I was reading the Huffington Post this morning and came across this article on how 46% of Americans die with no assets or assets of less than $10,000(the basic cost of a burial).
It is a sad fact, one I am sure is equally reflected in other parts of the world. Why is this? Some may have spent their way into the hole, keeping up with the Joneses. Others may have been in this situation due to death of a spouse, illness, or unemployment or the collapsed real estate bubble.
Every person needs to save for a rainy day so that your debts are not passed on to others like a bad inheritance.
that is very sad when you think about it. Mind you I am always telling my parents to spend their money and enjoy their lives, and not leave anything for the children or grandchildren.
ReplyDeleteGill
I tell that to our Mothers as well, but my Mom has little to give and DHs Mom is old country and believes she cannot spend what she has, must leave to her kids.
DeleteMaybe the high cost of nursing homes and similar care just sucks up the rest of people's assets?
ReplyDeleteVery true, unfortunately though there needs to be caps on what medical providers and nursing homes can charge for that reason. In Canada we pay much higher taxes so basic healthcare is a right of all citizens, regardless of income. It is the number one reason I still live in Canada (I am a dual USA and Canadian citizen born in the USA and moved to Canada when I was an infant).
DeleteWell, the reasons why are very clear to me. It goes back further if you read American history, but since the 30's, FDR's New Deal and Social Security, most Americans have become lazy. They expect the government to take care of everything. Why save if you will have SS? HA! Sadly, many are learning too late they should have been depending on themselves.
ReplyDeleteI completely understand the writers point(though true, doom and gloom sells better)but the flip side to that can also be something like this:
If one pays off their debt and provides for their funeral, has enough to live on month to month, then I say start giving away what you can. My cousin's MIL received a HUGE settlement due to a class action lawsuit. She knew she would eventually become very ill, and die due to the reason for the lawsuit. Once she became very ill, her lawyer advised her to start giving away $10,000 per year to each child and grandchild(no taxes paid on $10,000 or less). By the time her oldest grandchild was five, his college education was paid for. She died peacefully and as pain free as possible and only had $5,000 in her regular account,(a separate acct. had been set up for her medical needs) at her death. Her kids did not have to fight over money or furniture etc. as she had started to give that away too. Not to mention the huge inheritance tax NOT paid to the US government.
It is wise to have enough money for shelter, food and insurance, but a small part of me does not want the US government to get their hands on any of my children's inheritance. So leave as little as possible. Each one of our kids will receive $10,000 at our death. We are giving wisely to them while we are still here, but have no desire for them to blow their inheritance, and two just may. I am totally off the point here and rambling, but am so behind what Bill and Melinda Gates are doing.
Call me mean and heartless, but I believe this great country's back is going to break. Far too many depend on social programs. Far too many want a free ride. Some have wised up, but not enough. I hope it does not happen, but in the next five years, riots may erupt here as the middle class disappears, along with the ever raising government debt.
It is up to each individual to provide for their older years and rainy days, not any government.
jill
I agree. We refuse to put in old age pension into our retirement planning as cannot rely on it. This past year in Canada they changed the age which you can collect, which directly effects both hubby and I. Best not to rely upon it at all - if it is there when we retire we will use it as extra money, not our daily bread and butter. I like the planning your cousin's MIL did - no sense letting the government take their chunk upon death. We have no inheritance taxes in Canada (nor lottery taxes) but still people should think about giving in life versus death. There are estate taxes to be paid though.
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