Ohio Tealady
Dryer sheet wannabe
I'm wanting some input from others on my sister's situation.
My sister is 62 and retired with a pension. Her husband is 71 with SS & pension. This is a second marriage. When they married 10 years ago, their financial planner had them take the profit from the sale of their respective homes and invest with him. They purchased a new home together using an investment to make the monthly payments. The husband became ill and they sold their home for a one floor condo. Before they could move in, his health deteriorated and he is now in a nursing home, unfortunately most likely permanently. (a side note they have decent long term care insurance). For the condo, my sister chose to do get another mortgage and use the investment vehicle to make the monthly payments. My sister had no significant assets before this marriage. Her husband had 403b and possibly life insurance money from his wife's death. I am uncertain of actual amounts, but am guessing somewhere between 500K to 7500K.
I have never heard someone use an investment to pay their monthly mortgage. Before doing this the second time, I tried talking with my sister about their financial situation and perhaps selling some investments to pay for part of the new condo. Her response appeared to be a combination of she was unsure of what I was talking about and not wanting to disclose her financial situation. Her daughter shares some of my own concerns.
We are planning to approach her in another month - she just moved into the condo - to discuss our concerns about the advice of the financial planner.
My questions to the forum
1. are you familiar with someone using an investment to pay their monthly mortgage? Does this appear sound?
2. Any advice on how to approach my sister about our concerns without offending her? We would like to review her financial situation with her, along with her 2 daughters. I would rather have her mad at me now than wait 20 years from now and learn she's been taken to the cleaners. She's been mad at me in the past and gotten over it.
My sister is 62 and retired with a pension. Her husband is 71 with SS & pension. This is a second marriage. When they married 10 years ago, their financial planner had them take the profit from the sale of their respective homes and invest with him. They purchased a new home together using an investment to make the monthly payments. The husband became ill and they sold their home for a one floor condo. Before they could move in, his health deteriorated and he is now in a nursing home, unfortunately most likely permanently. (a side note they have decent long term care insurance). For the condo, my sister chose to do get another mortgage and use the investment vehicle to make the monthly payments. My sister had no significant assets before this marriage. Her husband had 403b and possibly life insurance money from his wife's death. I am uncertain of actual amounts, but am guessing somewhere between 500K to 7500K.
I have never heard someone use an investment to pay their monthly mortgage. Before doing this the second time, I tried talking with my sister about their financial situation and perhaps selling some investments to pay for part of the new condo. Her response appeared to be a combination of she was unsure of what I was talking about and not wanting to disclose her financial situation. Her daughter shares some of my own concerns.
We are planning to approach her in another month - she just moved into the condo - to discuss our concerns about the advice of the financial planner.
My questions to the forum
1. are you familiar with someone using an investment to pay their monthly mortgage? Does this appear sound?
2. Any advice on how to approach my sister about our concerns without offending her? We would like to review her financial situation with her, along with her 2 daughters. I would rather have her mad at me now than wait 20 years from now and learn she's been taken to the cleaners. She's been mad at me in the past and gotten over it.