UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: brewmaster15 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Dear Old Mom Date: 12/30/1999 1:33 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My mother is 59 years old, and has a portfolio worth a little over $300,000 in taxable investmets, and around $60,000 in IRA's.

She is able to work, and her income consists of earnings plus alimony. Until now, she has been able to meet her monthly budget requirements with her income.

She has begun to help fund the care for her 90+ year old Aunt. Let's assume that she will need to withdraw approximately $3150 per month for the next 5 years to cover this additional amount plus any increases in her own living costs.

All of these accounts are managed by a full service broker. The taxable assets are currently in the Palley Needleman Equity Lg. cap Value fund, and the Oppenheimer Capital Balanced fund.

My goal is to maximize growth of the assets, and allow the liquidity ("income") necessary to pay the addtional bills she will need to pay.

How could she accomplish this? Any suggestions would be most appreciated!

Also, I encouraged her to defer taking social security payments until she turns 67 if possible. She is in relatively good health, and may be able to work until then.

Last, when do Medicare and Medicaide kick in, and are they means tested, etc....?
Print the post Back To Top
Author: 123MIC One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17086 of 75335
Subject: Re: Dear Old Mom Date: 12/30/1999 6:14 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Brewmaster 15, I am a 70 year old Mom & Grandma with a little less than your mom appears to have. In my opinion: 1. Your goals don't matter,only mom's goals matter here, 2. If you care, then take mom to meet 3 t 5 full service brokers. Tell her to listen for the one who suggests, long term care insurance for her (you should get yours at age 40, too) second, he should suggest a Variable Annuity with automatic payout for auntie, Maybe 90+ is too old so Mom should get one that grows tax deferred except for what she takes out. The VA should have a history of good balanced funds that have paid 10-12% This year about 20%. Mom needs to keep control of the VA and make you and your siblings, etc. the beneficiaries.
Forget deferring SS, it will change before she is elegible. Did you know that even when you are collecting on SS you may still work and increase your checks. SS has an 800 pnone number listed in the directory and they are wonderful answering your questions from 7am to 7pm. Mom and you should get a printout of your witholding and potential benefits NOW.
I think the # is 1-800-772-1213. But you better check that with the directory.
Medicare and Medical Supplement insurances are cost constraining govt programs kicking in at age 65 or when you take your SS. Medicaid is a Lyndon Johnson era welfare program that says to middle class folks, give your money to your kids and in 3 years go on welfare.
Auntie and Mom and you could easily live to be 100+ Happy New Year.


Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17101 of 75335
Subject: Re: Dear Old Mom Date: 12/30/1999 11:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Brewmaster15, and welcome. You wrote:

<<My mother is 59 years old, and has a portfolio worth a little over $300,000 in taxable investmets, and around $60,000 in IRA's.

She is able to work, and her income consists of earnings plus alimony. Until now, she has been able to meet her monthly budget requirements with her income.

She has begun to help fund the care for her 90+ year old Aunt. Let's assume that she will need to withdraw approximately $3150 per month for the next 5 years to cover this additional amount plus any increases in her own living costs.

All of these accounts are managed by a full service broker. The taxable assets are currently in the Palley Needleman Equity Lg. cap Value fund, and the Oppenheimer Capital Balanced fund.

My goal is to maximize growth of the assets, and allow the liquidity ("income") necessary to pay the addtional bills she will need to pay.

How could she accomplish this?>>


With absolutely no growth in assets over the next five years, to sustain the income needed per month from a $360K portfolio your mother will need to have an average annual return of 10.6%. That's certainly possible in equities, but could prove difficult if the market heads south. Asking for growth on that amount as well means the market would have to sustain its present hectic pace. And the use of a full service broker with that agency's attendant fees will make that task much more difficult. She and you definitely have a hard task ahead. To do what she wants to do while preserving her capital means she must be willing to accept a high exposure -- indeed close to 100% -- in the stock market. IMHO she needs to understand that.

<<Also, I encouraged her to defer taking social security payments until she turns 67 if possible. She is in relatively good health, and may be able to work until then.>>

Income will be important to her, and she can earn quite a bit after age 65 before she must forfeit any of her Social Security receipts. In 2005 when she reaches age 65, she can earn up to $30K before she must give up any of her check. Even then she must forfeit only $1 in Social Security for every $3 above that amount. Additionally, she can possibly increase her future benefits through working. Thus, before she decides NOT to take payments at that age she should look at the issue closely.

<<Last, when do Medicare and Medicaide kick in, and are they means tested, etc....?>>

Medicare is available at age 65, but may be delayed if she is working and covered by her employer. As of this date it not not means tested. Medicaid is a welfare program based on need. That's available at virtually any age if a person meets the lack of personal resources criteria. Rules vary slightly from state to state for Medicaid.

Regards..Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement