Friday, July 10, 2009

Palin's retirement

Jason at Countercolumn points out that Palin's choice to step down is an excellent one, from a financial perspective.

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.
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.
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.

And his analysis doesn't even mention the half-million dollars already lost to fighting frivolous ethics complaints – money they also don't have.

Best of luck, Governor Palin and family.

Splash, out


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