• Leave Money Behind or Die Broke?

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    Her and I have a year end goal to reassess our retirement portfolios, including making goals, determining asset allocation, and rebalancing. In order to get a head start at this process, I’ve been tinkering with some online calculators that try and assess how much money I’m going to need when I retire. The answers didn’t surprise me too much, as the values ranged from a few million to…a few more million. And that’s predicting that I’m going to live to see my 85th birthday.

    And then I thought: how convenient would it be to spend my last dollar on an ice cream cone, eat it, then have a heart attack. I would have spent every last dime that was in my name. No waste.

    Conversely, I also thought how much it would suck to get hit by a bus the day after I retire, leaving millions behind to enjoy what I worked hard for. Or just ramping up my retirement savings so much that I leave behind a very large gift to my family (who would then be dysfunctional enough to fight over it and ruin it for everyone).

    I suspect that something in-between those scenarios will happen. But that brings up a question: do you want to die broke, or do you want to leave money behind for your family? Does your retirement planning try to take either of your predetermined scenarios into consideration?

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