longevity v credit card bankruptcies..

[scaredyclassic]

a major concern when retiring is outliving your $.

i wonder why more oldsters dont max out credit cards after, say, 80, to extend their monies when they exhaust or come closer to exhausting assets.

with good planning and credit, it wouldnt be unreasonable to run up 4 or 500k in credit card debt, and by ponzi scheming with cash advances, using that as living expenses for say 80 to 90+.

too much planning? ethics? seems like its risky for credit card cos. not to discriminate on basis of age when there are no assets as time is running out.

why not use credit cards as retirement funds when very old in a manner to maximize total debt?

i guess the plan would only work if you exhaust assets which could be scary. also i guess u dont get to leave any $ in a will…

[Coronita]

The problem with running up debt is that upon death is I’m wondering if it can count against your estate. If you were that uncaring, you could run up your debt right now, provided you provided a separate trust for your kids and sheltered what they inherit from you. But I suspect easier said than done.

Besides, I don’t think people “choose” to run up their debt if they had a choice between being in no debt or being in debt. So if you’re already thinking about this, you’re already probably one who is financially responsible who would never do this. It becomes a theoretical exercise into “how can i mess with the system without getting screwed over by it”….

I think there’s perhaps a different way of looking at this problem, that I personally have adopted. Aside from setting enough aside for my kid in a trust, I don’t plan on living very long… 🙂

It’s just not practically feasible given everything that will most likely go wrong.

It’s like having a german car. You know the longer you keep it, the bigger the headache it will be as just it’s guaranteed to steadily get worse and worse each year after it reaches a certain age….So after a certain age, you just put in oil and gas, and drive it until it goes into the ground, with minimum financial maintenance….

So figure maybe a good another 23 years on the odometer, that would take me to roughly 65…Just in time for that I can start withdrawing from 401k/IRA, and perfect time for my kid to inherit and get that capital gains step up cost basis when I’m dead. And by that age, my kid will be a young adult. Maybe married, maybe not. But she’ll definitely have her own house by then (of course I’ll be paying for it)…

This is such an awesome watch.. I recommend everyone gets one..
http://www.telegraph.co.uk/technology/news/10396053/Death-watch-counts-down-to-end-of-wearers-life.html

‘Death watch’ counts down to end of wearer’s life

Embrace death…Use your years wisely….Those 23 years come up pretty quick…

[scaredyclassic]

its definitely illegal to borrow with no intent to repay. but what if you intended to repay with the winnings of the $5 in lottery tix u bought each week?

its definitely repayable through your estate. but what if theres nothing there,

[scaredyclassic]

my brother sent me a death watch!

i just really have zero idea how long ill live.

i kind of figure my dad plus 5. 77

however, his brothers still going strong at 86.

my dad was verrry nervous, my uncle gives zero fucks.

im in the middle, more toward my dad.

[millennial]

[quote=scaredyclassic]a major concern when retiring is outliving your $.

i wonder why more oldsters dont max out credit cards after, say, 80, to extend their monies when they exhaust or come closer to exhausting assets.

with good planning and credit, it wouldnt be unreasonable to run up 4 or 500k in credit card debt, and by ponzi scheming with cash advances, using that as living expenses for say 80 to 90+.

too much planning? ethics? seems like its risky for credit card cos. not to discriminate on basis of age when there are no assets as time is running out….[/quote]

Yes you can probably do this and get away with it. From what I know, almost all CC debt is unsecured and not guaranteed. That’s why I would imagine many young people and people with little net worth wouldn’t mind using CC to start new businesses with the thought of BKing in case things don’t work out as expected. This being said, I think that CC know this and probably run a fairly large sample size to differentiate characteristics to minimize default risk or to analyze the risk/reward relationship. I mean if microlending sites like Lending Club can do it, I’m sure companies like Visa and MasterCard have it perfected. Therefore, it is very likely (aside from just a FICO) that they probably already adjusted the risk as appropriate before you even realize. For instance, if I was thinking about cash advancing all my cards to leave the country, they would probably notice my purchasing history (travel magazines, fodor guidebooks) and put a stop on that in a matter of seconds.

[spdrun]

For instance, if I was thinking about cash advancing all my cards to leave the country, they would probably notice my purchasing history (travel magazines, fodor guidebooks) and put a stop on that in a matter of seconds.

Merchant data sent to the CC company doesn’t generally show individual items purchased.

[millennial]

Not individual items but they do show categories as even run cash flow analysis. I have a rewards card which gives me extra bonuses at grocery store, vacation, movies etc. I also have my bank accounts too and it has a spending analyzer which can tell me how much extra income I made this month

[scaredyclassic]

just theoretical, although it seems like not a bad idea to preserve stellar credit with high limits into old,age just in case

[millennial]

Honestly I do the same thing too…just in case. Credit is one of those things that you don’t need until you actually need it. It’s nice to have just in case something happens. Again, similar to HELOCs back during the crisis. It’s likely that the banks will start freezing once they realize housing values start dropping

[spdrun]

Not individual items but they do show categories as even run cash flow analysis.

Categories are by merchant type.

i.e.
Bed & Bath = home goods, even if you buy a Snickers bar
Safeway = groceries, even if you buy light bulbs
Staples = office supplies, even if you buy a laptop for yourself

It’s not as smart of a system as you think. If you order from Amazon, they have no idea if you’re ordering travel mags or LSAT review books.

[millennial]

I figured as much regarding individual items. I’ll remember that next time I decide to pull all my money out and hide out in France. Wonder if Walmart is considered a grocery store. I can get most things there and get a higher % in cash back bonus

[scaredyclassic]

Pay cash before you go rogue

[Author]

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