Search found 232 matches

by DC3509
Sat Aug 18, 2018 12:50 am
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

Two options I would consider: Invest age appropriately, have her withdraw 4%, your family and your brother in laws family make up the difference every month. Invest age appropriately. Let MIL withdraw what she needs every month, when the money runs out make up the difference. I think option 1 is th...
by DC3509
Fri Aug 17, 2018 12:34 am
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

1. Point taken about "elderly." I should have titled it "retired relative..." 2. She has been working part time helping one of her friends plan parties and decorate for the last few years. I didn't include this in the initial post because her friend will be moving in a year or so and the job will g...
by DC3509
Fri Aug 17, 2018 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

Why do people think the medical expense part of this is tricky? She is on Medicare. If she needs LTC it would be foolish to pay that out of the $290K. She would simply convert the $290K into a Medicaid complaint annuity, start taking the annuity payments, and immediately qualify for Medicaid. It is...
by DC3509
Thu Aug 16, 2018 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

Why do people think the medical expense part of this is tricky? She is on Medicare. If she needs LTC it would be foolish to pay that out of the $290K. She would simply convert the $290K into a Medicaid complaint annuity, start taking the annuity payments, and immediately qualify for Medicaid.
by DC3509
Thu Aug 16, 2018 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

It looks like she might even have no federal liability at all. Is this a high cost of living area because that seems like high rent for someone in her situation? If her health is good, you might want to look into an immediate annuity for part of her funds. You will also need to plan for the likelih...
by DC3509
Thu Aug 16, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

She is going to have to reconcile her desire to not work with her desire not to live in a place she considers a dump. Forget about the dividend plan. Bad idea and you can read probably hundreds of hours worth of discussion here about it (some people will disagree with my conclusion). What happens i...
by DC3509
Thu Aug 16, 2018 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 74
Views: 5493

Re: Elderly Relative Short on Money

It looks like she might even have no federal liability at all. Is this a high cost of living area because that seems like high rent for someone in her situation? If her health is good, you might want to look into an immediate annuity for part of her funds. You will also need to plan for the likelih...
by DC3509
Tue Aug 14, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Inheritance investment
Replies: 8
Views: 967

Re: Inheritance investment

Did you speak to an attorney about titling assets to sidestep Medicaid? Are you sure that keeping it in her name only will prevent that? +1, I had the same question. What if she is the one who needs LTC? The invest piece is much simpler but certainly less important than the Medicaid protection piec...
by DC3509
Mon Aug 13, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: How to have “what if” discussion with retired parents?
Replies: 48
Views: 4333

Re: How to have “what if” discussion with retired parents?

Lets see your dad and mom made it to there 70s without the help of others (kids). My parents in there 80 manage all money on there own. Never talked about it. They have a will. Thats all we know. Wife's parents passed away in their 80s. They had a will. Never talked about money. Will split everythi...
by DC3509
Sun Aug 12, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 24
Views: 2123

Re: Helping Parents with Retirement

I am writing to encourage you as well. When my dad (involuntarily) retired last year, my parents had a major decision to make on how to invest the lump sum payout he got from his pension. My parents listened to me discuss Vanguard, Bogle, etc. but still wanted to just "talk" to the local financial a...
by DC3509
Sun Aug 12, 2018 1:44 am
Forum: Personal Finance (Not Investing)
Topic: How to have “what if” discussion with retired parents?
Replies: 48
Views: 4333

Re: How to have “what if” discussion with retired parents?

I agree that clear documentation of where the money is and how surviving spouse can access it if need be should be available to spouse. On the other hand, the kids have no such presumptive right to a roadmap of assets, account numbers, passwords etc. All these threads and articles one sees popping ...
by DC3509
Wed Aug 01, 2018 10:11 pm
Forum: Investing - Theory, News & General
Topic: Annuity vs investment
Replies: 40
Views: 2504

Re: Annunity vs investment

I've debated this over and over and posted on multiple threads on this subject, including some where I probably come off as anti-annuity and others where I come off as pro-annuity. I think the answer really depends on extremely individualized circumstances; but something an elder law attorney recent...
by DC3509
Sun Jul 29, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

At what levels of income is LTCI a moot point? Let's say I expect to be able to generate $450 x 365 days = $164,250 a year in income. (Not that that's my number.) From what I have read, average skilled nursing care in a decent facility costs $250-$350 a day. That would seem to make the point moot f...
by DC3509
Sun Jul 29, 2018 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

