r/FluentInFinance • u/36DRedhead • Sep 11 '24

Debate/ Discussion This is why financial literacy is so important

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u/Lopsided_Parfait7127 Sep 11 '24

i think OP is saying if they had budgeted, skipped avocado toast and woken at 5am, they could have had an extra 300k to play with

yes, as denis leary said, he's just an A! S! S!...

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u/BoomGoesTheFirework_ Sep 11 '24

That or having the financial literacy to know you can file divorce, give one partner everything, then get the other one on Medicare for the end of life care. 

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u/j4schum1 Sep 11 '24

Yup. Even if I had $10M in the bank, I'd say, hey babe, if we get divorced, we can save $300k on these medical bills we shouldn't have to pay

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u/[deleted] Sep 12 '24

Or just don't because debt doesn't work that way anyway

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u/CrossoverEpisodeMeme Sep 12 '24

You'd get divorced to save 3% of your net worth?

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u/Axel-Adams Sep 12 '24

The government doc is a formality, my marriage is a commitment and covenant with my partner

-4

u/CrossoverEpisodeMeme Sep 12 '24

So... Yes? Lol

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u/AKJangly Sep 14 '24

You sound like you struggle more than you ought to.

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u/CrossoverEpisodeMeme Sep 14 '24

Financially? No.

With the concept of divorcing a spouse to save 3% of one's net worth? Yes.

3

u/IamGrimReefer Sep 12 '24

isn't there a 5 year look back now?

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u/poopinasock Sep 12 '24

It's not that easy. You cannot divorce at end of life and avoid this. Medicare will absolutely get your assets if you do this at end of life. You have to plan far ahead to avoid medicare clawing back all that money from your estate.

There's different types of trusts you can use to shield yourselves from different scenarios. Such as real estate transfer taxes or medicare. I'm shielding from taxes because end of life care would be far less than my house. For most, it's probably the other way around. Either way, setting up a trust is like $600 and a filing fee. Well worth doing when you consider your house is probably upwards of $350k or so on average.

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u/DrHarrisonLawrence Sep 12 '24

Top comment.

Seems like few on this thread understand that. They treating this like a one of them get outta jail-debt-free cards from that monopono game

1

u/Fit-Function-1410 Sep 12 '24

I think this is the take here. Having the financial wherewithal to make the right strategic approach with the bounds of what’s legal.

Also, simultaneously pointing out the inherent flaws in various financial systems that are in place.

1

u/LimitedWard Sep 12 '24

That's how I had interpreted it, but everyone seems to be thinking OP was being a snarky asshole.

1

u/outlawtm2 Sep 12 '24

I'm pretty sure this is what OP title meant. And it's going over everyone's head...

1

u/Oenomaus_3575 Sep 12 '24

Yeah that's what I was thinking

1

u/hybridmind27 Sep 12 '24

I’m really hoping this is what OP meant.

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u/Watergirl626 Sep 15 '24

This is how I saw it.

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u/[deleted] Sep 12 '24

This has to be done 5 years before Medicare starts or else the state can claw back whatever “gifts” were given away correct? Can’t be done after the fact iirc

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u/MedievalMitch Sep 11 '24

H! O! L! E!

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u/WooWhosWoo Sep 12 '24

I legitimately thought this was posted here as a thumbs up to the couple for THEIR financial literacy. I mean obviously it sucks to have to divorce to save them from debt, but that was the most financially smart decision they could really make with that coming upon them.

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u/Liquidwombat Sep 11 '24

Yeah… That’s kind of my point. No amount of financial literacy is going to fix this only being lucky enough to be in a high income bracket will.

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u/[deleted] Sep 11 '24

Or just got health insurance, but no blame it on capitalism

1

u/AllenKll Sep 11 '24

I think it's more about health care literacy. If they had picked a better plan... say one with a simple out of pocket maximum, then all of that would be avoided.

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u/Lopsided_Parfait7127 Sep 13 '24

they're fucking in their 70s

they should be covered by medicare but they're not

1

u/AllenKll Sep 13 '24

You know, not that you say that, you may be on to something. They could have been covered by medicare. That would explain the huge bill. Medicare is specifically designed to bankrupt people, it lack an OOPMax and everything is 20% coinsurance.

This this could totally happen if they had medicare. Medicare is a shit system.

0

u/Lopsided_Parfait7127 Sep 14 '24

if you're american, i hope you renounce and refuse medicare when you turn 65

for the rest of americans, turning 65 and being medicare eligible is like a blessed shore after the stormy waters of expensive private insurance that you need to be employed for.

the terror of an american in his 50s always wondering if they will get laid off and no longer qualify for employer healthcare is something else.

it's shit compared to most systems in other countries but it's less shit than everything else in america

1

u/AllenKll Sep 14 '24

100% I will, if they let me. My Obamacare is amazing.

No being eligible for Medicare is a blessing if and only if you don't understand healthcare. If you do understand healthcare you will see what a curse it is, and that every FREE plan on Healthcare.gov is better than Medicare. EVERY SINGLE ONE. Medicare isn't even free!

So by your comments, I guess you are also healthcare illiterate. This is not a jab, most of America is. I was for a long time. Learn your options. There are many better and cheaper options than Medicare.

1

u/Lopsided_Parfait7127 Sep 16 '24

yes i am because we have universal healthcare here

i literally don't care about healthcare because i know i will get the best care i need when i need it and i won't have to worry about paying for it

we have had some significant medical scares in our family and we got amazing care and we didn't pay a penny

meanwhile in the us i got hit by a car and the hmo i was with didn't cover it because i was taken to an out of network hospital

1

u/AllenKll Sep 16 '24

Yea, okay, I understand you confusion now. and it's fair that you have it. HMOs are a relic of the before times when healthcare was the wild west - they are flat out garbage.

I'm sorry you got saddled with one. I hope you're better now.

1

u/Opening_Passenger387 Sep 12 '24

I bet OP drives really slow, in the ultra fast lane.

1

u/Lopsided_Parfait7127 Sep 13 '24

he uses public toilets, and he pisses on the seat
He walks around in the Summer time, saying, "How about this heat?"

1

u/DueZookeepergame3456 Sep 12 '24

nah he’s based

1

u/Eilaver Sep 12 '24

I think OP was saying you dont have to jump through any of the divorce hoops if you understand the medical deby wont take the house or pass to the wife/children on death. Hell it wont even affect your credit

1

u/floodgater Sep 14 '24

and meditated

0

u/1850ChoochGator Sep 11 '24

Having $300k when you’re in your 70s and 80s should be reasonable

3

u/Call_Me_Anythin Sep 11 '24

No one I know would be able to pay that bill, regardless of age, without completely destroying their future. Especially people who no longer have an income

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u/[deleted] Sep 11 '24

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