What does “financially stable” mean to you?

[Twilghtsprkle]

Sadly where I live we are seeing many family businesses sold or more likely just shut down because the next generation doesn’t want to work that hard to sustain it. One of our favorite restaurants shut down a few years after the owner died. The children cut the menu drastically. They made all of their children servers and they had no work ethic at all.

Why should someone work hard to sustain something they have no passion about? And running a restaurant sucks and does not pay well for the most part. Truthfully it’s better to get a regular 9-5 that pays decent than rely on the whims of customers.

True, not everyone sets up their will to pass on wealth, and even when they do, things can get messy. But the real value of generational wealth lies in building a financial foundation that spans generations. When it works, it does more than provide money—it offers stability and opportunities, giving the next generation a significant advantage in life. Generational wealth is the best kind of reliable stable wealth.

I will most likely get decent amount from my mother whenever she passes. But we don’t need it, my husband has a good job. I definitely would’ve prefer her to have spent that money on stuff when I was younger and we did without things. She definitely had OCD in regards to saving for retirement. When she started working she pretty much put her entire paycheck into a 401K and we lived off only dad’s paycheck. Now she’s retired and between SS and her very good pension, she doesn’t even have to touch that 401k money. Now she puts money into accounts for my kids each year and gives money to my sister and I each year.

 

[Dakota731]

Why should someone work hard to sustain something they have no passion about? And running a restaurant sucks and does not pay well for the most part. Truthfully it’s better to get a regular 9-5 that pays decent than rely on the whims of customers.


I will most likely get decent amount from my mother whenever she passes. But we don’t need it, my husband has a good job. I definitely would’ve prefer her to have spent that money on stuff when I was younger and we did without things. She definitely had OCD in regards to saving for retirement. When she started working she pretty much put her entire paycheck into a 401K and we lived off only dad’s paycheck. Now she’s retired and between SS and her very good pension, she doesn’t even have to touch that 401k money. Now she puts money into accounts for my kids each year and gives money to my sister and I each year.

You are very blessed by your mother’s fiscal responsibility. I have several friends who are supporting their parents during their old age because they didn’t plan for the future.

 

[Dakota731]

Paying cheap for labor.

Portugal's minimum wage is 750 euros/month.
Spain is 1050 euros/month.

160 hours of work/month = 4.70/hr for Portugal and 6.56/hr for Spain.

That’s correct. Fast food restaurants in our area have to pay $18-20 an hour, and even then they never get enough help to be fully staffed. So of course they have to raise prices. They can’t continue to be in business if they are losing money.

 

[starry_solo]

That’s correct. Fast food restaurants in our area have to pay $18-20 an hour, and even then they never get enough help to be fully staffed. So of course they have to raise prices. They can’t continue to be in business if they are losing money.

So do the ones in our area. Our state also requires regular restaurants to pay minimum wage, not the ridiculous $2/hr for the server to make up the rest in tips

 

[barkley]

You are very blessed by your mother’s fiscal responsibility. I have several friends who are supporting their parents during their old age because they didn’t plan for the future.

i know of some whose children don't realize this will likely become a reality in the next decade. me knowing roughly what the parent(s) income was over the years, what their spending habits were and how that realisticly plays out in retirement. i think about these households and how financialy it will impact them esp. at a point where they will still be raising their minor children (and i imagine planning to help their then college age ones). some have just in the last handful of years managed to become first time homeowners who i suspect plan in part for their OWN later years based on their incomes being sufficient to meet only their nuclear household's needs/save for THEIR futures. the grandparents are not only impacting their children they are likely impacting their grandkids decades down the line when they may be in the same situation

 

[gmi3804]

Our family's manufacturing business was started in 1950. We're at a crossroads now, because imports are much cheaper, even including shipping costs, than manufacturing. What's more, the four acres of land on which our plant is situated, being just outside of downtown Chicago, is worth way more in the commercial/retail/mixed use development market than many times our ANNUAL profits (even after paying our substantial salaries), so the buildings and property have effectively become functionally obsolete to manufacturing. So it's not always a question of not wanting to "work hard." And let's face it, the family's jobs don't really involve much, if any, "hard work" (unless you count walking popular DVC reservations at the 11-month window hard work.) There are just forces here in 2024 that weren't at play when the business was formed in 1950, things that no amount of work or desire can reasonably overcome.

