69 5 Posted March 24, 2009 Share Posted March 24, 2009 I was having a fun discussion with my friends last night and it's something I've spoken about with my brother and sister too. Many parents of the generation mine are (70's) seem to do a lot of hoarding with their savings. With the credit crunch and everything, there's been loads of interviews with oldies who are complaining that they suddenly can't live on the interest that their savings have brought them until now. Question is, if they were living on their interest, it means they have a fair stash of cash. So why not use the cash they have spent their life saving up 'for their retirement'? Why live your life saving up, only to not spend it and just hoard it? It's not as if us kids are struggling to live - we are all independent and doing ok. Know someone who said that in an ideal world they would spend their last $ just before they die and if they died with any money then they would have failed! I wonder how younger generations will be on this. I imagine with more of a spending culture, things will be rather different. Link to post Share on other sites
thursday 1 Posted March 24, 2009 Share Posted March 24, 2009 I suppose the prob is you just don't know when you'll die. Would hate to spend it all and still have another 10 years to live. Damn. My wife has 3 retirement policies on. Saving a fair bit too. Maybe I'll hang around her. Link to post Share on other sites
gerard 6 Posted March 24, 2009 Share Posted March 24, 2009 Better be nice. Link to post Share on other sites
brit-gob 9 Posted March 24, 2009 Share Posted March 24, 2009 Quote: I suppose the prob is you just don't know when you'll die. Right. But a few conservative calculations could give you some kind of idea. Know what you mean. My parents are fairly well off, but not big spenders. It's the way they were brought up and they can't change it. Link to post Share on other sites
thursday 1 Posted March 24, 2009 Share Posted March 24, 2009 and at that stage in life, what is there to spend it on. House, probably all paid for, kids married and have their own families. Retirement policy paying nicely. Perhaps an annual cruise for 3 months at a time. Some blue rinse every now and then and bingo money. Link to post Share on other sites
pie-eater 207 Posted March 24, 2009 Share Posted March 24, 2009 Well, my parents are a bit like that. Not stingy but they are probably a bit too careful with their money and don't really spend on things 'they don't need'. But they seem to be happy and so that's all that matters I suppose. Link to post Share on other sites
long-haired freaky person 0 Posted March 24, 2009 Share Posted March 24, 2009 Don't need to be rich, don't particularly want to be. Using what I have to enjoy life would be ideal. Link to post Share on other sites
gareth_oau 2 Posted March 24, 2009 Share Posted March 24, 2009 Its my aim to reire with a good range of assets, plus a good superrannuation fund, so I can enjoy my retirement (including that snow chalet in canada etc etc). At the same time, i've got good life insurance, which I will continue to pay) as it is my strong desire to ensure that when I go, my kids will be set up for life Link to post Share on other sites
thursday 1 Posted March 24, 2009 Share Posted March 24, 2009 Originally Posted By: long-haired freaky person Don't need to be rich, don't particularly want to be. Using what I have to enjoy life would be ideal. dude, you've completely missed the point of this thread and hairdressers Link to post Share on other sites
gareth_oau 2 Posted March 24, 2009 Share Posted March 24, 2009 In australie, there is a growing trend for something called "reverse mortgages". a "middle-aged" home-owner will refinance the home, and use the cash to enjoy their maturer years, with no repayments necessary. when the home-owner dies, the bank gets as much of the house necessary to cover the amount loaned, plus interest accrued. This means there is much less left over for kids to inherit! Link to post Share on other sites
Rag-Doll 0 Posted March 24, 2009 Share Posted March 24, 2009 everyone knows that the guy who dies with the most toys wins. Link to post Share on other sites
indosnm 0 Posted March 25, 2009 Share Posted March 25, 2009 Originally Posted By: gareth_oau In australie, there is a growing trend for something called "reverse mortgages". Yep, I personally don't think they are great idea because people could get slack and have that option. Fine if you don't have kids or want to take much though. And they work best if you take regular small payments rather than lump sums (for obvious reasons!) Link to post Share on other sites
HelperElfMissy 42 Posted March 25, 2009 Share Posted March 25, 2009 My Nan is so much like this that she will go to the senior citizens club for the lunch and games (carpet bowls) and take a couple of containers with her. They serve a 3 course lunch and she feels she only needs the main for lunch - so she gets them to serve her soup, roll and dessert into the waiting containers which she takes home for dinner!!! This from a woman who withdraws a set amount each week to keep her bank account under the limit for receiving a part pension (the $ she gets is nothing, but the discounts for electricity, phone, car rego, bus fares ect is what she is after. She cant spend that much (because she is a product of wartimes and fruglaity) so she is stashing it under he mattress. My mother cleaned out her house and loaded it all in a safe that she bought and installed a few months back, and they discovered over 10,000 dollars stashed all over the house! Mum goes over and does a cash search regularly now. She is happy - but we keep telling her to spend it - none of us need it - we are all set...her kids and her grandkids! Although I am sure my brothers would be thrilled to kiss goodbye to thier mortgages. Link to post Share on other sites
Go Native 70 Posted March 25, 2009 Share Posted March 25, 2009 Although I have accrued some reasonable assets and live very comfortably I'm not worried about having enough money till I die because I know we will be getting a bucket load when my and my wife's parents kick it (I'm definitely hoping they don't live too long). The inheritances we will receive are certainly factored into my current lifestyle and possibly one of the reasons I have virtually no interest in being overly financially successful in my own right. Although I've never really been overly interested in career and money. Will I be able to leave any to my kids? I do expect so but I certainly have no intention of living frugally through my elder years just so I can pass on some large legacy. Link to post Share on other sites