DC3509 wrote: "That seems to me to be a curious choice when there is a government program that we all pay for through taxes that is available to assist with nursing home care, and there are lawful ways to shield assets and still qualify for the program. Is it a moral objection? That people don't fu...
by DC3509
Sun Jul 29, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

That seems to me to be a curious choice when there is a government program that we all pay for through taxes that is available to assist with nursing home care, and there are lawful ways to shield assets and still qualify for the program. Is it a moral objection? That people don't fully grasp the n...
by DC3509
Sun Jul 29, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

If your plan is to self insure for long-term care you must do these things: 1. Decide which asset you will liquidate first to pay for care. 2. Decide which asset you'll liquidate 2nd, 3rd, 4th, 5th, 6th, etc... 3. Put the list in writing 4. Share the list with your loved ones and make sure they und...
by DC3509
Sun Jul 29, 2018 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Assisted Living Expenses
Replies: 30
Views: 2052

Re: Assisted Living Expenses

Newsflash: "Assisted" living care is overwhelmingly provided by family members. Only minority of people have the financial resources to afford the outrageous and inadequate care provided by institutions. You and I won't be able to afford it, and we're less and less likely to have family members nea...
by DC3509
Sat Jul 28, 2018 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

And considering that the overwhelming majority of people who need LTC need it for fewer than five years, the 'reasonable upper limit' to the risk at today's prices may be around $500k. Even for a couple with a $2 million portfolio, that's manageable. And that assumes that they pay for it out of poc...
by DC3509
Sat Jul 28, 2018 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

And considering that the overwhelming majority of people who need LTC need it for fewer than five years, the 'reasonable upper limit' to the risk at today's prices may be around $500k. Even for a couple with a $2 million portfolio, that's manageable. And that assumes that they pay for it out of poc...
by DC3509
Sat Jul 28, 2018 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

I completely agree with point 3. Insurance is for long tail risk. I can easily afford a few years. A couple of decades is what I want to protect against. Where can you get such a policy for 4k/ yr? I don't think such a beast exists. I think he is being a bit dis-engineous in saying you need X, but ...
by DC3509
Sat Jul 28, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

Here's what I don't understand about LTCI -- would people buy car insurance if there was a government program that insured your car if you didn't do so? Would people buy home insurance if there was a government program that insured your house if it burned down? I think we all know the answers. If yo...
by DC3509
Fri Jul 27, 2018 6:55 am
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10407

Re: An argument against self-insuring for long-term care

The reality is this: 2/3 of seniors who are sitting in nursing homes today are on Medicaid. In some lower cost of living states -- West Virginia, Mississippi, Georgia, etc. -- that number is much higher. There is a lot of fretting on these boards about LTC, and I am not sure it is really justified. ...
by DC3509
Wed Jul 25, 2018 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Buy house for retired mother?
Replies: 72
Views: 4974

Re: Buy house for retired mother?

OP, welcome to the forum, and kudos for appreciating what your parents did for you. You probably know that some members like to play the “more frugal than thou” game; please ignore it, it’s their version of walking uphill to AND from school. I lean towards renting, for ease of transitioning, but I ...
by DC3509
Mon Jul 23, 2018 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Buy house for retired mother?
Replies: 72
Views: 4974

Re: Buy house for retired mother?

Do you have siblings are and they comfortable with this situation? Regardless, I would let your mom buy the house and then give her a monthly allowance to cover the housing expense. You want to be in a position where you’re sending her money every month not having her send you money. Remember, if y...
by DC3509
Sun Jul 22, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Giving money to adult kids
Replies: 23
Views: 3805

Re: Giving money to adult kids

I'm not well versed in this, but it seems like this is exactly the sort of situation a trust is designed to handle. You can set it up so that an outside person (lawyer, trusted friend or family member, etc.) administers the money on behalf of the kids, and only disburses funds to cover things appro...
by DC3509
Sun Jul 22, 2018 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Buy house for retired mother?
Replies: 72
Views: 4974

Re: Buy house for retired mother?

Totally agree with the last two posters -- the prospect of a tragedy is why the mom should be doing Medicaid planning if she otherwise has very modest assets. Maybe you never need to actually exercise it because you are making close to a million and you decide to private pay -- or she never needs a ...
by DC3509
Sun Jul 22, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Buy house for retired mother?
Replies: 72
Views: 4974

Re: Buy house for retired mother?

Gotchas? The mother says "I'll move when the jack booted sheriff shows up and clubs me over the head with an aluminum baseball bat". Maybe she doesn't want to leave. Maybe she can live just fine with 150% of the medium income for a family of 4 supporting just herself. Maybe even a new Jaguar lease ...
by DC3509
Sun Jul 22, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Buy house for retired mother?
Replies: 72
Views: 4974

Re: Buy house for retired mother?

OP, welcome to the forum, and kudos for appreciating what your parents did for you. You probably know that some members like to play the “more frugal than thou” game; please ignore it, it’s their version of walking uphill to AND from school. I lean towards renting, for ease of transitioning, but I ...
by DC3509
Sun Jul 22, 2018 11:50 am
Forum: Personal Consumer Issues
Topic: WSJ Article on Aging -- Scary Stuff..
Replies: 16
Views: 2093

Re: WSJ Article on Aging -- Scary Stuff..

I was able to access the article by googling the title and clicking on the link. This is the tip of the next phase of the baby boomer iceberg. Elderly care will become huge in the next 10-20 years. IMHO part of the solution is for families to step up but when you have no children, or no living rela...
by DC3509
Sun Jul 22, 2018 10:55 am
Forum: Personal Consumer Issues
Topic: WSJ Article on Aging -- Scary Stuff..
Replies: 16
Views: 2093

WSJ Article on Aging -- Scary Stuff..

All, The story is behind the firewall, but if you have access to it, and care about the whole aging debate, I strongly recommend reading the following story from yesterday's WSJ: https://www.wsj.com/articles/america-is-running-out-of-family-caregivers-just-when-it-needs-them-most-1532094538?mod=sear...
by DC3509
Wed Jul 18, 2018 12:30 am
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12178

Re: A different take on retirement income: time segmentation

In Merton's interview -- which is well worth the full listen -- he basically says that not enough people look at annuities; everyone looks at what that total amount of the 401 (k) is -- not nearly enough people are thinking in terms of I make X income now, what can I do to get close to X income in ...
by DC3509
Tue Jul 17, 2018 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12178

Re: A different take on retirement income: time segmentation

But what Merton says -- and I think there is a lot of merit to this is -- for the vast majority of people -- not people like us who sit around and think about these subjects and who read these message boards and follow personal finance as a hobby -- for most just "regular" people -- the actual size...
by DC3509
Tue Jul 17, 2018 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12178

Re: A different take on retirement income: time segmentation

What do you think of the theory that the SPIA allows for a more aggressive equity portfolio that likely will lead to more growth and likely more legacy? I don't buy it. Buying a SPIA is not likely to provide retirees with a meaningfully greater amount in their portfolio to allocate to equities. The...
by DC3509
Tue Jul 17, 2018 1:49 pm
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 46
Views: 4963

Re: Robert Merton on NewRetirement Podcast

...If you do partially annuitize -- let's say just a basic SPIA -- would you feel more confident then being aggressive with the remaining amount being invested? As long as the annuity plus social security covered basic expenses? Yes indeed, regarding the remaining portfolio. My annuities + age 70 S...
by DC3509
Tue Jul 17, 2018 9:17 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 46
Views: 4963

Re: Robert Merton on NewRetirement Podcast

Most of the comparisons I've seen here between a Megacorp or Government pension vs. the lump sum alternative, and a commercially available SPIA for the same lump sum amount, favor the pension. The spousal benefits available are better, and the commercial pension might consider your health while the...
by DC3509
Tue Jul 17, 2018 7:15 am
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 46
Views: 4963

Re: Robert Merton on NewRetirement Podcast

I recommend it. I was just really struck on how he was trying to cobble together a system of retirement that would work for a lot of lower-income to middle-income retirees -- not necessarily BH, but I think his theories would actually intrigue this crowd more than the people they are designed to hel...
by DC3509
Mon Jul 16, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: Robert Merton on NewRetirement Podcast
Replies: 46
Views: 4963

Re: Robert Merton on NewRetirement Podcast

I just came across this podcast today -- I thought it was excellent. In particular, I was intrigued by his discussion of annuities -- not so much for myself, but for my parents who have modest assets, and really depend on social security (and who I fear my depend on Medicaid someday). I feel like th...
by DC3509
Sun Jul 15, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Inlaws need $50k loan for new home, hard time finding lenders
Replies: 17
Views: 2427