 

[tvguy]

Agree in this day and age people can no longer rely on inheritance. My grandparents had a good amount of money that they left to my parents. My father is not that much older than my husband. Not only could he outlive us but if he requires long term care he could lose everything. It is not a good idea to plan on an inheritance

Too bad he doesn't have Long Term Care Insurance. Sounds like he can afford it. To each his own I guess. Another issue is sometimes there can be issues in settling an estate or an executor is taking their time. The size of the estate can shrink as the estate has to pay ongoing bills We are still waiting for my wife's step mother's estate to be settled two years after she passed. Nothing complicated, the executor is just taking her rime while having to pay property taxes and insurance on a house.
A friend is executor of an estate that wasn't properly set up. Took two years to get court approval to sell a car, the cost of insurance and upkeep ended up costing the estate more than the car was worth.

 

[barkley]

A friend is executor of an estate that wasn't properly set up. Took two years to get court approval to sell a car, the cost of insurance and upkeep ended up costing the estate more than the car was worth.

one of the biggest pains in dealing with mil's estate was the car. california makes you wait something like 40 days (absent probate) BUT you can't tranfer it unless it's currently insured BUT no insurance company will insure a dead owner so we had to store it and just put off telling her insurance company that she had passed until a couple of months after the fact. everything with her will was set up fine, it was just the dmv's process that made it difficult.

after dealing with the administration of 2 estates, both set up properly (one a trust/one not), i would not wish it on my worst enemy.

 

[tvguy]

one of the biggest pains in dealing with mil's estate was the car. california makes you wait something like 40 days (absent probate) BUT you can't tranfer it unless it's currently insured BUT no insurance company will insure a dead owner so we had to store it and just put off telling her insurance company that she had passed until a couple of months after the fact. everything with her will was set up fine, it was just the dmv's process that made it difficult.

after dealing with the administration of 2 estates, both set up properly (one a trust/one not), i would not wish it on my worst enemy.

I'm in California and had no issues selling my mom's car. Sold it 4 days after she passed. But she had everything set up properly. I was co-owner, had been for 38 years, from the time I turned 18. Everything but the house was set up that way. House was in a trust to preserve her Prop 13 property tax level if I elected to keep the house. I did check with the insurance company because she stopped driving and moved into a care home the last year of her life, and the insurance company said there was no issue with me operating the car to conduct her business.
Texas is nuts with cars. My wife's father died, and her step mother's car was in his name only. In Texas, a blood relative has rights to vehicles over a step parent. My wife had to sign a notarized form releasing interest in the car before her step mother could register it in her name. I guess cars can only be in one name in Texas, because her step mom was the only one on her father's truck title, and she had no problems selling it.

 

[barkley]

I'm in California and had no issues selling my mom's car. Sold it 4 days after she passed. But she had everything set up properly. I was co-owner, had been for 38 years, from the time I turned 18. Everything but the house was set up that way. House was in a trust to preserve her Prop 13 property tax level if I elected to keep the house. I did check with the insurance company because she stopped driving and moved into a care home the last year of her life, and the insurance company said there was no issue with me operating the car to conduct her business.
Texas is nuts with cars. My wife's father died, and her step mother's car was in his name only. In Texas, a blood relative has rights to vehicles over a step parent. My wife had to sign a notarized form releasing interest in the car before her step mother could register it in her name. I guess cars can only be in one name in Texas, because her step mom was the only one on her father's truck title, and she had no problems selling it.

that is the ideal way with a car (at least in california) but what can be a simple way to pre-arrange for this situation if there's a sole heir can be complicated tremendously when there are-

multiple heirs
no heirs that live in state (gets complex being listed as a co-owner on a vehicle in a state separate from your residency).

 

[dpswift]

Our family's manufacturing business was started in 1950. We're at a crossroads now, because imports are much cheaper, even including shipping costs, than manufacturing. What's more, the four acres of land on which our plant is situated, being just outside of downtown Chicago, is worth way more in the commercial/retail/mixed use development market than many times our ANNUAL profits (even after paying our substantial salaries), so the buildings and property have effectively become functionally obsolete to manufacturing. So it's not always a question of not wanting to "work hard." And let's face it, the family's jobs don't really involve much, if any, "hard work" (unless you count walking popular DVC reservations at the 11-month window hard work.) There are just forces here in 2024 that weren't at play when the business was formed in 1950, things that no amount of work or desire can reasonably overcome.

That is similar to what happened with my families business. My great grandfather started it in the early 1900s. He did very well and both his sons worked there as well. When my father asked to join the business in the late 1960s my grandfather turned him down because he could see the business dropping off.

