IPS question on bequest

Quick question, should a bequest after death be considered a stage in time horizon?

No. Death and any resulting bequest would occur within a relatively short time frame so they should be thought of as one event. Plus, you can’t have one without the other.

Hey dickey - good question. I believe it depends on who the bequest is to and if the person who’s dying wants to dictate how the funds are invested. So if say, the bequest is to a grandchild or a disabled family member or anyone who cannot effectively manage their own money or that has their own advisor, and the giver wants to mandate the funds be invested a certain way (s&p500 index fund or whatever), then it is another stage. Anything else I don’t think you add a stage.

Would be good to know if anyone can confirm…

That makes sense. Thanks.

I was thinking about something like this.

Say Joe Smith, age 40, plans to retire at 65. He would like to have his portfolio of $10 Mil cover his living expenses. He has no children. Upon his death, he would like to give the remainder of his wealth to charity.

Would this be a long-term 2 stage time horizon

Stage 1: from now until retirement at 65

Stage 2: Retirement until death

or 3-stage

Stage 1: from now until retirement at 65

Stage 2: Retirement until death

Stage 3: bequest to charity.

I guess this would be a 2-stage time horizon then. Seems to make more sense.

Yea I’d say 2 stage