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Old 07-18-2022, 12:52 PM   #41
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Originally Posted by oldtimer View Post
Did you mean survivor SS benefits, not spousal SS benefits?
Yes I did & thx for clarifying. I need to be more precise in my descriptions.
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Old 07-18-2022, 12:58 PM   #42
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Originally Posted by ivinsfan View Post
Do you happen to know how much money your BIL allocated for heath care in that 2500 a month? In my mind that could be the wildcard. If you can find a VSO to help navigate the VA system that might be helpful. In our state a lot of counties have a VSO or you might check his local VFW , DAV , and the like.
No. Still trying to sort that out and ensure that he has "qualified" coverage from the VA. He thinks he does because my BIL is a "that VA woman in Nashville told me I'm in the system" kind of guy. But, I'll believe it when he has the documentation. Agree we need to keep an eye on this.
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Old 07-18-2022, 01:10 PM   #43
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No. Still trying to sort that out and ensure that he has "qualified" coverage from the VA.
This may be a good place to start:
Eligibility for VA health care
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Old 07-18-2022, 01:31 PM   #44
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I like the idea of consolidating the tax-deferred accounts... hopefully into a single tIRA. Then build a CD or UST or TIPs ladder to provide for his gap from now until he is 66/2. So at $35k a year that would be $215k... about 1/3 of his stash but will provide longevity insurance should he get lucky and live long.

Bear tax efficiency in mind, putting fixed income in the tIRA and equities in taxable accounts where qualified dividends and LTCG will get preferential rates and likely not be subject to tax at all.

For the $80k of cash you could put a year of spending and an emergency fund provision in an online savings account and the rest in CDs.

You also might also consider some i-bonds in his taxable accounts since he is risk-averse.

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Originally Posted by Huston55 View Post
I should have included in the OP that my BIL is in a "no state income tax" state. And, as you can see from his expenses, he will almost certainly remain in the 12% tax bracket. So, a single fund in his taxable account wouldn't cause a big tax hit, and might be worth a small tax bite for simplicity. However, if his FA (when we have that set) recommends a 30/70-ish AA in two low cost index funds/ETFs, and the FA will be there to help rebalance and guide distributions for income, I'm all for that.

I've been reading Bogleheads and found a comparison of VWINX -vs- (60% VSIGX + 40% VTSAX). Wow! I didn't realize how much income VWINX produces; $10-$25k/yr -vs- ~$5K/yr for the 60/40 mix [on a $200k investment]. That is making me reconsider holding VWINX in his taxable account, despite no state income tax.

Thoughts?
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Old 07-18-2022, 01:54 PM   #45
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Originally Posted by braumeister View Post
This may be a good place to start:
Eligibility for VA health care

I don't know anywhere that the actually say what priority they are accepting in real time. For instance when my DH was accepted he was a 6...I don't know if they make that public knowledge.



I do know that at 60 with a lower income VA might not be the best option. Depending on location and quality of care in the area he might be best served staying on ACA.



OP does your BIL get a notice of qualified health benefits from the VA at the end of every year. That should be easy enough to verify.
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Old 07-18-2022, 02:03 PM   #46
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I don't know anywhere that the actually say what priority they are accepting in real time. For instance when my DH was accepted he was a 6...I don't know if they make that public knowledge.
Since you can apply online, I would probably do that. If he's not enrolled they will process it now. One of the sections of the link I posted contains this.

https://www.va.gov/health-care/how-to-apply/

I'm in Group 3 so I've been in the system a long time, but they will send him a letter in the mail when he is enrolled, usually within a week of applying.

There is also a phone hotline he can call to get questions answered, M-F 0800-2000 Eastern time.
877-222-8387
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Old 07-18-2022, 02:06 PM   #47
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Since you can apply online, I would probably do that. If he's not enrolled they will process it now. One of the sections of the link I posted contains this.

https://www.va.gov/health-care/how-to-apply/

I'm in Group 3 so I've been in the system a long time, but they will send him a letter in the mail when he is enrolled, usually within a week of applying.

There is also a phone hotline he can call to get questions answered, M-F 0800-2000 Eastern time.
877-222-8387

I'd try the hotline first until he is 100% positive he wants to enroll. Or look for the VA health care annual form. If/when his service connected is approved he should jump to a 3 at a minimum.
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Old 07-18-2022, 02:35 PM   #48
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[QUOTE=ivinsfan;2802510]I don't know anywhere that the actually say what priority they are accepting in real time. For instance when my DH was accepted he was a 6...I don't know if they make that public knowledge.



I do know that at 60 with a lower income VA might not be the best option. Depending on location and quality of care in the area he might be best served staying on ACA.



