Parents' finances are thin and I am now in charge - Help!

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HipCoyote
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Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

Dear Bogleheads,

I realize this may be a heavy lift to look at and comment on. Any guidance will be appreciated.

This is a hybrid of a portfolio / financial matters question. I need your collective guidance on asset allocation of funds in my parents' meager portfolio, on what to do with a small annuity and what to do with three whole life insurance policies. I am now in charge of all financial matters. I have a POA for both parents.

Mother, age 83 has mid to late-stage Alzheimer's. Recently placed in a residential memory care facility. Cost is $6500 per month / $78,000 per year. No formal medical estimation of life expectancy, but my layman's estimate is 3 years.

Stepfather, age 82, lives at home. He is in relatively good physical shape. However, he does not now, nor has he ever, had the capacity to understand even the most basic financial matters. (Example, before I got involved in their finances, he told me he had a pension...he does not. It is a very small IRA.) He relinquished all financial decisions to me via a POA. He is a Vietnam era vet (which may be important for benefits.)

This is a second marriage. My mother kept her brokerage / taxable account separate from Dad. Again, this may be important for vet benefits for Dad due to income thresholds.

His SS Income approx: $18,500

Her SS Income approx: $17,400

Emergency funds: They have about 4 months of expenses in their three checking accounts. Just this last week, took steps to combine all checking into one account and put most bills on auto-pay so I can track expenditures.

Debt: Parents' home is paid for. Home value is $270,000. Cash outlay of $6500 per month on memory care. No other debt. They have excellent medical insurance. They do not have long term care insurance.

Tax Filing Status: Married Filing Jointly

Tax Rate: 0% Federal, 0% State. The 0% tax rates are due to low SSI and fact that Mom had in-home care for a year or so before going into the residential care.
State of Residence: Arizona

Age: See above

Desired Asset allocation: This is the grand prize question.

Desired International allocation: xx% of stocks 0%

Portfolio Size $600,000

Current retirement assets

HIS IRA

9.74% AMERICAN U S GOVT MONEY MARKET CL A AFAXX 0.24%
3.38% Bond Fund of America Cl A ABNDX 0.59%
0.15% Cash
11.09% PIMCO Income Cl A PONAX 0.90%

Her Variable Annuity

8.04% American Funds Grown - Income Fund Class 1 0.28%
(Cash value of $48,000. Unknown fund symbol due to it being an insurance mutual fund.
Cost basis is $23,500

Her Taxable Account

15.49% AMERICAN FUNDAMENTAL INVESTORS CLASS A ANCFX 0.61%
38.05% AMERICAN GROWTH FUND OF AMERICA A AGTHX 0.60%
7.93% AQUILA TAX FREE COLORADO CL A COTFX 0.75%
1.23% CIGNA CORP NEW COM CI
0.41% GE HEALTHCARE TECHNOLOGIES INC GEHC
1.61% GENERAL ELECTRIC CO COM NEW GE
1.26% Cash
1.63% NORTHERN FIXED INCOME FUND NOFIX 0.45%


All accounts are at LPL. At this moment, I do not know what funds are available. But, if funds are to go into cash, then minimally AFAXX or I would switch the accounts to Fidelity where I keep my accounts.)

Whole Life Policies There are three whole life policies.
Policy 1 on my mother. Death benefit is approx $67,000. Cash value is approx $45,000. Monthly payment is $65
Policy 2 on my (now adult) son which Mom bought years ago. Cash value is approx $6500
Policy 3 on my (now adult) daughter which Mom bought years ago. Cash value is approx $5000.
Neither adult child is going to keep these policies.

Questions
1- Parents are in a zero cap gain tax situation. Should I just cash out as much as I can and keep funds in more liquid assets given the time lines?
2- Note that mom has a Colorado Tax Free fund and lives in Arizona. (One of many mistakes made by her and her so called advisor. Advisor also had Dad in a tax free municipal bond fund in his IRA which I corrected. Advisor has since passed away. The fund was inherited fund which should have been sold when mom received it. Sell now as well?
2- Cash out kids' whole life policies?
3- Cash out annuity given the expenses on top of the er for the fund and potential volatility?
4. Any ideas on vet benefits
5. Other words of wisdom?

Thank you and very best regards
tunafish
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Re: Parents' finances are thin and I am now in charge - Help!

