Idea 2) Simplify this thing and do it year-to-year to reduce your exposure, reduce the paperwork, and reduce risk at his death for the "deal" to go wrong. "Dad, are you getting the free money from your company in your 401K? Would it help if I gave you loan?" Then, the deal with him is that the first year after he gets the company match, he takes out everything--he cleans out the 401K. He'll pay penalties and taxes--so what? He wouldn't have anything without your help, and he shouldn't mind paying taxes on free money. Anyway, if he's 59 I don't think he'd have to pay any penalties, just taxes. (Check all of this--the IRS rules and what his company 401K folks will allow).
I think this is what im going to go with.
No, invent was deliberate. I was using the term to illistrate that i don't have a substaintial amount of money to invest nor give away.Did you mean "invest" and not "invent?"
I guess I should point out, i don't have access to 50K to buy the annuity either. Even if I had 50K in a savings account i wouldn't do it as giving that type of money away is beyond my means.If this will relieve your guilt, go for it
I would like to thank everyone for contributing to this thread. I think I have a very good solution that limits my exposure.
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