Dick/Larry,
I'm trying to learn the effect a $1.2M charitable bequest would have on consumption. I entered a $600,000 bequest for each spouse, both spouses die the same year. I entered minus 99 as "desired % change in survivor std of living" on the estate page to avoid insuring the bequest.
I get the same consumption/std of living number with and without the bequest. What could I be doing wrong?
Thanks
Charlie
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Charlie,
Larry and I are both on vacation right now so it may be a little while until we can get to answer this in detail. Expect to hear from Larry first, but it will be a week or so (I'm not 100% sure of his travel schedule).
Best,
Dick Munroe
I work part time as a CFP and I've been trying to get my employer interested in ESP. First I need to model a scenario similiar to one in use on the firms software. Of course ESP spends everything so I'm using a bequest to equal the end value (safety margin) of the firms software.
Charlie
Charlie, There may be nothing wrong. Suppose you have $5 million and you tell the program you don't want survivors to spend anything, but you do want to make a $600k bequest if either you or your wife die. The program says, "Fine. If you die, there is $5 million to cover your bequest -- more than enough." I don't know your inputs, but I imagine this is what is going on. If not, call me at 617 834-2148. thanks, Larry
Dick/Larry,
I'm trying to learn the effect a $1.2M charitable bequest would have on consumption. I entered a $600,000 bequest for each spouse, both spouses die the same year. I entered minus 99 as "desired % change in survivor std of living" on the estate page to avoid insuring the bequest.
I get the same consumption/std of living number with and without the bequest. What could I be doing wrong?
Thanks
Charlie