Do you budget with your sig other ?

[ChrisoftheNorth]

That complicates things, sure...but no amount of money is going to make a situation where you get iced any easier. Pay off all debts so the fam isn't in a hole, maybe make sure there's funds for college or school or whatever, and then it's on them to figure out the path forward. Sucks, but

I mean, a decent $500k policy covers the mortgage payoff plus college education savings for the kid. Allison should be able to live off her salary supporting a kid. Especially if there is no debt.

Exactly. No need to go crazy.

[J-Ho-Fo-Show69]

Don’t you have a 401k and savings? All that would go to her

Yeah, like ~$70K in cash, quarter mill in 401K plus she has maybe $150-200K in 401K. What is the 401K sitch if I die, can she access prior to retirement? The good thing is we only owe like $200K on our house and it'll be paid off in 12 years due to 15 year mortgage, so all in all I feel in decent shape to be 35. Still though, she has like an upper five figure salary... not a lot of dough to support herself and a kid if the 401K stuff isn't accessible.

You'll want to name her as your beneficiary on your 401k policy. Even then, it'll still go through probate. From there, she could take the payout (minus taxes).

[D Griff]

That complicates things, sure...but no amount of money is going to make a situation where you get iced any easier. Pay off all debts so the fam isn't in a hole, maybe make sure there's funds for college or school or whatever, and then it's on them to figure out the path forward. Sucks, but

I mean, a decent $500k policy covers the mortgage payoff plus college education savings for the kid. Allison should be able to live off her salary supporting a kid. Especially if there is no debt.

True, without a mortgage it would be quite easy.

[D Griff]

Yeah, like ~$70K in cash, quarter mill in 401K plus she has maybe $150-200K in 401K. What is the 401K sitch if I die, can she access prior to retirement? The good thing is we only owe like $200K on our house and it'll be paid off in 12 years due to 15 year mortgage, so all in all I feel in decent shape to be 35. Still though, she has like an upper five figure salary... not a lot of dough to support herself and a kid if the 401K stuff isn't accessible.

You'll want to name her as your beneficiary on your 401k policy. Even then, it'll still go through probate. From there, she could take the payout (minus taxes).

Yep, already the beneficiary. I just kind of assumed it would still be locked down with penalties if taken prior to retirement age. Haven't really thought much about this until a week ago honestly. I always kind of figure my 401K is a big joke and somehow the gov will seize it and/or the markets will crash and I'll get nothing anyway.

[Desertbreh]

I mean, a decent $500k policy covers the mortgage payoff plus college education savings for the kid. Allison should be able to live off her salary supporting a kid. Especially if there is no debt.

True, without a mortgage it would be quite easy.

Get the numbers and come back to us. TIL that DFD doesn't care too much about providing for their wife and crotchfruit because "I'm dead anyway and she'll just be fucking some other guy"

[J-Ho-Fo-Show69]

You'll want to name her as your beneficiary on your 401k policy. Even then, it'll still go through probate. From there, she could take the payout (minus taxes).

Yep, already the beneficiary. I just kind of assumed it would still be locked down with penalties if taken prior to retirement age. Haven't really thought much about this until a week ago honestly. I always kind of figure my 401K is a big joke and somehow the gov will seize it and/or the markets will crash and I'll get nothing anyway.

Ha! Well, I definitely wouldn't count on SS when we're retirement age (it might also be like 80 by the time we get there). It's not gonna be readily available, but she'll get it eventually. Kathryn and I are in the process of putting our Roth IRA's into trusts. It's kind of a pain in the ass to setup, but it sure is a hell of a lot better than dying and having the spouse just figure it out. We're eventually gonna move the houses into that same trust.

Depending on how tax law goes, you might be paying a higher tax rate for that 401k draw than your parents are. Roth kind of protects and insulates you from that since it's a post tax contribution. You're limited on how much you can contribute, just like a 401k.

We're gonna go through like 10 market crashes and corrections the rest of our lifetime, so set it aside and don't worry about it. I won't name names, but several of our friends are gonna be fucked in retirement.

[J-Ho-Fo-Show69]

True, without a mortgage it would be quite easy.

Get the numbers and come back to us. TIL that DFD doesn't care too much about providing for their wife and crotchfruit because "I'm dead anyway and she'll just be fucking some other guy"

Just make sure to leave Allison your login so we have one Griffin on the forum!

[ChrisoftheNorth]

True, without a mortgage it would be quite easy.

Get the numbers and come back to us. TIL that DFD doesn't care too much about providing for their wife and crotchfruit because "I'm dead anyway and she'll just be fucking some other guy"

Paying off debts seems adequate. I don't want my passing to be a lottery winning because I could end up wearing cement shoes at the bottom of East Grand Traverse Bay getting munched on by sturgeon.

[Desertbreh]

Get the numbers and come back to us. TIL that DFD doesn't care too much about providing for their wife and crotchfruit because "I'm dead anyway and she'll just be fucking some other guy"

Paying off debts seems adequate. I don't want my passing to be a lottery winning because I could end up wearing cement shoes at the bottom of East Grand Traverse Bay getting munched on by sturgeon.