foreversnow 5 Posted March 25, 2009 Share Posted March 25, 2009 Well I know I am going to die poor. We have nothing and the only saving we do is for our ski holidays. We don't have any kids so if there was any money it would be going to delegated charities. We have a great life we are both healthy and very happy so you know what at this point that is all I can ask for. I have lost to many young friends to illness not to be enjoying my life while I can. The way I look at it get out and do as much as you can while you can. Mind you I am very jealous of my friend who just inherited 37 mil through divorce. Link to post Share on other sites
pie-eater 207 Posted March 25, 2009 Share Posted March 25, 2009 37 mill?! :eek: Link to post Share on other sites
gareth_oau 2 Posted March 25, 2009 Share Posted March 25, 2009 At the moment we tend to live to our means, and prefer to spend rather than overly invest. we do this for two reason, 1/ because I'm very materialistic, love toys and enjoying myself!! LOL, and 2/ because we want our kids to have the best possible childhood we can afford to provide them i remember as a kid (1 of 4) growing up with very little (but always healthy and well fed). Its those memories I dont ever want my kids to have (and besides, hopefully they will return the favour one day and choose me a nice retirement home LOL) Link to post Share on other sites
SKI 15 Posted March 25, 2009 Share Posted March 25, 2009 Ah but currency was the 37 mill in? My parents are also of the 'not really spending too much' and 'don't buy if I don't NEED it' thinking generation. As with others though they seem very happy in themselves. And my siblings and I will inherit more! I want my parents to live a long and happy life. Link to post Share on other sites
thursday 1 Posted March 25, 2009 Share Posted March 25, 2009 I don't want to inherit anything. Looks like my dad has got the message at the rate he's spending. Link to post Share on other sites
NoFakie 45 Posted March 25, 2009 Share Posted March 25, 2009 Thrift is a good thing but it's crazy to do without and then leave a fortune to the cat! A lot of the state pension schemes look unsustainable to me over the long term. A lot of them were conceived in better times with more, better-paid workers and fewer, shorter-living oldies and less sophisticated, cheaper medical care. It seems inevitable that provisions for old people will fall per head in real terms. Japan's pension scheme in particular looks well dodgy. Its the elephant in the room no-one wants to talk about. If you want to get a house or start a business, a bit of spare cash from your folks is a massive headstart. Increasingly so, I reckon. Link to post Share on other sites
BagOfCrisps 24 Posted March 25, 2009 Share Posted March 25, 2009 Thats why I'm best buddies with... Just make sure your folks arrange their money to minimize the impact of inheritance tax! Link to post Share on other sites
HelperElfMissy 42 Posted March 25, 2009 Share Posted March 25, 2009 There is another side to this topic that no-one has touched on yet. The ugliness of surviving family arguing over said inheritance! I have seen it time and again - and often over very little. For some families it can be the reason relationships break down - brother and sister never speaking again because they percived the split to be unfair. For others those with decorum stand back while the vultures swoop, and get left with very little despite being the one who perhaps should have had more for one reason or another. Personally I would rather have one meaningful item from a loved one than fight over a stash of cash, but some people seem dead set on scooping up as much loot as they can. Cant say as a nice uncontested stash of cash would ever be unwelcome - just saw a good friend pay off her house, buy a merc and book a 2 month luxury holiday through Canada thanks to her spinster aunt passing on and leaving her a nest egg - but I wouldnt want it if it came with a dose of poisen if you KWIM Link to post Share on other sites
JA2340 16 Posted March 25, 2009 Share Posted March 25, 2009 See where you are coming from, M. My sister and I encourage the oldies (dad's 88 and mum's 85) to spend the money to ensure that their life is comfortable NOW! Stuff whether they need it! If it will be nice, then get it! Fer example, we got them to splash out for a remote for the garage door, a new automatic car (because mum has to do all the driving since dad lost his sight in both eyes) and heater/exhaust fans for the bathrooms. Dad bitched and complained about the cost, but it will make their lives so much easier. Both Sis and I are OK, not well off, but happy with our current situation. Could always do with more cash, but not at the expense of their comfort. If they live to 150 (by which time I'll be well ancient myself!) I'll be happy. No intention to get their cash any sooner than then. Link to post Share on other sites
indosnm 0 Posted March 26, 2009 Share Posted March 26, 2009 Mama, all that can be avoided if one takes care of their estate planning properly. Binding noms for super are un contestable, and trusts set up in wills with precise instructions are vital. People make the mistake of assuming that their assets will be passed to the right people upon death.. not to mention not understanding Joint tenants and tenants in common. Deal with this on a daily basis and it's a real eye opener! Link to post Share on other sites
HelperElfMissy 42 Posted March 26, 2009 Share Posted March 26, 2009 Its not just the cash either Indo. When my grandmother passed away it was awful! Her jewel box, the linen closet - all fair game. My parent - Dad was her eldest surviving son just stood back and watched the younger siblings and siblings in law and thier children pillage at will. After they had taken thier fill and argued over a set of earing here and a crystal vase there - my parents cleaned the house, got it ready for sale, organised the sale of all the unwanted items and divided the cash between the siblings equally. At this stage I have a will leaving everything to hubby, and he to me - and in the event of us both dying without writing another will it goes into trust for my parents to raise our boys. However once circumstances change a bit I will be making sure things are itemised. I would hate to see my kids arguing over stuff like that, or feeling wronged. If I live to be 80+ I reckon I will have stickers with peoples names on the underside of every item I own! LOL Link to post Share on other sites
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