Hit by bus scenario

[Cod Liver Oil]

If you get hit by a bus, what is your succession plan? Very tricky and sensitive area in a family context. @nwoodman suggested the Buffett 90/10 index template with a trustee to carry it out. 

Edited Wednesday at 10:57 AM by Cod Liver Oil

[thepupil]

In 2019 (when I was 31), I bought a 20 year term policy for $2mm for $900 / year. I doubt this is replicable today, but LT rates are higher so it may not be too much more expensive. 

 

That would pay off my mortgage ($700K) and give an immediate $1.3mm of walking around money and along with current other assets provide a decent lifestyle. 

As for management of assets, we have a few family friends that  are traditional financial advisors who put you in index like things and charge 50-90 bps. they won't steal your money. they'll just put you i 70/30 diversified stuff and take their parasitic fee. I'd be fine with that. 

 

It's a low probability event. if in that low probability event, my family has to pay fees to my wife's best friend's husband at northwestern mutual to put her in index funds but doesn't have to worry, I'm fine with that. no need to get too complicated with it in my view. 

 

 

 

 

[73 Reds]

3 hours ago, Cod Liver Oil said:

If you get hit by a bus, what is your succession plan? Very tricky and sensitive area in a family context. @nwoodman suggested the Buffett 90/10 index template with a trustee to carry it out. 

Is the issue inheritance planning or investment mix (or both)?  These are two distinct issues.  Regarding inheritance, a Will and/or Trust should suffice.  I don't agree with Buffett that you should necessarily discuss and disclose your wishes with beneficiaries in advance.  The simple reason is your plans or circumstances may change and until the time of your death, you are free to change or revoke your Will as often as necessary.  Regarding investment mix, this is a difficult task to manage from the grave.  There are plenty of resources available for anyone who wants to learn how to invest an inheritance and when all else fails, there are paid asset managers.  Buffett's suggestion for his spouse may be appropriate for him and a lot of folks but it may not be optimal for everyone.

[ICUMD]

Recently took out a 3 M term life x 10 yrs @ 49 yo.

~$3600 per yr.

 

With 2 young kids, feels like a good idea. 

If my investment portfolio performs well in the next 10 yrs, lll let it lapse.