OP does your BIL get a notice of qualified health benefits from the VA at the end of every year. That should be easy enough to verify.[/QUOTE]

Quote:
Originally Posted by braumeister View Post
Since you can apply online, I would probably do that. If he's not enrolled they will process it now. One of the sections of the link I posted contains this.

https://www.va.gov/health-care/how-to-apply/

I'm in Group 3 so I've been in the system a long time, but they will send him a letter in the mail when he is enrolled, usually within a week of applying.

There is also a phone hotline he can call to get questions answered, M-F 0800-2000 Eastern time.
877-222-8387
BIL is just now applying for VA heath car so, still working on confirming (and getting documentation) that BIL has VA health coverage, and what group.

Brau-I'm also Group 3.
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Old 07-18-2022, 02:40 PM   #49
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I'd try the hotline first until he is 100% positive he wants to enroll. Or look for the VA health care annual form. If/when his service connected is approved he should jump to a 3 at a minimum.
Agreed. Given that BIL has at least one Presumptive Condition, I expect he'll be 10-20% Service Connected Disability, making him Group 3.

For those familiar with VA health care, what are your thoughts about how comprehensive it is if you're Group 3 and it's your only provider? I am VA Group 3 but, had Tricare @ age 60 and now have Primary-Medicare/Secondary-Tricare. So, I never really used much VA health care.
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Old 07-18-2022, 03:16 PM   #50
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For those familiar with VA health care, what are your thoughts about how comprehensive it is if you're Group 3 and it's your only provider? I am VA Group 3 but, had Tricare @ age 60 and now have Primary-Medicare/Secondary-Tricare. So, I never really used much VA health care.
I'm the same as you, but I make it a point to visit my local VA clinic every year for a checkup. I've found them to be wonderful. Very caring folks and they will do anything for you.

Another point is that long ago I avoided going there because I had Tricare and felt I should let them see those who needed their care more than I did. But one of the docs there told me I had it all wrong. As long as you visit your local facility at least once every two years, you are in their system and that helps their budget. So I've been going in every year since then. Sometimes its just for a chat, but other times I've asked for lab work, and occasionally some specialized service like orthotics.

If I had to rely solely on VA medical care I'd be perfectly happy doing so.

In addition to the local clinics, which are all over, there is also a large VA hospital nearby, and it has a good reputation as well. There are horror stories about VA medical care of course, but the same applies to many other health systems.
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Old 07-18-2022, 03:29 PM   #51
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Agreed. Given that BIL has at least one Presumptive Condition, I expect he'll be 10-20% Service Connected Disability, making him Group 3.

For those familiar with VA health care, what are your thoughts about how comprehensive it is if you're Group 3 and it's your only provider? I am VA Group 3 but, had Tricare @ age 60 and now have Primary-Medicare/Secondary-Tricare. So, I never really used much VA health care.

We have excellent VA care but our state is nationally ranked for good health care. Our local VA has no hesitation about referring to non VA providers in emergent or tricky situations. However a group of Vets my DH knows from other areas talk about inattentiveness, long appt waits and general poor interactions with their VA providers. So every vets experience can be different which isn't really acceptable but is reality. MY DH was referred to an outside nationally ranked heart center (local) for urgent attention... VA covered everything stemming from a 5 day hospital stay.



He would have been expected to stay in the VA system once the care became routine. He was almost 65 and because he wanted to retain good access to the non VA clinic we purchased him a good Medicare supplement. So we never actually had experience with the VA cardiac docs.



In reality its an individual choice ..the nice thing is you can have VA Medicare and supplement at the same time with no problems. Of course this won't help your BIL for another 5 years.
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Old 07-19-2022, 12:50 PM   #52
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He has what I'd call "hobby" jobs; raising and selling livestock (lives on 19 acres), which generates a few hundred $$$ per month. Honestly, I think he'd prefer to just do that if he can.

I hear you on the "draw down" of assets while deferring SS. But, that's easily analyzed to help choose the best path (financially at least). I'm using FireCalc to do quick comparisons. I plan to present that info to him, give some advice, and let him (and hopefully an FA) finalize the decision. However, I do like the ideas you, bc & others have suggested for the near term (7yrs +/-) regarding products with virtually no risk (CD ladder, etc.)

Regarding health care, I had the "Don't dare go naked!" talk and believe I've convinced him to use Cobra in the short term while he determines what VA care he may get.
Did he pay SS/Medicare taxes on those earnings?

All he needs is 10 quarters worth of earnings over the last 5 years to be eligible for SS disability.

For SS disability he'll want to hire a lawyer...they work on contingency & are paid a capped amount on the back-end only if he receives benefits:

https://www.nolo.com/legal-encyclope...wyer-cost.html
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Old 07-19-2022, 02:19 PM   #53
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Wouldn't his eligibility for SS disability be based on his deceased wife's work history as well?