Post by tunafish »

If the kids don't need their policy values for college, I would cash them in and throw the money into your parents' assets. I would also ask your Mom's doctor what her life expectancy is; You are just guessing.
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

tunafish wrote: Tue Jun 06, 2023 4:34 pm If the kids don't need their policy values for college, I would cash them in and throw the money into your parents' assets. I would also ask your Mom's doctor what her life expectancy is; You are just guessing.
Thanks on both. Kids are all grown up and gone.

I know I am guessing...but it is a somewhat educated guess based on quite a bit of study. But you are right, for sure. I am not qualified to make such a determination. I have asked this of the med folks and they are reluctant to speculate which has caused me a bit of planning challenges. I will press further on this. Thanks for the nudge.

Best regards.
HeelaMonster
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HeelaMonster »

Agree on cashing out whole life policies and adding cash to their portfolio.

I am not familiar with LPL, but I do recognize the general pattern of American funds and individual stocks (ANY individual stocks....) from recent efforts to extract elderly relatives from the clutches of Edward Jones. If LPL is anything like EJ, your parents are likely paying fees and commissions on top of hefty expense ratios. It was a straightforward process to move everything over to Vanguard (assume Fidelity would be similar) and take that out of hands of advisor cum salesman. Once there, we have sold off nearly all funds and stocks, harvesting some losses against smallish gains, and they are now in more stable positions appropriate for their age and health circumstances.

The medical folks are being appropriately circumspect in putting a timeline on progression of Alzheimers. Unless there is something specific about your mother's condition (e.g., other diseases), the most they could probably offer might be population-based statistics across huge groups. For example, National Life Tables for the UK show life expectancy of 9.6 years for women age 80-89, which is shortened to 4.4 years for women in same age group with dementia. But beyond those generalized stats....?

Good luck with your challenges! They are lucky to have your help.
Last edited by HeelaMonster on Tue Jun 06, 2023 5:11 pm, edited 4 times in total.
barnaclebob
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Re: Parents' finances are thin and I am now in charge - Help!

Post by barnaclebob »

I dont think things are as dire as you make it seem. 600k plus the house value can make up the cash flow for awhile, likely the rest of their lives.

I'd put it at 70/30 to 60/40 bonds/stocks. They dont want to be caught by a major recession in the next couple years.
cranberrycrash
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Re: Parents' finances are thin and I am now in charge - Help!

Post by cranberrycrash »

I will leave it to others to advise on the finances.

But I strongly recommend you get in touch with an Elder care attorney in your area. You need someone experienced with dementia and long term care needs to help you navigate this. Some people live with dementia a very long time, others do not. You need to navigate the safest way to spend down funds so that your father is left with as much of his savings as possible plus the house, if your Mom passes before him. Don't make a mistake - like sell the house - when it is the one asset that your father can protect if their funds get so low his wife qualifies for Medicaid. If you don't know what that means, talk with the social worker at the Nursing Home and ask around for elder care attorney referrals.

I would absolutely make an appointment at the VA with their representatives to make sure your Dad is getting all the benefits he deserves. It is never too late. I helped a 92 year veteran get his VA benefits. They covered his hearing aids (free!), all of the medical equipment he needed (free wheelchair/walkers/bathroom equipment etc..), essentially free medications, subsidized caregivers coming to his home, and even a great VA Nursing facility he could live in, if he ever needed it.

You are a good son to be helping your family this way. Good luck.
robphoto
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Re: Parents' finances are thin and I am now in charge - Help!

Post by robphoto »

Definitely talk to the VA, there are many benefits that may apply.

In many cases, also for the spouse of the veteran, like this Aid and Attendance benefit: https://www.va.gov/pension/aid-attendance-housebound/
JayDee37
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Re: Parents' finances are thin and I am now in charge - Help!

Post by JayDee37 »

Kudos to you for stepping up to help your folks--it is so stressful to have to take over and manage health and financial matters for one's elderly parents. I have not had to do this (yet), but I've been watching my fiancé deal with it over the past couple of years and it seems really tough.