Re: Inlaws need $50k loan for new home, hard time finding lenders

Your parents should investigate a Home equity conversion mortgage for purchase. This is a special type of reverse mortgage only available for people 62 or older. Basically -- your parents put a large downpayment on the new house -- usually about 60% but it can be much more if your parents want -- th...
by DC3509
Thu Jul 12, 2018 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: How to help parents "see the light" with index investing?
Replies: 17
Views: 1409

Re: How to help parents "see the light" with index investing?

I agree with others who replied -- I wouldn't get too involved. I am involved in my parents finances, but that's because they do not understand (or care to learn) many things, and the alternative was not good. I do feel like I have done a lot of "good" since getting involved. When my parents were de...
by DC3509
Mon Jul 09, 2018 10:04 am
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

I suggest googling statistics on the percentage of people who actually use nursing home care. I was shocked at how low it was. I don't have the exact numbers but it was something like more than 50% need no nursing home care, 30% are in less than 6 months, and 10% are in a nursing home for a long ti...
by DC3509
Sun Jul 08, 2018 9:55 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Renting where they currently live is not a real option -- very few rentals available and none are nice. One way I have thought of helping them in the new area is for me to buy the house outright and they pay me rent. I am trying to figure out how much they can afford now. I understand I can charge ...
by DC3509
Sun Jul 08, 2018 9:35 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Renting where they currently live is not a real option -- very few rentals available and none are nice. One way I have thought of helping them in the new area is for me to buy the house outright and they pay me rent. I am trying to figure out how much they can afford now. I understand I can charge s...
by DC3509
Sun Jul 08, 2018 9:07 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Update to my previous thread: With very little discussion, my parents have completely shutdown any discussion of a CCRC. I understand that sentiment from some of you which replied here. That view however doesn't resolve the very real short and long-term problems I still have. In the short-term, all...
by DC3509
Sun Jul 08, 2018 8:34 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Update to my previous thread: With very little discussion, my parents have completely shutdown any discussion of a CCRC. I understand that sentiment from some of you which replied here. That view however doesn't resolve the very real short and long-term problems I still have. In the short-term, all ...
by DC3509
Sun Jul 08, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Borrow for BigLaw Partnership Buy-in?
Replies: 26
Views: 4073

Re: Borrow for BigLaw Partnership Buy-in?

OP -- I think only other biglaw attorneys can really appreciate the question. This is not something where you should be getting cute or asking what the upside is, etc. -- you know what the upside is, you become a biglaw equity partner and the right to share in the firm's profits. How about not being...
by DC3509
Fri Jul 06, 2018 11:18 pm
Forum: Personal Consumer Issues
Topic: Carpenter Bees- HELP!
Replies: 17
Views: 2112

Re: Carpenter Bees- HELP!

We had these recently. I am terrified of bees so was insistent that we deal with the problem immediately. Based on my reading and our personal experience, carpenter bees are couples -- the female borrows into the wood, lays her eggs, and then nurses the young, while the male basically flies around t...
by DC3509
Wed Jul 04, 2018 1:49 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

There have been a lot of great replies here -- thank you. To one question posed -- my parents are pretty social people, but have lived in the same town for almost 40 years. Almost all of their friends are people they befriended many years ago -- most through my sister and myself. For the cheaper 55+...
by DC3509
Wed Jul 04, 2018 9:58 am
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Reading these nursing home health inspection reports on the government website are pretty scary. One interesting thing I noticed for the CCRCs I was looking at in my sisters area -- all of them accept Medicaid. So I wonder if there really is a dramatic difference between these places and what you wo...
by DC3509
Tue Jul 03, 2018 6:32 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

I should also say -- my parents are simply not good at planning these things. I need to think through these things or nobody will. They have already made a lot of financial mistakes (claiming SS at 62, no idea how much dads defined benefit pension was worth, no real plan about how much they need in...
by DC3509
Tue Jul 03, 2018 5:35 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 4047

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Listen to your instincts on this. Your parents are too young for a CCRC. Based on my experience, most people enter the independent units when they are in their mid-70’s or older. I am roughly your parents’ age and I’d be miserable in such a place. I appreciate your concern about the future should t...