Terrified. Begging for help - Income/Investing

[brewer12345]

Term Life
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The Life Insurance company reports to the "Medical Insurance Bureau"......so when I apply for insurance now, the underwriter sees that, and it's automative turn-down...even for "no exam needed" policy. Once I'm examined by a doc, I'm told company X will "re-look" at me but of course, that's ONLY if the doc offers some positive news.

Maxed out with no-underwriting insurance thru work. There IS a bigger policy available, thru work but that is subject to underwriting. I dunno if underwriting standards are more lenient cause it's a group policy, but I imagine when they see "protein in urine" at the Medical Insurance Bureau.... that's not gonna make them happy.


Portfolio
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YES, i'm trying to be as conservative as can be. Trying to make it as passive an income-stream as possible. Here's where I request more critique, and opinion:

$4mm:
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1.)Yearly return of 2.75%

2.)Assuming 3.5% increase in yearly withdrawals.

3.)A portfolio that is rather low risk, and rather passively managed. Ie money put into CD's, Vanguard Wellsley, wellington, etc where I put the money in, and pray for 40 years of 2.75% returns, and 3.5% yearly inflation for expenses.

Is that realistic? Too conservative? Too wishful?

Keep in mind, this is 5 years from now. No crystal ball, but hoping interest rates for savers are higher than today so please factor that in.

Thanks

I will say it again: start playing with firecalc to get some idea of what historical returns from various portfolios look like. A 60% equity, 40% fixed income portfolio would get you solid 40 year survivability with a 3.x% withdrawal that increases with inflation. That mix is readily available in low cost, passive form by simply dumping the money into one of the many good balanced funds out there that have low costs (Vanguard Balanced, wellington, etc.) and all your DW would have to do is leave the money on autopilot and simply take the annual withdrawal every year. This is as simple and low cost as it gets and the learning curve would be not steep at all. More importantly, it will keep you and your survivors from doing anything godawful stupid with the money, which all of us are unfortunately prone to doing.

Are you a candidate for a transplant?

 

[MRG]

I hope you get good news on 11/11. My DF(96) had an MRI done showing a growth on kidney, his M.D. (who did not order the test, and is not a specialist) suggested cancer. DF did not go back, for 3 months, to the specialist that ordered the MRI. Instead he assumed the worst, giving himself 3 months to live. He went and notified all the extended family 'I have 3 months to live'. DF has Dementia too.

Well after he didn't pass he finally went back to the specialist. DF learned he has a non-life threating tumor. Self diagnosis is sometimes wrong.

Hope you get good news.

Edit to add: BTW your not an idiot.

Best wishes,

MRG

 

[Keim]

Not trying to be harsh, but... You've got $4m freakin' dollars. The family will be fine financially, even if they do have to adjust lifestyle a little bit. Your wife can learn the little bit that is necessary to set-up and maintain a lazy /boglehead portfolio in the next few months, let alone years.

Worry about your health. The finances are fine.

Tell your wife your fears and start attacking this head-on. I know how important my wifes support has been as I've had major health issues. Get her up to speed ASAP. You are supposed to be a team.

Rant Off.

 

[NW-Bound]

This week is the first time she even looked at bank statements cause i was showing her where all the money is. Point being if TODAY were D-DAY... she would have NO clue about a 'bubble' or 'irrational exuberence' or ' buy on the dip' or "company X had a bad quarter, but long term prospects are good'.

Yes, your wife must know more about money management. However, putting money in a fund like Wellington keeps her from having to worry about the active investment aspects.

I said the above, although I am a stock picker and am still having fun. Sometimes I beat the market (and Wellington), sometimes not. But I already told my wife that's where the money should go if I croak suddenly. Of course if I know it's coming, I will prearrange that for her.

Look at it this way. If the economy deteriorates, and things start to go downhill, a lot of people would be in a lot worse shape than a family with $4M. Surely, your family's standard of living would go down some, but people adapt, particularly when everybody around you suffers worse. So, stop worrying about money.

On your health, even with total kidney failure, dialysis can get one going for many years while waiting for a transplant. I know it is very upsetting for one to have this illness at the age of 38, but life's often unfair and we just have to deal with what falls on our lap.

I wish you the best in seeking treatments.

 

[ziggy29]

Yes, your wife must know more about money management. However, putting money in a fund like Wellington keeps her from having to worry about the active investment aspects.

This is something we struggle with. My wife, love her to death, but to her personal finance and investing is almost like a trip to the dentist. I have to constantly update my "if I get hit by a bus tomorrow" letter with instructions about where our money is, where our insurance is, and how to invest and proceed in the future.