I am not familiar with the specifics of each individual investment listed, but as others have stated it seems to me that your parents are not in terrible financial shape given their ages. There is the $600K portfolio, plus the $35,900 in SS income, plus whatever income stream is provided by your mom's annuity. If you: 1) transfer all of their invested assets to a brokerage more in line with the Boglehead way of thinking (Vanguard, Fidelity, and Schwab are the three I see mentioned most often); 2) shift to a Boglehead-style two-fund or three-fund portfolio with a reasonable AA (anything between 30/70 and 60/40?); and 3) cash out the life insurance policies and add those to the portfolio (you could also do this with the annuity--you may need to provide the board with more detail to determine the best course of action for that piece), it seems possible that their resources can support them for the remainder of their lives.

If your mom's expenses are currently $78K/year, SS covers $17,400, leaving $60,600 to be covered by other funding streams. That's a fairly hefty withdrawal rate from the portfolio, but the time horizon is probably less than 10 years given your mom's medical situation.

What are your stepdad's annual expenses? That is a critical piece of information to know. He should be able to get medical care through the VA and the house is paid for, so those two big-ticket items are taken care of. What does he spend on property taxes, home insurance, utilities, food, hobbies, transportation, personal care, etc.? If he is a frugal guy and lives in an LCOL area he may not need to draw down tons of additional money beyond his monthly SS payment.

There may not be a large inheritance left once both of them pass, but it is not entirely unreasonable to think that their resources will be sufficient to meet their needs for the next decade.

Good luck!
Tell me, what is it you plan to do with your one wild and precious life? | ~Mary Oliver
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Duckie
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Re: Parents' finances are thin and I am now in charge - Help!

Post by Duckie »

HipCoyote wrote: Tue Jun 06, 2023 4:28 pm HIS IRA

9.74% AMERICAN U S GOVT MONEY MARKET CL A AFAXX 0.24%
3.38% Bond Fund of America Cl A ABNDX 0.59%
0.15% Cash
11.09% PIMCO Income Cl A PONAX 0.90%
Liquidate this and roll the cash to a new TIRA at Fidelity and put it all in (FXNAX) Fidelity U.S. Bond Index Fund (0.025%).
Her Variable Annuity

8.04% American Funds Grown - Income Fund Class 1 0.28%
(Cash value of $48,000. Unknown fund symbol due to it being an insurance mutual fund.
Cost basis is $23,500
I know nothing about annuities but can this be moved to Fidelity?
Her Taxable Account

15.49% AMERICAN FUNDAMENTAL INVESTORS CLASS A ANCFX 0.61%
38.05% AMERICAN GROWTH FUND OF AMERICA A AGTHX 0.60%
7.93% AQUILA TAX FREE COLORADO CL A COTFX 0.75%
1.23% CIGNA CORP NEW COM CI
0.41% GE HEALTHCARE TECHNOLOGIES INC GEHC
1.61% GENERAL ELECTRIC CO COM NEW GE
1.26% Cash
1.63% NORTHERN FIXED INCOME FUND NOFIX 0.45%
The four mutual funds have high expense ratios. Turn OFF all automatic dividend reinvestment at LPL. Any dividends should be sent to cash. Then find out the unrealized gains/losses for every asset, so you'll have an idea about the tax hit. Let us know what they are.

You can transfer these funds/stocks "in kind" to Fidelity. You may choose to sell before transferring or wait. If any are transferred make sure to turn OFF automatic dividend reinvestment at Fidelity. There are transactions fees to buy these at Fidelity but I think transferring does not incur a fee. Maybe ask first. At Fidelity the best options in taxable are:
  • (FSKAX) Fidelity Total Market Index Fund (0.015%) for US stocks
  • (FXNAX) Fidelity U.S. Bond Index Fund (0.025%) for taxable US bonds
  • (MUB) iShares National Muni Bond ETF (0.07%) for tax-exempt bonds
  • (VTEB) Vanguard Tax-Exempt Bond ETF (0.05%) for tax-exempt bonds
Whether it is better to hold taxable or tax-exempt bonds in a taxable account depends on the tax bracket.
Whole Life Policies There are three whole life policies.
Policy 1 on my mother. Death benefit is approx $67,000. Cash value is approx $45,000. Monthly payment is $65
Policy 2 on my (now adult) son which Mom bought years ago. Cash value is approx $6500
Policy 3 on my (now adult) daughter which Mom bought years ago. Cash value is approx $5000.
Neither adult child is going to keep these policies.
Definitely liquidate the two small policies to add to your mother's assets. Possibly liquidate the first one. Who is the beneficiary on Policy 1?
Parents are in a zero cap gain tax situation. Should I just cash out as much as I can and keep funds in more liquid assets given the time lines?
Yes. In taxable sell everything with a loss, then sell enough with a gain to get back to $0, and then sell more as long as you're willing to pay the taxes.
Note that mom has a Colorado Tax Free fund and lives in Arizona. (One of many mistakes made by her and her so called advisor. Advisor also had Dad in a tax free municipal bond fund in his IRA which I corrected. Advisor has since passed away. The fund was inherited fund which should have been sold when mom received it. Sell now as well?
It will depend on taxes, but probably sell.
Cash out kids' whole life policies?
Yes.
Cash out annuity given the expenses on top of the er for the fund and potential volatility?
The cash value is more than the basis. In an annuity will you have to pay taxes on the gains?
Any ideas on vet benefits
VA Benefits for Elderly Veterans
Raycpact
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Re: Parents' finances are thin and I am now in charge - Help!

