Huston55
Thinks s/he gets paid by the post
BACKGROUND: My sister recently died and I'm trying to help my BIL arrange his affairs (finances, health care, etc.).
SITUATION: My BIL is very unsophisticated financially (My sister managed their finances) and has done virtually none of the things he/they should have (will, solid financial/investment plan, etc.) and, many of the things they should not have (bought annuities, hopped in/out of investments, etc.). Fortunately, they were decent savers.
DETAILS:
- BIL is 60 yo, physically disabled (so unable to work), very financially risk averse and has a 28 yo son who's employed and (mostly) on his own
- ~$400-$600k invested/investable assets, depending on life insurance payouts (see details below)
- $80k (cash)
- $336K (tax deferred accounts)
-- $60k (sister's 403b/401a)
-- $240k (IRA currently in Allstate/Equitable indexed variable deferred annuity which is out of the surrender period)
-- $30k (IRA IRA currently in Allstate/Equitable indexed variable deferred annuity which is out of the surrender period
-- $6K (IRA in MMF)
- ~$200k (estimated life insurance payouts)
- ~$25k/yr SS (on my sister's account) beginning @ 67yo in 2029
- $TBD VA disability (he's currently applying, is a combat Vet and will likely get some amount of VA Service Connected Disability pay.)
- Expenses (still trying to get a more accurate estimate): $30-$40k/yr
GOING FORWARD: I want to help him through this period to get him on a firm footing and am willing to periodically give advice after that but, I prefer for him have a trusted financial advisor in the long term. My initial thoughts on a plan forward are below but, the situation is fluid (as he seems to find new files, accounts and details as we go). I'd very much like to hear E-R.org community suggestions, cautions, etc. The more specific, the better.
1. Use the $80 cash in the short term (find decent MMF and/or CDs for much of it)
2. Put the $200k taxable (from life insurance) into 30/70 AA using low/no cost MFs or ETFs
3. Put the tax deferred accounts into a single fund for simplicity (Wellesley or Target fund like VTTVX
SITUATION: My BIL is very unsophisticated financially (My sister managed their finances) and has done virtually none of the things he/they should have (will, solid financial/investment plan, etc.) and, many of the things they should not have (bought annuities, hopped in/out of investments, etc.). Fortunately, they were decent savers.
DETAILS:
- BIL is 60 yo, physically disabled (so unable to work), very financially risk averse and has a 28 yo son who's employed and (mostly) on his own
- ~$400-$600k invested/investable assets, depending on life insurance payouts (see details below)
- $80k (cash)
- $336K (tax deferred accounts)
-- $60k (sister's 403b/401a)
-- $240k (IRA currently in Allstate/Equitable indexed variable deferred annuity which is out of the surrender period)
-- $30k (IRA IRA currently in Allstate/Equitable indexed variable deferred annuity which is out of the surrender period
-- $6K (IRA in MMF)
- ~$200k (estimated life insurance payouts)
- ~$25k/yr SS (on my sister's account) beginning @ 67yo in 2029
- $TBD VA disability (he's currently applying, is a combat Vet and will likely get some amount of VA Service Connected Disability pay.)
- Expenses (still trying to get a more accurate estimate): $30-$40k/yr
GOING FORWARD: I want to help him through this period to get him on a firm footing and am willing to periodically give advice after that but, I prefer for him have a trusted financial advisor in the long term. My initial thoughts on a plan forward are below but, the situation is fluid (as he seems to find new files, accounts and details as we go). I'd very much like to hear E-R.org community suggestions, cautions, etc. The more specific, the better.
1. Use the $80 cash in the short term (find decent MMF and/or CDs for much of it)
2. Put the $200k taxable (from life insurance) into 30/70 AA using low/no cost MFs or ETFs
3. Put the tax deferred accounts into a single fund for simplicity (Wellesley or Target fund like VTTVX