I've basically told her to invest in an age-appropriate lifecycle fund from a place like Vanguard, Fidelity or Schwab, since it's easy to understand, it doesn't require a lot of hands-on tinkering and has a relatively appropriate asset allocation and tolerable if not very low fees. (At least while she's fairly ignorant about investing.)

 

[brewer12345]

This is something we struggle with. My wife, love her to death, but to her personal finance and investing is almost like a trip to the dentist. I have to constantly update my "if I get hit by a bus tomorrow" letter with instructions about where our money is, where our insurance is, and how to invest and proceed in the future.

I've basically told her to invest in an age-appropriate lifecycle fund from a place like Vanguard, Fidelity or Schwab, since it's easy to understand, it doesn't require a lot of hands-on tinkering and has a relatively appropriate asset allocation and tolerable if not very low fees. (At least while she's fairly ignorant about investing.)

My "got hit by a bus" letter says basically the same thing.

 

[retire2020]

My sin: I've neglected health and planning. NOT confirmed but reason to believe I have kidney disease.

OP: I hope it never gets confirmed and all the results are negative. 4M should be sufficient so do not worry too much. Take care of your health first.

 

[ziggy29]

My "got hit by a bus" letter says basically the same thing.

I also had to add a bunch of stuff about liquidating some collections of mine and such. That all said, enough of the morbid talk -- here's hoping for the OP that the medical concerns are either overstated, misdiagnosed or treatable.

It is hard to deal with these issues with a spouse that seems disinterested in these aspects of personal finance.

 

[WestcoastRN]

Proteinuria (protein in the urine) is a symptom of many things, primarily diabetes, hypertension (high blood pressure), and/or autoimmune disease. All of these can be treated with medications, diet, exercise, and basic lifestyle changes. I've seen patients throughout my career, young and old, with moderate renal disease. It is treatable and not a death sentence. My own dad was diagnosed with proteinuria around the age of 40, found out he had diabetes. Lived to 85, never needing dialysis or a kidney transplant.

I'm glad you hear you have gone to a specialist, blood work pending. You are being proactive now with your health, not waiting to see if you get sicker (like some people do).

 

[harley]

Proteinuria (protein in the urine) is a symptom of many things, primarily diabetes, hypertension (high blood pressure), and/or autoimmune disease. All of these can be treated with medications, diet, exercise, and basic lifestyle changes. I've seen patients throughout my career, young and old, with moderate renal disease. It is treatable and not a death sentence.

True 'nuff. If protein in your urine was a death sentence, I'd have been dead 8 years ago. As WestcoastRN says, diabetes is a big cause for it, and that's what it was for me. Got it under control quite nicely with no medication, then it came back when I started low-carbing (too much protein), then back down when I moderated my meat intake. It's just another symptom of too much fun. Hell, David Crosby is still alive after a liver transplant, and there's no way either of us has done as much damage to our bodies as he did. I tried, but I didn't have enough money.

Anyway, back on track, don't panic and wait to see what develops. As far as DW, you probably aren't giving her enough credit. If the worst happens, she'd deal with it. People do, even without a $4M safety buffer.

Good luck.

 

[Meadbh]

As WestcoastRN said, there are many treatable causes of proteinuria. They even include urinary tract infections! Before jumping to the conclusion that you have a fatal disease, have a thorough checkup, ideally with a nephrologist. And please don't keep DW in the dark, either about the proteinuria or the investments. If she was smart enough to marry someone who made $4m, she is smart enough to learn to manage it.

 

[DevonMiles19]

Thanks RN

Proteinuria (protein in the urine) is a symptom of many things, primarily diabetes, hypertension (high blood pressure), and/or autoimmune disease. All of these can be treated with medications, diet, exercise, and basic lifestyle changes. I've seen patients throughout my career, young and old, with moderate renal disease. It is treatable and not a death sentence. My own dad was diagnosed with proteinuria around the age of 40, found out he had diabetes. Lived to 85, never needing dialysis or a kidney transplant.

I'm glad you hear you have gone to a specialist, blood work pending. You are being proactive now with your health, not waiting to see if you get sicker (like some people do).

(Apologees folks, I know this is an investment thread)

WC-RN.....also, my "micro alb/creat ratio" is high. Ever heard of that? My Nephro said it certainly could be kidney disease, but he said sometimes it's just a function of high blood pressure, and if bp is brought in line, then microalb/creat ratio goes down. Ever heard of that? Thanks

 

[Buckeye]

Thanks DFW....

By Nov 11th I should have the "real" prognosis as that's when blood results will be in, and looked at by specialist.

Lifestyle: Food used to be my life. For the last 16 days:

*25-30 mins daily walking.
*Have only drank water, period.
*Sodium at 1500 mg/day.
*No red meat.
*Limited chicken and dish.
*Fruits and veggies daily.