Post by Raycpact »

1. Match IRA withdrawal to medical deductions or Roth conversions (stocks get step up, IRA doesn't)
2 . Consuder prepaid funeral insurance swap for life policy
3, Plam for possible Medicaid to protect assets
4. Assisted living for father to delay possible nursing home
5. If not assisted living, reverse mortgage for flexible source of funds to avoid cap gains and spread out ira withdrawal.
6. Verify POA will be honored everywhere
7. Final wishes for funeral
HomeStretch
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HomeStretch »

The LPL holdings have higher ERs than necessary for your parents’ portfolio. Consider moving their accounts to Fidelity because your accounts are there, lower investment costs and Fidelity is POA friendly. Make sure their bank is POA friendly too.

Get their passwords for their SSA, Medicare, health insurers and IRS online accounts as you will need them as their agent. Set yourself up in their Medicare and health insurer’s online accounts as an Authorized Representative so you can speak with them on behalf of your parents, if necessary.

What are the combined net annual expenses for your parents? How many years of net expenses will the $600k fund?

+1 to consulting with an elder law attorney asap. With your mom having Alzheimer’s and a portfolio that will probably cover only 5-7 years of expenses, your parents likely need to do some estate document updates and some what-if planning for Medicaid LTC to protect the well spouse and in case the funds run out for your mom’s care. Start keeping electronic files of all account statements, credit card bills, tax returns, etc. as Medicaid, if needed, will require 5 years of documents for their lookback review.

Absolutely meet with a veteran’s group that can help you with VA Aide & Attendance if your stepfather is eligible. It can take a year to be approved retroactively for benefits. If approved, it will pay for home healthcare such as aides for your step father. The benefit may pass to your mother if widowed which can be helpful because of her care requirements/cost.

Yes to cashing in the whole life policies on your kids.

Capital preservation of their portfolio is the most important thing. I suggest an asset allocation of 30/70 (equity/fixed income).
Last edited by HomeStretch on Tue Jun 06, 2023 7:10 pm, edited 1 time in total.
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Watty
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Re: Parents' finances are thin and I am now in charge - Help!

Post by Watty »

Parents' finances are thin and I am now in charge - Help!


Take a deep breath and slowly let it out.

They have a net worth of $870K and about $36K a year in Social Security income.

They have plenty of money.

There are just a gazillion details that you will need to deal with but other than making sure that your mom has good care and that the bills get paid I nothing I saw jumped out at me as being something urgent.

Someone already suggested that you get an lawyer who specializes in elder law to look at your situation and to see what they suggest. That would be good to do.
HipCoyote wrote: Tue Jun 06, 2023 4:28 pm 1- Parents are in a zero cap gain tax situation. Should I just cash out as much as I can and keep funds in more liquid assets given the time lines?
Selling with 0% federal capital gains makes sense but you need to have someone do dummy tax returns to see the impact on their state taxes and also if the capital gains might make more of their Social Security taxable. A lot of the expenses to take care of your mom may be deductible so be sure to include that in your calculation.