A million bucks in not the lottery. 5 million bucks is the lottery. My point is that in Dan's condition, "lottery" and ".5 Lottery" are both going to be quite reasonable.

[Desertbreh]

Get the numbers and come back to us. TIL that DFD doesn't care too much about providing for their wife and crotchfruit because "I'm dead anyway and she'll just be fucking some other guy"

Just make sure to leave Allison your login so we have one Griffin on the forum!

[D Griff]

Yep, already the beneficiary. I just kind of assumed it would still be locked down with penalties if taken prior to retirement age. Haven't really thought much about this until a week ago honestly. I always kind of figure my 401K is a big joke and somehow the gov will seize it and/or the markets will crash and I'll get nothing anyway.

Ha! Well, I definitely wouldn't count on SS when we're retirement age (it might also be like 80 by the time we get there). It's not gonna be readily available, but she'll get it eventually. Kathryn and I are in the process of putting our Roth IRA's into trusts. It's kind of a pain in the ass to setup, but it sure is a hell of a lot better than dying and having the spouse just figure it out. We're eventually gonna move the houses into that same trust.

Depending on how tax law goes, you might be paying a higher tax rate for that 401k draw than your parents are. Roth kind of protects and insulates you from that since it's a post tax contribution. You're limited on how much you can contribute, just like a 401k.

We're gonna go through like 10 market crashes and corrections the rest of our lifetime, so set it aside and don't worry about it. I won't name names, but several of our friends are gonna be fucked in retirement.

Agreed on the last part sadly, I know that many people our age can't/aren't really saving much. We're going to need a lot of dough by the time we're old. Which is kind of my point here, leaving a kid and wife behind with like 300K bones, a $150K policy, and a mostly paid off house doesn't really seem like it'll cut it.

[Desertbreh]

Ha! Well, I definitely wouldn't count on SS when we're retirement age (it might also be like 80 by the time we get there). It's not gonna be readily available, but she'll get it eventually. Kathryn and I are in the process of putting our Roth IRA's into trusts. It's kind of a pain in the ass to setup, but it sure is a hell of a lot better than dying and having the spouse just figure it out. We're eventually gonna move the houses into that same trust.

Depending on how tax law goes, you might be paying a higher tax rate for that 401k draw than your parents are. Roth kind of protects and insulates you from that since it's a post tax contribution. You're limited on how much you can contribute, just like a 401k.

We're gonna go through like 10 market crashes and corrections the rest of our lifetime, so set it aside and don't worry about it. I won't name names, but several of our friends are gonna be fucked in retirement.

Agreed on the last part sadly, I know that many people our age can't/aren't really saving much. We're going to need a lot of dough by the time we're old. Which is kind of my point here, leaving a kid and wife behind with like 300K bones, a $150K policy, and a mostly paid off house doesn't really seem like it'll cut it.

You are correct sir.

[D Griff]

I mean, I hope I don't die and probably this is a waste of money. But that is far better than the alternative anyway.

[MrH42]

Someone just asked this on another forum I'm on. One guy (who I agree with most things finance with) summarized it better than I could:

As a general rule the only life insurance worth buying is term, and only to the extent someone (spouse, minor children) is dependent upon your earnings power. At 50, you probably do not need much if any term life insurance, and probably not for a very long term (ie maybe 10 years).

Life "insurance" that is actually an investment product, ie whole or universal, is almost always a bad deal.

Life insurance is not how you avoid being broke in old age. It's how you avoid young children or a dependent spouse being left in the cold if the breadwinner dies prematurely.

[coogles]

Someone just asked this on another forum I'm on. One guy (who I agree with most things finance with) summarized it better than I could:

As a general rule the only life insurance worth buying is term, and only to the extent someone (spouse, minor children) is dependent upon your earnings power. At 50, you probably do not need much if any term life insurance, and probably not for a very long term (ie maybe 10 years).

Life "insurance" that is actually an investment product, ie whole or universal, is almost always a bad deal.

Life insurance is not how you avoid being broke in old age. It's how you avoid young children or a dependent spouse being left in the cold if the breadwinner dies prematurely.

100% this. Buy term insurance for however long the rest of the family would otherwise be dependent on your income.

My case - my twins are 4 and my son is 6. My son has 17 years until he'll be out of a 4 year degree, 18 for the girls. Right now a 20 year term policy at roughly 10x my salary would be appropriate. Anything else isn't necessary. My retirement accounts will be more that enough to put me in the ground after that.

[D Griff]

Someone just asked this on another forum I'm on. One guy (who I agree with most things finance with) summarized it better than I could:

As a general rule the only life insurance worth buying is term, and only to the extent someone (spouse, minor children) is dependent upon your earnings power. At 50, you probably do not need much if any term life insurance, and probably not for a very long term (ie maybe 10 years).

Life "insurance" that is actually an investment product, ie whole or universal, is almost always a bad deal.

Life insurance is not how you avoid being broke in old age. It's how you avoid young children or a dependent spouse being left in the cold if the breadwinner dies prematurely.

This is what I always thought, I literally just found out about the other alts to term this week as I was looking into getting a policy.

Maybe 20 years is the sweet spot for now.