H Andersson: you are right, but that just affects your decision about how much you can justify consuming.
Chi: You are right that you might want to have insurance against future income reductions, and there really isn't a market for such insurance (for the standard economist reasons of moral hazard and adverse selection), so you might we…
H Andersson: you are right, but that just affects your decision about how much you can justify consuming.
Chi: You are right that you might want to have insurance against future income reductions, and there really isn't a market for such insurance (for the standard economist reasons of moral hazard and adverse selection), so you might well want to have some precautionary savings. So setting your money aside and giving it away later on is fine. But there is the danger that you will be tempted to spend it, or that your heirs will try to get their hands on more of it than you wanted them to get and less will go to charity.
H Andersson: you are right, but that just affects your decision about how much you can justify consuming.
Chi: You are right that you might want to have insurance against future income reductions, and there really isn't a market for such insurance (for the standard economist reasons of moral hazard and adverse selection), so you might well want to have some precautionary savings. So setting your money aside and giving it away later on is fine. But there is the danger that you will be tempted to spend it, or that your heirs will try to get their hands on more of it than you wanted them to get and less will go to charity.