If there is extra cash then buying something like a ladder of CD to cover your mom's care expenses for 3 to 5 years might make sense so that you know that will be taken care of and you can relax some.
HipCoyote wrote: Tue Jun 06, 2023 4:28 pm 2- Note that mom has a Colorado Tax Free fund and lives in Arizona. (One of many mistakes made by her and her so called advisor. Advisor also had Dad in a tax free municipal bond fund in his IRA which I corrected. Advisor has since passed away. The fund was inherited fund which should have been sold when mom received it. Sell now as well?
Before you sell be sure to check to see if there is any capital gain or loss since that impact your choice.
HipCoyote wrote: Tue Jun 06, 2023 4:28 pm 2- Cash out kids' whole life policies?
The amounts are small so I would put that on the back burner since there are more important things to focus on first.
HipCoyote wrote: Tue Jun 06, 2023 4:28 pm 3- Cash out annuity given the expenses on top of the er for the fund and potential volatility?
Annuities are usually a bad choice to buy but once you own one the decision is much more complex since most of the damage is done and in some cases they can be worth keeping. Sort of like the saying, "A broken clock is right twice a day" sometimes and annuity can turn out OK. It would be good to research this more then decide what to do. I do not know a lot about annuities but I think there is something called an "inforce illustration" that you can ask for. If you post those details with something "What to do with mom's annuity?" in the title you will likely get responses from people that know more about annuities.
exodusNH
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Re: Parents' finances are thin and I am now in charge - Help!

Post by exodusNH »

HipCoyote wrote: Tue Jun 06, 2023 4:28 pm Whole Life Policies There are three whole life policies.
Policy 1 on my mother. Death benefit is approx $67,000. Cash value is approx $45,000. Monthly payment is $65
You should ask for an in force illustration for the policy. Assuming your mother is about the same age as your step father and she has dementia, her life expectancy may make keeping this policy in place the most sensible thing to do. The death benefit will be tax-free vs cashing it in, where the gain will be taxable at ordinary income rates. The illustration will show you what's going on.
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

cranberrycrash wrote: Tue Jun 06, 2023 5:38 pm I will leave it to others to advise on the finances.

But I strongly recommend you get in touch with an Elder care attorney in your area. You need someone experienced with dementia and long term care needs to help you navigate this. Some people live with dementia a very long time, others do not. You need to navigate the safest way to spend down funds so that your father is left with as much of his savings as possible plus the house, if your Mom passes before him. Don't make a mistake - like sell the house - when it is the one asset that your father can protect if their funds get so low his wife qualifies for Medicaid. If you don't know what that means, talk with the social worker at the Nursing Home and ask around for elder care attorney referrals.
Excellent advice. I will start searching for an attorney now.
I would absolutely make an appointment at the VA with their representatives to make sure your Dad is getting all the benefits he deserves. It is never too late. I helped a 92 year veteran get his VA benefits. They covered his hearing aids (free!), all of the medical equipment he needed (free wheelchair/walkers/bathroom equipment etc..), essentially free medications, subsidized caregivers coming to his home, and even a great VA Nursing facility he could live in, if he ever needed it.
Will do. Thanks
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

Watty wrote: Tue Jun 06, 2023 7:09 pm
There are just a gazillion details that you will need to deal with but other than making sure that your mom has good care and that the bills get paid I nothing I saw jumped out at me as being something urgent.
Fortunately my wife and I did quite a bit of "front-loading" on research of memory care places. Things in that regard are going very smoothly. Excellent in-residence medical care, meds all working well.
Someone already suggested that you get an lawyer who specializes in elder law to look at your situation and to see what they suggest. That would be good to do.
Now top of the list.
Selling with 0% federal capital gains makes sense but you need to have someone do dummy tax returns to see the impact on their state taxes and also if the capital gains might make more of their Social Security taxable. A lot of the expenses to take care of your mom may be deductible so be sure to include that in your calculation.

If there is extra cash then buying something like a ladder of CD to cover your mom's care expenses for 3 to 5 years might make sense so that you know that will be taken care of and you can relax some.
We will be doing a few dummy tax retruns to make sure that this is all taken care of.
The amounts are small so I would put that on the back burner since there are more important things to focus on first. [/quote] I have the docs right here so it would take very little time. And, I previously made sure that my POA is accepted by their insurance company. I am happy to say that all financial institutions, insurance companies, banks, annuity company, tax preparer are all set up with POA.
HipCoyote wrote: Tue Jun 06, 2023 4:28 pm 3- Cash out annuity given the expenses on top of the er for the fund and potential volatility?
Annuities are usually a bad choice to buy but once you own one the decision is much more complex since most of the damage is done and in some cases they can be worth keeping. Sort of like the saying, "A broken clock is right twice a day" sometimes and annuity can turn out OK. It would be good to research this more then decide what to do. I do not know a lot about annuities but I think there is something called an "inforce illustration" that you can ask for. If you post those details with something "What to do with mom's annuity?" in the title you will likely get responses from people that know more about annuities.
I will order the in-force illustration asap. Great suggestion.
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dogagility
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Re: Parents' finances are thin and I am now in charge - Help!

