Am I paranoid about saving?
oprah....@gmail.com
of savings. I am in my early 30's and here are the situations I remind
myself for reasons to save. Perhaps I am naive or paranoid so am
looking for your experiences in these situations.
1) Just defending yourself in a lawsuit that you are 'right' can cost
you 100k . If you lose, expect to be in debt 10X that much! I suppose
a counter argument is not to have too much assetts in your own name,
thus reducing the size of a judgement against you? Is that right?
2) Long-term health care in case of medical problems as you get
older . I am not sure about this one, does insurance cover this?
3) One 4-year college education at a top school for 2-kids will easily
set you back 250k
4) Emergency medical procedures are expensive, particularly if you
want the best surgeons to do them. Again does insurance cover this?
5) What if your kids develop autism or some other mental/physical
disability. Who is going to pay for their care? I am curious what do
families do in these cases, does government provide any help or
insurance again.
6) What if your parents or sibling runs into any one of the above
problems, is it your duty to bail them out?
Anything else to add/correct?
Rod Speed
> Most people are short-sighted and can not see the long-term benefits of savings.
And a few are obsessed about what worked in the past and which doesnt work today too.
> I am in my early 30's and here are the situations I remind
> myself for reasons to save. Perhaps I am naive or paranoid
> so am looking for your experiences in these situations.
> 1) Just defending yourself in a lawsuit that you are 'right' can
> cost you 100k . If you lose, expect to be in debt 10X that much!
Mindless neurotic paranoia. And there are obvious ways to protect yourself
against that trivial risk that work much better than saving if you are that neurotic.
> I suppose a counter argument is not to have too much assetts in
> your own name, thus reducing the size of a judgement against you?
Or just carry insurance so its a problem for your insurance company, not you.
> Is that right?
Yep.
> 2) Long-term health care in case of medical problems as you get
> older . I am not sure about this one, does insurance cover this?
And Medicare for most too.
Depends on what you mean tho, if you're worried about nursing home
costs, that can be worth making provision for. But simple 'saving' is a
lousy way to do that, much better to end up with decent assets that
you can liquidate to pay for that if its needed, or just decide that you
wont bother with an obscenity like a nursing home and will just pull
the plug instead if it ever comes to that.
> 3) One 4-year college education at a top
> school for 2-kids will easily set you back 250k
It aint the only way to fund that.
> 4) Emergency medical procedures are expensive, particularly if you
> want the best surgeons to do them. Again does insurance cover this?
Usually not on the 'best surgeons' question, but then few emergency
medical proceedures actually need 'the best surgeons' anyway.
> 5) What if your kids develop autism or some other mental/physical
> disability. Who is going to pay for their care?
They dont necessarily need paid for 'care'
> I am curious what do families do in these cases,
Work out how to handle that.
> does government provide any help
Varys with the country.
> or insurance again.
It is possible to insure against stuff like that.
> 6) What if your parents or sibling runs into any one of
> the above problems, is it your duty to bail them out?
Corse not.
> Anything else to add/correct?
In a modern economy it makes a lot more sense to end up with
decent assets than simple 'savings', essentially because 'savings'
produce quite derisory returns with interest rates so low.
m...@privacy.net
>> 3) One 4-year college education at a top
>> school for 2-kids will easily set you back 250k
>
>It aint the only way to fund that.
What other way you suggest?
ra...@vt.edu
> 1) Just defending yourself in a lawsuit that you are 'right' can cost
> you 100k . If you lose, expect to be in debt 10X that much! I suppose
> a counter argument is not to have too much assetts in your own name,
> thus reducing the size of a judgement against you? Is that right?
You should look into what is called an "umbrella policy." It covers
you against large judgements and is very cheap (because they are
really not very likely).
> 2) Long-term health care in case of medical problems as you get
> older . I am not sure about this one, does insurance cover this?
Depends on your insurance. You can buy specific insurance for
long term health care, and some employer provided health insurance
covers it, but you have to check with your specific employer's
insurer about what the limits are.
> 3) One 4-year college education at a top school for 2-kids will easily
> set you back 250k
If your kid gets into Harvard he'll be able to pay off some loans
when he gets done. Also, there are grants and other things which,
perversely enough, help pay for college if you don't have too
much in savings.
> 4) Emergency medical procedures are expensive, particularly if you
> want the best surgeons to do them. Again does insurance cover this?
Emergency medical procedures are generally done by the first
available qualified doctor. If you have time to pick an choose it's
not an emergency. Yes, insurance generally covers this, again within
limits.
> 5) What if your kids develop autism or some other mental/physical
> disability. Who is going to pay for their care? I am curious what do
> families do in these cases, does government provide any help or
> insurance again.
You suck it up and deal with it. Some employer provided health insurance
will pay for some things, but it varies and has limits.
> 6) What if your parents or sibling runs into any one of the above
> problems, is it your duty to bail them out?
Not if you haven't co-signed a promisory note or something. You
are responsible for yourself and your dependants and usually
your spouse. Your parents or siblings are not your legal responsibility.
> Anything else to add/correct?
I think you worry too much.
Bill Ranck
Blacksburg, Va.
Rod Speed
> Rod Speed <rod.sp...@gmail.com> wrote
Have the kids pay for it themselves, like you are doing.
Melissa
<oprah....@gmail.com> wrote in message
news:f041e4fe-88d6-4824...@i29g2000prf.googlegroups.com...
> Most people are short-sighted and can not see the long-term benefits
> of savings. I am in my early 30's and here are the situations I remind
> myself for reasons to save. Perhaps I am naive or paranoid so am
> looking for your experiences in these situations.
>
> set you back 250k
I have 3 sons in college. They are all paying their own way. There is no way
we could have funded even one of them. All are paying as they go, no school
loans or help from the Fed. One son & his wife have graduated already and
he has gone on for his Masters. One is still plugging away with his wife,
the other is at a State school working full time and going to school part
time. They have all worked full time since they married and don't expect
anyone to pay their way, nor do they want to borrow huge amounts of money.
They are 23, 26 and 28.
Mel
Lou
(snip)
> 6) What if your parents or sibling runs into any one of the above
> problems, is it your duty to bail them out?
Well, let's put the shoe on the other foot - what if you do run into any of
the problems you've listed. Would you expect your parents or siblings to
help (not bail) you out? Would you want them to? Would you be disappointed
or angry with them if they did not?
You don't have a duty, in the sense that there is no legally enforceable
obligation.
hal...@aol.com
nothinmg to split
now have assests and you got grief, wether its from divorce, medical
or any other bad event