tgotch
Recycles dryer sheets
- Joined
- Oct 2, 2007
- Messages
- 133
Hi,
Looking for help with in-laws finances.
A little back story:
FIL-80
MIL-76, Healthy
FIL had a massive stroke about a year ago, and is currently in a nursing home. Can't speak, or use left side of body. Prognosis unknown, but not great.
They have always held financial matters "close to the vest", but MIL recently started opening up about their finances. I am starting to get a handle on them, and have some questions.
Quick Breakdown:
Income
~$3000/mo. in pension and SS
~$2500/mo. farm rental income
~$1300/mo. in annuity
Expenses
~$6500/mo. for nursing home care
(Don't have her living expenses nailed down yet, but they have always lived pretty frugally).
Investments
~$27,000 Jackson National Annuity
~$190,000 in bank brokerage account (moderate fund mix)
~$14,000 in Penn Mutual Annuity
~$191,000 in Forethought Income 150+ Annuity
~$116,000 in Midland National flexible premium adjustable life insurance
~$1,400,000 in farm/land value
MIL knows very little about investing, nor about where money comes/goes. She pays the bills (writes checks, handles accounts), but that's about it.
My initial thoughts are to get her out of the annuities/insurances, and into some better investments (index funds - ~50/50 mix). Also simplify it for her.
Questions:
Can she cancel annuities?
What types of penalties will she incur by cancelling annuities?
I have never been a fan of annuities, but with her investing skill set, is this best for her?
She has been drawing money from the bank brokerage to pay for FIL nursing home expenses, is this best option?
What are some ways we can protect her assets into the future? (I have heard some horror stories about widows being fleeced of money in many different ways)
She is thinking of selling the house +5 acres of land, but continue renting the farm-able land for the near term. She would then downsize into a condo. Would it be best to pay cash, or finance the condo?
She has made an appointment to talk with a different financial advisor (distant relative. I'm afraid he will try to steer her towards his own commission-able products.
We have also talked to her about talking with an estate attorney, but she doesn't seem too interested.
Many, many more questions, but my wife and I are just getting started on this journey, and educating ourselves. Anything obvious I am missing?
Looking for help with in-laws finances.
A little back story:
FIL-80
MIL-76, Healthy
FIL had a massive stroke about a year ago, and is currently in a nursing home. Can't speak, or use left side of body. Prognosis unknown, but not great.
They have always held financial matters "close to the vest", but MIL recently started opening up about their finances. I am starting to get a handle on them, and have some questions.
Quick Breakdown:
Income
~$3000/mo. in pension and SS
~$2500/mo. farm rental income
~$1300/mo. in annuity
Expenses
~$6500/mo. for nursing home care
(Don't have her living expenses nailed down yet, but they have always lived pretty frugally).
Investments
~$27,000 Jackson National Annuity
~$190,000 in bank brokerage account (moderate fund mix)
~$14,000 in Penn Mutual Annuity
~$191,000 in Forethought Income 150+ Annuity
~$116,000 in Midland National flexible premium adjustable life insurance
~$1,400,000 in farm/land value
MIL knows very little about investing, nor about where money comes/goes. She pays the bills (writes checks, handles accounts), but that's about it.
My initial thoughts are to get her out of the annuities/insurances, and into some better investments (index funds - ~50/50 mix). Also simplify it for her.
Questions:
Can she cancel annuities?
What types of penalties will she incur by cancelling annuities?
I have never been a fan of annuities, but with her investing skill set, is this best for her?
She has been drawing money from the bank brokerage to pay for FIL nursing home expenses, is this best option?
What are some ways we can protect her assets into the future? (I have heard some horror stories about widows being fleeced of money in many different ways)
She is thinking of selling the house +5 acres of land, but continue renting the farm-able land for the near term. She would then downsize into a condo. Would it be best to pay cash, or finance the condo?
She has made an appointment to talk with a different financial advisor (distant relative. I'm afraid he will try to steer her towards his own commission-able products.
We have also talked to her about talking with an estate attorney, but she doesn't seem too interested.
Many, many more questions, but my wife and I are just getting started on this journey, and educating ourselves. Anything obvious I am missing?
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