 

[jo-jo]

Now she’s retired and between SS and her very good pension, she doesn’t even have to touch that 401k money. Now she puts money into accounts for my kids each year and gives money to my sister and I each year.

Your mom is smart with giving money now. I took care of my sisters will. She had no spouse or children. Shock to me what the inheritance tax was. I had no idea. And she had very little. Not like an extra tax over 3 million.

 

[Dive Bar Casanova]

Live below your means, plan and shoot for 15% in the savings acct., get the house paid off, money management.

 

[obsesseddisneyfan]

I remember the day I realized that I was financially stable. I could buy fruit (Bing Cherrys) at the grocery store and not weigh them.

 

[MrsPete]

Yes, I think we're finally running out of road with respect to consumer spending.

Totally agree. I think about it every time I go to the grocery store -- seems like I can't get out without spending $80-100. I used to spend $50ish, and that's back when my kids were all at home!
When I'm paying, I always think about how people with low-paying jobs, debts and/or small children. For so many people, just paying more isn't an option.

Another thing I notice now that I am a Senior Citizen, Senior Value menus are disappearing in restaurants and Senior Admissions to show and fairs are going away..

Just as I'm closing in on those discounts!

I joined the Sip club at Panera when I got a deal on it. It's actually saved me a lot on drinks. I'm in my car all day seeing clients and I stop at one pretty frequently. I love the new menu too.

I don't care for many of their drinks, but I can see how it'd benefit someone who drives around all day. Of course, what they want is for you to buy something else while you're in for a drink.

I don't think that being financially stable means no credit card debt ...

Totally no. You can never get ahead if you're still paying for yesterday's consumer items.

Actually they have tried to become more budget friendly. They have the duets for $7.99 and unlimited self serve drinks for $14.99 a month. Agree when you get a bowl of soup for $10 it definitely feels expensive

Yes, I love their Value Duets. I don't mind the reduced choices and "no substitutions" requirement AT ALL. It's a medium-to-large meal for a decent price!

Reading a lot about people leaving their family out of their wills, so not sure that is a sure thing.

And more likely, the deceased may live longer /spend more -- especially on medical needs -- than expected, leaving little or nothing for the people in that will. Anything you've been promised in a will is speculation.

Now she puts money into accounts for my kids each year and gives money to my sister and I each year.

When I'm older, I fully intend to hand over money to my kids each month /let them put it away.

That’s correct. Fast food restaurants in our area have to pay $18-20 an hour, and even then they never get enough help to be fully staffed. So of course they have to raise prices. They can’t continue to be in business if they are losing money.

One of my siblings works in fast food, and they are definitely having trouble keeping staffed. I hear they have to pay their employees double-time for the last hour of the day -- otherwise, the kids'll leave because they don't want to do the difficult, end-of-the-day cleaning.

At the same time, if they're paying $18-20/hour, they'll have to charge so much for the food that no one's going to buy it.

 

[tvguy]

And more likely, the deceased may live longer /spend more -- especially on medical needs -- than expected, leaving little or nothing for the people in that will. Anything you've been promised in a will is speculation.

Medicare Part A annual deductible is $1,632, and Part B is $240. There aren't a lot of circumstances where your annual out of pocket medical should be more than that. I had an ablation last year and the total bills came to almost $225,000 with the Doctors and hospital stay. My out of pocket was zero with old fashioned Medicare and a Medigap policy. Of course, Medicare paid a much lower negotiated price, and my Medigap picked up the $1,200 balance.
The last 13 months of my mom's life with a Medicare Advantage plan her total out of pocket medical was $500. She needed an ambulance four times, two times the ambulance was owned by the Fire Department and they billed her $250 each. Two times it was a private for profit ambulance service and they accepted what Medicare paid as full payment. That did gall me that the Fire Department that she had paid property taxes to for 63 YEARS did not accept Medicare's payment as full payment when the private for profit ambulance company did.

 

[Dive Bar Casanova]

I had dual premium Healthcare. My business coverage plus I was on the wife's health plan. It mean't nothing.
All that matters out here is PPO not HMO in order to get the newest procedures and medicines. Might be different elsewhere, but not out here.

My Medicare with a PPO supplement eclipses it all. They wheel my gurney to the front of the ER cue and I'm next to get the knife when the nurse with the clipboard walks by and learns I'm Medicare.

Medicare ain't free but it's really good. PPO supplement is essential.
Colon cancer:
HMO Health insurance= Radiation with gruesome side effects and colostomy bag for life.
PPO with Medicare = Medicine and a cold beer.

