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     A fairly good friend of mine is to recieve $100,000 in a bequest from a elderly gentleman he knows with no family whom he (my friend) has looked after in a myriad of ways for the past 10 years. The bulk of the man's estate is to go to a wide variety of charities. My friend has seen the will and it simply says $100,000. It doesn't stipulate cash or whatever. The elderly man is 93 and in failing health, so my friend and I have discussed his options at the time of the gentleman's death. This person has a substantial investment portfolio which actually comprises the bulk of his estate. To pay my friend the $100,000 in cash, the executor will have to sell off some of the portfolio. I suggested to my friend that he take a small amount (say $25K) in cash and the reminder in stock from the portfolio as when he market rebounds he will end up with far more than the $100k bequest at no cost to the estate. My friend thinks I'm crazy and that he should take the $100k in cash. He also doesn't believe the executor can pay him in stocks. I say he can pay him in anything of value contained in the estate so long as my friend is in agreement with the executor.

Opinions please ?

B B

BB - it really comes down to what those stock are and if you have a view on their potential value. my personal view is that if you dont have a view on them, dont own them just because you may think that they could go up - they could also go down!  I would also say that the Dems will raise our capital gains, so if there are any capital gains by selling stock, you are better off doing that now than later. if taxes are not an issue then its a matter of what alternative investments you can make with the $100k.  My view is get it out of US denomiated assets because i think the dollar will be weak for the forseable future given our debt problem and the way we are printing money but that is just my opinion.

best

Free

[BigR55]

     A fairly good friend of mine is to receive $100,000 in a bequest from a elderly gentleman he knows with no family whom he (my friend) has looked after in a myriad of ways for the past 10 years. The bulk of the man's estate is to go to a wide variety of charities. My friend has seen the will and it simply says $100,000. It doesn't stipulate cash or whatever. The elderly man is 93 and in failing health, so my friend and I have discussed his options at the time of the gentleman's death. This person has a substantial investment portfolio which actually comprises the bulk of his estate. To pay my friend the $100,000 in cash, the executor will have to sell off some of the portfolio. I suggested to my friend that he take a small amount (say $25K) in cash and the reminder in stock from the portfolio as when he market rebounds he will end up with far more than the $100k bequest at no cost to the estate. My friend thinks I'm crazy and that he should take the $100k in cash. He also doesn't believe the executor can pay him in stocks. I say he can pay him in anything of value contained in the estate so long as my friend is in agreement with the executor.

Opinions please ?

B B

Have him "Gift" up to 12,000 in cash while he is still alive. If his friend survives past the first of the year, gift another 12,000. Then, have his broker present a cost basis analysis of the stock available to bequest. Even after today's 678 drop, he most likely will have stocks that have appreciated above his cost. Have your accountant look at the situation and set up the transaction to reduce the tax implications.

[FLSTFI Dave]

I never understood that you could Opt out of Social Security...how?

Most people can not opt out of SS.

A few groups can opt out, like teachers and ministers.

I would love to opt out but I can not.

I know about teachers as I was an Adjunt Proffesor and was able to opt out on that income if I put the same amount is a CRF account.

[FLSTFI Dave]

You should have opt out of SS when you started.  But if you opt out, you can't get back in (it soppose to be the down side but it's not).

Most people by law can not opt out.

Remember, Bush wanted to get it passed where we could opt out if you inveted in an idividual retirement account.

I would love to opt out, even if I could not get a penny back

[FLSTFI Dave]

The fallacy is that this is an investment of some sort.  It is not, it is a direct transfer of assets from one group to a different group.  There is no guarantee that anyone will get the money they have "invested" in the system.  It is what it is, and anyone who relies on SS for their retirement is a fool.

Jerry

I sure ageee.

It is a waist of my money.

[iski]

SS would cease to exist in present form  if we who choose to could opt out.  That is why it is a FORCED program under totalitarian type rules that prohibit freedom of choice in the matter.  Like many of the tenets of socialism, actually.

[miker]

How much do I loose today?  15-20K?  again...

[SPIDERMAN]

How much do I loose today?  15-20K?  again...

Down $400k since the skid started. Am so frustrated I want to find somebody to kick the crap out of.

B B

[miker]

Down $400k since the skid started. Am so frustrated I want to find somebody to kick the crap out of.

B B

Me too....After January with the swearin of the next potus, things may settleout...4-8 year recovery now, I hope.
Bad time to drop 40k on a bike.....That buys a lot groceries...or bullets. 

[icybay]

BB  start here

[SPIDERMAN]

BB  start here

No can do Tim

Because Frank is a , that'd make it a hate crime vice simple assault

B B

[miker]

Barney the entrenched queen.




Did the storm over there affect you Tim?

[icybay]

Only the storm I am watching on CNBC right now

[miker]

another 20k in the chitter, no knucklehead for me in 09...

[DCFIREMANN]

Just looked a while ago and turned it off. Over 300 points down and not letting up. Financial markets overseas took an a$$ whipping last night. Some European markets closed because of the free fall!!!!

I just hope this ends soon.

Be Safe

THE DAWG