A Plan for Too Much Money

What would you do if you found out you had too much money? Yes, this is actually a thing. Some people are such good savers that they turn around at age 65 and see that they are going to die with a lot of assets leftover (obviously they weren’t spending enough time looking at their long-term financial plan over the years). They enjoy saving so much that they couldn’t imagine spending much more in retirement, at least it wouldn’t be fun for them. Even with a little extra travel they will still have a lot left over in the end.

I show these people how rock solid their financial plan is and give them a number for just how much money will be left when they die.

Then I give them three choices:

1. They can give their money to the government (taxes).
2. They can give their money to charity.
3. Or they can give money to their kids/grandkids.

Putting it that way helps people realize that they can choose or someone will choose for them. Now the fun begins. We talk about how they want to make a difference in people’s lives. How can they make the biggest impact (charitably or otherwise)? Do they want to see the difference they will make by gifting some during their lives? Are there concerns about gifting too much to their kids?

I have to say this is one of the most fun planning opportunities out there. I affirm that people have made great choices over the years. Then I help them continue to make great choices going forward. Let me know if you know anyone who needs help with this “problem.”

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.

About the Author: John O’Connor