NotACat wrote: ↑Tue Jan 18, 2022 7:43 am
Posting on behalf of a family member.
- They have about $50k in stock/bond investments - unsure of allocations.
They have about $75k in cash from a home sale.
They will be receiving a $500k inheritance.
They are permanently disabled and unable to work and from that they receive monthly social security payments and they are on Medicaid.
They currently rent an apartment and would likely like to buy a home at some point. Realistically, we have considered trying to find a duplex or home with an in-law suite of some sort where they can handle a down payment and my spouse and I take on the mortgage.
I am familiar with the general timeline of typical boglehead investing of more bonds, less stock as you age and approach retirement, but I really don't have any idea how to allocate money here, since they are unlikely to ever work again.
Any suggestions or resources on how to handle this incoming inheritance, alongside other assets. Not sure what types of accounts it should be put into, how much to invest, how much in bonds, etc.
MediCARE is available at 24 months after the Disability Eligibility Date….which is not necessarily the first month that monthly SSDI was paid. And not the same as the First Disabled Date.
If they are on ssDi and not SSI, then the SSDI amount is their FRA amount…and will be paid from now until forever, with COLA adjustments the same as Old Age SS payments.. At their FRA age, the amount stays the same…it is just that the dollars come from a different GOVT account.
Having said all that….
Advice at this point is tough to give without knowing the income vs expense picture.
Can you provide a SWG at the income vs expense picture?
Also, not to be morose, but if life expectancy is forecasted to be shortened, then the 4% SWR makes no sense…and that will also play into it. Life Expectancy tables with Condition “X” are usually available from the National “X” Societies and from research hospitals.
Sorry to hear about this.