 

[barkley]

When I'm paying, I always think about how people with low-paying jobs, debts and/or small children. For so many people, just paying more isn't an option.

me too on these thoughts. it kills me to see the prices on what have traditionaly been the cheapest items that many have relied on in the past to stretch their dollars. $4.79 for a 10 count of flour tortillas they were FLYING off the shelves 2 weeks ago when one of the local stores had a cinco de mayo loss leader sale at $1.49 a pack. $2.99 is the going rate for a single can of refried beans

i've lost count of the number of times i've been behind a fellow senior citizen at the store and witnessed them have to pick and choose items to have the cashier back out b/c they can't cover the cost. just basic staples, nothing fancy. i've gotten a few to accept letting me cover the shortfall-i've talked to cashiers after the fact and many have taken to paying out of their own pocket when they see a senior choosing between putting back an otc med or a carton of milk and a dozen eggs.

Medicare Part A annual deductible is $1,632, and Part B is $240. There aren't a lot of circumstances where your annual out of pocket medical should be more than that. I had an ablation last year and the total bills came to almost $225,000 with the Doctors and hospital stay. My out of pocket was zero with old fashioned Medicare and a Medigap policy. Of course, Medicare paid a much lower negotiated price, and my Medigap picked up the $1,200 balance.
The last 13 months of my mom's life with a Medicare Advantage plan her total out of pocket medical was $500. She needed an ambulance four times, two times the ambulance was owned by the Fire Department and they billed her $250 each. Two times it was a private for profit ambulance service and they accepted what Medicare paid as full payment. That did gall me that the Fire Department that she had paid property taxes to for 63 YEARS did not accept Medicare's payment as full payment when the private for profit ambulance company did.

the challenge many medicare recipients are experiencing is the staggering number of medicare accepting doctors retiring/leaving their practices and going unreplaced. we've seen a dozen or more general practitioners leave the local large provider groups in the last year. dh has lost 2 in the same specialty in a year and a half (a specialty that already has you schedule a year out for your next appointment). another specialty has lost 4. then when your medicare plan gets into a stand-off with a large provider you can be left stranded-the top story on many of local newscasts recently has been the 10,000 premera (including medicare) patients who are being cutoff june 1st from our region's largest outpatient diagnosic and treatment group. they will have to find primary providers and specialists.......if they can (most medicare providers have loooong waitlists).

having the insurance is great but you need a provider of the services your insurance pays for.

 

[dpswift]

me too on these thoughts. it kills me to see the prices on what have traditionaly been the cheapest items that many have relied on in the past to stretch their dollars. $4.79 for a 10 count of flour tortillas they were FLYING off the shelves 2 weeks ago when one of the local stores had a cinco de mayo loss leader sale at $1.49 a pack. $2.99 is the going rate for a single can of refried beans

i've lost count of the number of times i've been behind a fellow senior citizen at the store and witnessed them have to pick and choose items to have the cashier back out b/c they can't cover the cost. just basic staples, nothing fancy. i've gotten a few to accept letting me cover the shortfall-i've talked to cashiers after the fact and many have taken to paying out of their own pocket when they see a senior choosing between putting back an otc med or a carton of milk and a dozen eggs.

Food costs are hurting the young and old around here it is very sad. One of my coworkers told me all the meat that she could afford on a daily basis was the5 for $20 deal at the local store. So her family of 4 had less than a pound of meat to share each day.




the challenge many medicare recipients are experiencing is the staggering number of medicare accepting doctors retiring/leaving their practices and going unreplaced. we've seen a dozen or more general practitioners leave the local large provider groups in the last year. dh has lost 2 in the same specialty in a year and a half (a specialty that already has you schedule a year out for your next appointment). another specialty has lost 4. then when your medicare plan gets into a stand-off with a large provider you can be left stranded-the top story on many of local newscasts recently has been the 10,000 premera (including medicare) patients who are being cutoff june 1st from our region's largest outpatient diagnosic and treatment group. they will have to find primary providers and specialists.......if they can (most medicare providers have loooong waitlists).

having the insurance is great but you need a provider of the services your insurance pays for.

Here it is not just Medicaid recipients having a hard time finding doctors it is everyone

 

[Dive Bar Casanova]

$8 med jar of Best Foods / Hellmanns Mayo at Kroger. EIGHT BUCKS!!!!
I remember my dad quit smoking when cigarettes hit 25 cents a pack, sold his '57 T Bird V8 when gasoline hit 30 cents a gallon.
Balked when a draft beer in Tombstone was $1.