From ssa.gov:

https://www.ssa.gov/benefits/survivo...%2071%C2%BD%25.

"Certain family members may be eligible to receive monthly benefits, including:
A widow or widower age 60 or older (age 50 or older if they have a disability)."
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Old 07-19-2022, 02:40 PM   #54
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The BIL has a crushed hand which likely means he doesn't qualify for SS disability.. remember it's not being able to work at all not just not being able to do the job you were disabled from. IMO not worth expending the time and effort on. He'd be better served working on the VA end.
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Old 07-19-2022, 04:46 PM   #55
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Did he pay SS/Medicare taxes on those earnings?

All he needs is 10 quarters worth of earnings over the last 5 years to be eligible for SS disability.

For SS disability he'll want to hire a lawyer...they work on contingency & are paid a capped amount on the back-end only if he receives benefits:

https://www.nolo.com/legal-encyclope...wyer-cost.html


Yes he has 10+ quarters. But, his early (62) SS payment is only $850-ish/mo.
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Old 07-19-2022, 04:47 PM   #56
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The BIL has a crushed hand which likely means he doesn't qualify for SS disability.. remember it's not being able to work at all not just not being able to do the job you were disabled from. IMO not worth expending the time and effort on. He'd be better served working on the VA end.


Agreed
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Old 07-19-2022, 05:53 PM   #57
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Sorry for your loss. Don’t forget to do a search for unclaimed property for every state your sister ever lived in. Amazing what may pop up. Probably check under your BIL name as well
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Old 07-19-2022, 06:33 PM   #58
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You are very kind to be helping your BIL handle this. I'm sure it's overwhelming if he were trying to do it himself. Always helps to have someone reliable and 'neutral' to assist when faced with a ton of new data to process!

I would strongly suggest when/if you find an FA for your BIL, that you not only attend the first couple of meetings with him, but also make sure that he sees, talks, or Zooms with his FA on an annual basis. An FA needs to know what's going on with a client in order to be of maximum assistance.

You want to be proactive when using an FA. As an example, pre-pandemic we were seriously considering selling our SFH and looking into senior facility living. Since some require a fair amount of up-front payment, we talked with our FA during a regular annual mtg about the idea.

He worked out a rough total of what he could liquidate quickly, should we need to move fast (good facilities almost always have waitlists). We ended up not going through with the move, but it was reassuring to have a general # to have on hand while we were researching.

Emphasize to your BIL that an FA should be considered a partner in his financial stability. Any major event should be communicated to an FA - in the industry we listed them as:
- Death (yours, for example; should you pre-decease him)
- Change of Health
- Change of Job/Income

The final three probably don't apply to him:
- Marriage
- Divorce
- Children

Best of luck to you and your BIL as you two work your way through this.
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Old 07-19-2022, 09:09 PM   #59
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A volunteer with the fb group "Social Security Intelligence" educating people about their SS benefits.

For Social Security - if his SSDI amount is less than her SS eligibility, he should wait until the Full Retirement Age (age 66 and some months) to file for the "Surviving Souse" benefit. This is so that SS benefit will not be reduced for filing early. The FRA for the "surviving souse" benefit is actually a few months earlier than his own FRA.

Is there any family member that can help him learn how to make and follow a budget? Can as many of the bills as possible be put on auto pay?
Is there a city Senior Center where they may have a widow support group, a hot lunch and classes to help him adjust?
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Old 07-20-2022, 05:43 AM   #60
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I've been reading Bogleheads and found a comparison of VWINX -vs- (60% VSIGX + 40% VTSAX). Wow! I didn't realize how much income VWINX produces; $10-$25k/yr -vs- ~$5K/yr for the 60/40 mix [on a $200k investment]. That is making me reconsider holding VWINX in his taxable account, despite no state income tax.

Thoughts?
I would investigate that result for myself. Start with the fund description for VWINX. This is from Yahoo.

Quote:
Fund Summary
The fund invests approximately 60% to 65% of its assets in investment-grade fixed income securities, including corporate, U.S. Treasury, and government agency bonds, as well as mortgage-backed securities. The remaining 35% to 40% of fund assets are invested in common stocks of companies that have a history of above-average dividends or expectations of increasing dividends.
I would look at the actual distributions of VWINX during troubled times especially. And of course compare this to the VTSAX/VSGIX 35/65 mix.

I'd also want to consider this in the light of all finances and income. You'd want to make absolutely certain you have very good projected tax estimates. The bottom line is what's important to B-I-L - how much does he get to spend? And does this change maximum income requirements in other areas I don't know about. I don't profess to understand everything, but I'm very cautious about overlooking certain items when giving advice or direction.
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