Down 12 pounds. Blood pressure still high, but down a few points.

Enjoying family all we can, but sometimes it's tough to hug my kids or wife cause of what I fear is down the corner. Life has lost what innocence that was there for me. Have told nobody. Will have to weigh that once I know results.

Make sure you check your Vitamin D level. The doc told my mom that her test results could mean dialysis due to taking a 2-part BP med a year (at least) longer than she should have (can hurt the kidneys in some people). I insisted her Vitamin D level also be checked and it was found to be negligible. She immediately stopped taking the BP med which stopped more damage and she took lots and lots of Vitamin D to get her level up to 60.

All bad test results were gone within just 2-3 months. Thank goodness because she would have refused dialysis and that would have been the end of her. That was 3 years ago and now she's doing great at almost 80!

 

[akck]

I'd say you have enough time to start your wife's investment education. I'll suggest the book I usually recommend for the masses:

Amazon.com: The Investment Answer: Learn to Manage Your Money & Protect Your Financial Future eBook: Gordon Murray, Daniel C. Goldie: Kindle Store

At minimum, she should get out of it that most actively managed funds do not beat their index. If you decide to keep the manager, she'll at least know that they might be pushing stuff to enrich themselves.

 

[Alan]

My "got hit by a bus" letter says basically the same thing.

Same here, plus I've already put our finances on auto with the majority of money in Wellington, Wellesley and Target date funds, with the dividends going into MM accounts to supplement the pensions. I will sometimes shift money a little to maintain a 40/50/10 AA but if it was never touched then it would tick along just fine.

OP: I hope it never gets confirmed and all the results are negative. 4M should be sufficient so do not worry too much. Take care of your health first.

+1

Even if your worse thoughts are confirmed and your kidneys fail it is very survivable. This last year a niece of DW's (in England) in her late 20's had total kidney failure requiring dialysis followed by a kidney transplant which has worked really well. She has now been given permission to do international travel.

While we were over visiting in August we went out to dinner with DW's brother at a Rotary Club event, and at our table was a great guy in his 70's who had a kidney transplant 15 years earlier. That kidney had now failed and he was back on dialysis while waiting for a donor, but the dialysis was self administered. He said it was no big deal to hook himself up 2 or 3 times a week to the machine that had been provided for home use.

 

[braumeister]

There are so many things that can result in anomalous lab readings.

I remember that once on a physical, my doc became quite concerned about my results and seriously wondered about my liver functions. Then I told him that a few days before my blood draw I had run my first marathon and he immediately relaxed and said "Never mind." Subsequent results went back to normal.

One thing you haven't mentioned is what your actual spending has been. Have you done any tracking of your spending by category? If not, that will be crucial to your planning.

 

[jclarksnakes]

(Apologees folks, I know this is an investment thread)

WC-RN.....also, my "micro alb/creat ratio" is high. Ever heard of that? My Nephro said it certainly could be kidney disease, but he said sometimes it's just a function of high blood pressure, and if bp is brought in line, then microalb/creat ratio goes down. Ever heard of that? Thanks

An elevated ACR (albumin/creatinine ratio) can indicate kidney disease or diabetes or hypertension. It can also just be a one time not too serious issue. A one time elevated ACR is fairly common, especially in overweight or borderline diabetic or hypertensive people. People who are either extremely muscular or have very little muscle mass also will often have strange creatinine levels which will of course cause a skewed ACR. I have looked at lab results for thousands of patients. If everyone on this forum were to have full labs drawn today most of them who are otherwise healthy would have at least a few out of normal limits lab values. If I was told that I had an elevated ACR I would be concerned but not too concerned unless I had a repeat ACR that was also elevated. Think good thoughts until you get more information on this.

 

[47]

The amount seems quite adequate. But still you need to make sure that it gets to the ones you want to at the right time.

I hope everything turns out all right.

The following are good to follow in general for everyone. But when you are worried, they may provide an outlet to channel your energy and in fact help in maintaining a sense of control.

You mentioned the total amount but not where they are right now. Just make a clear and complete list of everything, documenting access information, passwords etc. with any instructions for actions to be taken on specific events/times etc.

Simplify the management/access of where they are managed/located. Simpler the better. Make sure each and everyone of those investments are titled appropriately and have beneficiaries designated appropriately.

When it goes to the designated beneficiary the cost basis is stepped up. If properly planned, it could mean a huge difference. $4mm with a $3mm basis is very different from a $4mm with a $2mm basis.

Make sure life insurance policies are put in the appropriate holding vehicles (trusts) to minimize any tax impact.

Even if everything goes as is to the spouse, it will be helpful to prepare an explicit will that would stand up legally.

