to this country in 1980
at the age of 9 with no English. I see in this country opportunities are out there, you just have to work hard and go out and grab them. I got where I am today with the generosity of Americans, and whatever,
I make in my lifetime will return to help others who need help under the names of those who had helped me.
Leaving one's assets to charity is a big break in tradition for my family and my culture, but the picture is very clear at this point.

As a parent and grandparent, we will be leaving money to our four children as well a 1/4 of our assets to the church we belong. We have set up a trust which will dole out the inheritance at 3 ages, 23,30, and 35 to our children.
^^^^^^^^^^^^^^^^

We don't care what they spend it on and our hope is that at the age of 30 and 35, they will not squander it.
^^^^^
will you explain the logic of leaving your children money at a different stage????

I suggest that you begin reading books on estate planning, charity giving, and foundations.
^^^^^
I am reading a book now on wills and trusts, do you have any good books in this topic, recommendations for me to read.

thank you for replying
ntp07


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Author: pekinrobin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25950 of 75377
Subject: Re: How do you leave it behind ??? Date: 11/3/2000 7:18 PM
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My suggestion is to spend your money yourself and if you must leave something behind when you die, leave it to a good cause. Don't ruin your nephews' character by encouraging them to daydream for years about all they will inherit when you die. Besides, do you really want people rejoicing when you die? You can worry about leaving money to individuals if you have dependent children to take care of. Even then, once they were adults, I would be leery of waiting to die before giving them the money. Spend it on a quality education or a quality lifestyle. I'm not surprised your nephews gambled your money gifts away. "Free" money does not encourage the development of a good character. Until you have children, I would suggest that the will provide for your aging parents if needed and otherwise go to some cause you believe in. If you don't believe in anything, well, that's another problem.

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Author: MVgirl Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25953 of 75377
Subject: Re: How do you leave it behind ??? Date: 11/3/2000 8:50 PM
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I'm single & no children by choice too. Have no life insurance. My organs are all for grabs, & most likely try giving what left to a Med. school if they'll take it. I don't want to take up any space, or plan on leaving much to leave anyone. My IRAs have charites as Benficiaries. Women's charites.

I would use this time to start to follow some interests. Especially the ones you can't do later. Bungee(sp?) jumping? Like I bred, raised, trained a few Good horses. You can't do that very well/safely at 65? Well the hands on mostly enjoyable part. My body is now falling apart. Looking back, I'm SOoo glad I did my horses when I did now. A mind with interests stays healthy at any age.

I don't believe you should live totally for the future as it may not be there. Somethings have to done when you CAN do them. So stop & watch the sunsets as you go.

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