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Re: help with pension options for my MIL
Old 05-08-2007, 09:25 AM   #21
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Re: help with pension options for my MIL

Quote:
Originally Posted by Bikerdude
A quick check at http://www.immediateannuities.com/ says 61K will yield $388/mo. for life non-cola starting at age 65.
Thanks for the link! Fortunately, from what we can tell right now, she won't need that money for quite a while, so for now I think she's ok with investing it, and BIL is satisfied that her cash flow is good enough that he's good with investing it also.

Quote:
Originally Posted by Brat
Were I she I would but my $ in something like Wellington or Dodge and Cox Balanced. Both have a history of managing the down side well with a steady-Edie 10%+ average return.
Yes, I was thinking either a Target Retirement or if she could handle a little more complexity, US stock, US bond, and international index funds. I'll start a new thread with that when I get the advisor picks for comparison.

Quote:
Originally Posted by Brat
If her annuity payments go directly to her IRA fund custodian in a MM, she can invest that too as she accumulates sufficient sums.
The annuity payments she'll get still count as regular income, right? Or are you saying they could be classified as IRA rollover money? Either way, yes, she can definitely be investing this money, especially these next few years while she's still working.
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Re: help with pension options for my MIL
Old 05-08-2007, 11:29 AM   #22
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Re: help with pension options for my MIL

The annuity payments will be counted as regular income. She could use that annuity income to increase her current IRA/401k contributions to the max, for example. Or she could invest it outside an IRA. The only difference between IRA/401k savings and personal savings is that the income generated is sheltered until withdrawal in an IRA/401k (increasing the value of compounding over time) and savings in an IRA/401k are usually protected from creditors.
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Re: help with pension options for my MIL
Old 05-08-2007, 05:40 PM   #23
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Re: help with pension options for my MIL

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Originally Posted by Brat
The annuity payments will be counted as regular income.
Ok, that's what I thought. Since it looks like she won't need the money for a while, I think the IRA is definitely worth it. So far, so good with the creditors - there has not been as much harrassment as we expected, although of course there's been some. I am wondering if it's because there were absolutely no assets and no probate. Or maybe the worst is still coming...
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Re: help with pension options for my MIL
Old 05-08-2007, 10:37 PM   #24
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Re: help with pension options for my MIL

If she can max out her sheltered savings there is that much less for creditors to fight over should there ever be an issue.
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