Post by dogagility »

I believe LPL charges a significant AUM fee in addition to the high cost funds. I'd move these monies to Fidelity.
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HipCoyote
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Post by HipCoyote »

[quote}Agree on cashing out whole life policies and adding cash to their portfolio. {/quote] I am leaning this way. I have the paperwork in hand so it is no bother. As someone else said, if it took up time, at this point, it would not be worth it so I could focus on other stuff.
I am not familiar with LPL, but I do recognize the general pattern of American funds and individual stocks (ANY individual stocks....) from recent efforts to extract elderly relatives from the clutches of Edward Jones. If LPL is anything like EJ, your parents are likely paying fees and commissions on top of hefty expense ratios. It was a straightforward process to move everything over to Vanguard (assume Fidelity would be similar) and take that out of hands of advisor cum salesman. Once there, we have sold off nearly all funds and stocks, harvesting some losses against smallish gains, and they are now in more stable positions appropriate for their age and health circumstances.
Fortunately, LPL is not charging an AUM fee. I am doing this on my own and they are just the custodian. There is an advisor there who does do some minor stuff for me once in a while. I totally get the E Jones reference.
The medical folks are being appropriately circumspect in putting a timeline on progression of Alzheimers. Unless there is something specific about your mother's condition (e.g., other diseases), the most they could probably offer might be population-based statistics across huge groups. For example, National Life Tables for the UK show life expectancy of 9.6 years for women age 80-89, which is shortened to 4.4 years for women in same age group with dementia. But beyond those generalized stats....?
This is actually very helpful. And yes, the med people are circumspect.
Good luck with your challenges! They are lucky to have your help.
Thanks. Its an honor to help them.
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

dogagility wrote: Tue Jun 06, 2023 8:06 pm I believe LPL charges a significant AUM fee in addition to the high cost funds. I'd move these monies to Fidelity.
They are just the custodian, so no fees other than a yearly admin of about $125 or something.
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

What are your stepdad's annual expenses? That is a critical piece of information to know. He should be able to get medical care through the VA and the house is paid for, so those two big-ticket items are taken care of. What does he spend on property taxes, home insurance, utilities, food, hobbies, transportation, personal care, etc.? If he is a frugal guy and lives in an LCOL area he may not need to draw down tons of additional money beyond his monthly SS payment.
He's a pretty frugal guy. Minimal expenses. Prop tax of less than $1000. Home and auto insurance are the biggies at this point. Utilities at around $250 a month.
There may not be a large inheritance left once both of them pass, but it is not entirely unreasonable to think that their resources will be sufficient to meet their needs for the next decade.
A few years ago, I did insist my mom and Dad update all beneficiary and POD forms. I asked that they just leave me out of it and give their grand-kids what ever may remain. This way I have no conflicts...real or perceived.
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Re: Parents' finances are thin and I am now in charge - Help!

Post by Stinky »

On the insurance policies -
—- Cash out the two life insurance policies on the kids, and reinvest the proceeds
—- Consider asking the insurance company to change the status to “paid up” on moms life insurance policy. This would reduce the monthly cash outlay, and retain the death benefit, which may be valuable given the Alzheimer’s diagnosis.
—- Surrender the annuity, which will probably save $1,000 per year or more in fees
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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HipCoyote
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Re: Parents' finances are thin and I am now in charge - Help!

Post by HipCoyote »

Stinky wrote: Tue Jun 06, 2023 8:43 pm On the insurance policies -
—- Cash out the two life insurance policies on the kids, and reinvest the proceeds
—- Consider asking the insurance company to change the status to “paid up” on moms life insurance policy. This would reduce the monthly cash outlay, and retain the death benefit, which may be valuable given the Alzheimer’s diagnosis.
—- Surrender the annuity, which will probably save $1,000 per year or more in fees
Excellent advice...thank you.
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