Friday, July 10, 2009
Palin's Resignation
It's no mystery to me why Palin resigned. She was right to resign. It was a no brainer. Had she not resigned, she would be doing irreparable financial harm to her family.
Here's why.
Sarah Palin and her husband have five children and one grandchild. All of them, with the possible exception of Track, who's in the Army, are going to need a lot of help. Bristol's a teenage mom who's baby-daddy is useless. Levi's parents aren't going to be much help. The burden of bringing up that child is going to fall mostly on the Palin family, and Bristol herself has exremely limited means. Piper is six or seven. Just starting school. her expensive teenage years ahead pf her, and she'll need a college fund. Bristol may need some help finishing her education.
Retirement? Palin will have a modest pension, but she hasn't spent THAT long as a State of Alaska employee. Todd? He's done ok, but with five children? He's gonna have to scramble to fund his own retirement on top of everything else.
But get this the minute they found out that Trig had Down Syndrome, the financial planning picture changes. Why? Because the Palins insurance needs changed radically.
Trig will likely never be able to work or live independently, and will be dependent upon assistance his whole life. The Palins are confronted with a number of simultaneous financial challenges:
1.) Meet the college/education needs of at least three children and one grandchild. (Track will have the GI Bill, and possibly an ROTC scholarship if he wants it, so he's less of a worry, though still may need some help when he gets out of the Army.
2.) Help Bristol with her own day-to-day expenses and those of her baby.
3.) Provide for the day-to-day needs of Trig, who's going to have some pretty serious special needs and will require more and more time and attention as he gets older and becomes self-propelled.
3.) Provide enough life insurance protection to provide for her family's substantial needs if she got on the wrong airplane or got shot by a rabid libtard.
And here's the rub: Many middle class families opt for cheap term insurance, on the theory that their need for life insurance goes down substantially when the kids are out of school and no longer dependent.
That is not the case here. In the Palin's case, Trig's need for life insurance protection doesn't end when he gets a college diploma and moves out on his own. His need is permanent. The Palins must, on their limited incomes, provide for everything above, AND provide enough money for an endowment to support Trig Palin... probably for decades.
Financial planning for children with special needs is a little different than planning for most families. And it takes quite a bit more cash flow to provide for them. Cash flow the Palin's don't have on a Governor's salary and Todd's pay.
If Palin didn't quit, they could get through the next couple of years in decent shape. But then their options would deteriorate sharply if Palin's star faded. At 48/49 years old, it would be extremely difficult to recover.
The Palins very likely need a substantial amount of permanent life insurance. Not term. Set aside for Trig. If they wanted to be equitable to all their children, they would need a lot more permanent insurance, as opposed to term.
It's a lot more expensive, in terms of cash flow and monthly required premium, to buy that insurance in her late 40s than it would have been if she were in her 20s or 30s. And there's not as much time to build it up, either. Had Palin tried to stick it out on the Governor's salary, it would have been almost impossible.
But quitting, and getting a book out there, and hitting the lecture/fundraiser circuit in the next few years, would allow her to do all that. She can take care of her family, provide a legacy for her other children, spend some time with the kids, create something that creates residual income (book royalties), and STILL have a shot at running for president or senator.
Most importantly, if she doesn't provide for Trig, her critics sure as hell won't. No one else can do it but her.
Maybe she didn't explain it too well. And maybe it's none of our business anyway. But in my view, she did the right thing.
Best of luck, Governor Palin and family.
Splash, out
Jason
Here's why.
Sarah Palin and her husband have five children and one grandchild. All of them, with the possible exception of Track, who's in the Army, are going to need a lot of help. Bristol's a teenage mom who's baby-daddy is useless. Levi's parents aren't going to be much help. The burden of bringing up that child is going to fall mostly on the Palin family, and Bristol herself has exremely limited means. Piper is six or seven. Just starting school. her expensive teenage years ahead pf her, and she'll need a college fund. Bristol may need some help finishing her education.
Retirement? Palin will have a modest pension, but she hasn't spent THAT long as a State of Alaska employee. Todd? He's done ok, but with five children? He's gonna have to scramble to fund his own retirement on top of everything else.
But get this the minute they found out that Trig had Down Syndrome, the financial planning picture changes. Why? Because the Palins insurance needs changed radically.
Trig will likely never be able to work or live independently, and will be dependent upon assistance his whole life. The Palins are confronted with a number of simultaneous financial challenges:
1.) Meet the college/education needs of at least three children and one grandchild. (Track will have the GI Bill, and possibly an ROTC scholarship if he wants it, so he's less of a worry, though still may need some help when he gets out of the Army.
2.) Help Bristol with her own day-to-day expenses and those of her baby.
3.) Provide for the day-to-day needs of Trig, who's going to have some pretty serious special needs and will require more and more time and attention as he gets older and becomes self-propelled.
3.) Provide enough life insurance protection to provide for her family's substantial needs if she got on the wrong airplane or got shot by a rabid libtard.
And here's the rub: Many middle class families opt for cheap term insurance, on the theory that their need for life insurance goes down substantially when the kids are out of school and no longer dependent.
That is not the case here. In the Palin's case, Trig's need for life insurance protection doesn't end when he gets a college diploma and moves out on his own. His need is permanent. The Palins must, on their limited incomes, provide for everything above, AND provide enough money for an endowment to support Trig Palin... probably for decades.
Financial planning for children with special needs is a little different than planning for most families. And it takes quite a bit more cash flow to provide for them. Cash flow the Palin's don't have on a Governor's salary and Todd's pay.
If Palin didn't quit, they could get through the next couple of years in decent shape. But then their options would deteriorate sharply if Palin's star faded. At 48/49 years old, it would be extremely difficult to recover.
The Palins very likely need a substantial amount of permanent life insurance. Not term. Set aside for Trig. If they wanted to be equitable to all their children, they would need a lot more permanent insurance, as opposed to term.
It's a lot more expensive, in terms of cash flow and monthly required premium, to buy that insurance in her late 40s than it would have been if she were in her 20s or 30s. And there's not as much time to build it up, either. Had Palin tried to stick it out on the Governor's salary, it would have been almost impossible.
But quitting, and getting a book out there, and hitting the lecture/fundraiser circuit in the next few years, would allow her to do all that. She can take care of her family, provide a legacy for her other children, spend some time with the kids, create something that creates residual income (book royalties), and STILL have a shot at running for president or senator.
Most importantly, if she doesn't provide for Trig, her critics sure as hell won't. No one else can do it but her.
Maybe she didn't explain it too well. And maybe it's none of our business anyway. But in my view, she did the right thing.
Best of luck, Governor Palin and family.
Splash, out
Jason
Labels: Alsaska, Bristol, finance, money, Palin, special needs, The Left, Track, Trig