You can always amend the will twenty years from now and name your favorite Vegas blackjack dealer!

Good luck.

 

[Buckeye]

A friend of mine became a very rich widow on 9-11 (nothing to do with the WTC but may have been due to the stress of the day). She was only 40 and was dating after awhile. She was always concerned about protecting her financial assets from a scammer.

No one would necessarily know how much she was worth but she had all the outward signs of wealth so it wouldn't be hard for someone to figure it out. As it turned out, she married a guy wealthier than she who has been increasing his wealth during their marriage.

Hopefully, OP's wife won't have to worry about this because OP is going to be fine but vulnerability to scammers has to be considered.

 

[urn2bfree]

I am still waiting to hear how your advisor is earning that $20,000 a year. Probably spends a whole 8 hours a year on your portfolio, so he is making $2500 an hour....nice! Or maybe he working 40 hours a year just for you, stil a very generous $500 an hour and I want to see time sheets regardless.
FIRE THE THIEVING ADVIOR!!!!
You can hire an advisor for a much lower AUM, like Portfolio Solutions, or a flat rater like Evanson, or use Vanguard services for free, or find a fee only financial planner who won't charge much more than $200 an hour and won't take 100 hours a year. More likely fewer that 5 hours a year.

 

[DevonMiles19]

huston55

1% on $2M is $20,000, not $2,000. Ditch the advisor.

I think 3.05% plus inflation is very realistic. The CDs will get you 2% now and likely more in the future and, as stated before, a single highly rated mutual fund like Vanguard Wellington will earn well over the 4.10% needed for total portfolio return to be >3.05%. Wellington's 10 yr and ITD (since 1929) returns have both been >8%/yr.

Hi Huston (and everyone)....

I've been looking at Wellington and Wellsley and it looks so tempting, even easy. Historical returns are 8% so heck, what if I just forecast 4% returns? I park the money there, and Wife has to live on $160k per year....very strong right?

My consternation is that of course there are bear markets. I'm worried about $800k going missing during a 20% crash.....and of course that will come right when college money is needed, or something like that.

That's why I'm hoping this might work:

$2,100,000 in CD's@2.5% (Today it's 1.8%, hoping by 2019 it's 2.5)

$1,900,000 in Wellington/etc @3.5%


This generates 119,000 pre-tax per year theoretically, or 2.98% returns.

In "How long will my money last" calculators.....if I use this return, factor in 3.5% annual inflation in the withdrawals every year ..... factor in large college costs....

That means DW would be "60" when both kids are theoretically debt-free college grads.

DW would have $2,000,000 + own a home free and clear.

That would give her $6,000 per month withdrawals for 25 years.


How's that sound?

 

[Meadbh]

How much will $6000 per month buy you in 25 years?
What if DW lives to be 100?

 

[Gumby]

I am (slowly) creating the "when I wake up dead" folder for the young wife. If I have not already accomplished the task by that time, I will tell her to put it all in VWELX, and then, every December 31, take out $XX,000 and put it in the bank. The End.

 

[DevonMiles19]

The other scary thing is that each person gets $500k worth of stocks/bonds per bank insured by the Feds.

So if I put the whole pot at Vanguard, only $500k out of 4mm is insured. Does this concern any of the savers/investors on this board?

 

[WestcoastRN]

(Apologees folks, I know this is an investment thread)

WC-RN.....also, my "micro alb/creat ratio" is high. Ever heard of that? My Nephro said it certainly could be kidney disease, but he said sometimes it's just a function of high blood pressure, and if bp is brought in line, then microalb/creat ratio goes down. Ever heard of that? Thanks

Yes, the albumin (protein)/creatinine (muscle metabolism waste product) ratio is a measure of kidney disease. Kidneys are very sensitive to untreated high blood pressure and diabetes where the delicate filtration system within the kidneys gets damaged over time. Thus, large amino acids, such as proteins, end up getting excreted through the kidneys - this is measured and reported as the albumin part of the test. Same with creatinine. The difference is creatinine should be in your urine. So if the creatinine measurement is low (not being filtered through the kidneys), then it has no where to go but back into the bloodstream.

Age/gender/race will factor in when diagnosing kidney disease. Your age alone is an excellent predictor of recovery: you have the resilience that older folks don't. Have you been diagnosed with high blood pressure? Or diabetes? It sounds like you have gone from seeing a primary care physician to a nephrologist who is now managing your health issues.

Before you go in on the 11th to your next appointment, make sure you have a (long) list of questions, including your suspicions that you have a terminal disease. You need to allow for a long discussion, get your questions answered, and hopefully relieve you of your worries and stress. And please do include your wife in these discussions, she needs to be part of the treatment course.