"I completed the spread sheet with her SS income, pension income, expenses and heatlhcare costs. Her expenses surpass her income in years 7-8. "Ouch! I thought the original $1000/month expenses sounded unlikely, but this is decidedly unpleasant, even though I assume you are now being extra-conservative in your estimates. Conservative is good, though not if it forces us to make unwise plans to make up for our pessimism about expenses to try for high returns on savings/invesment."Clearly she needs to obtain a yield near 7-9%. The other alternative is for me to give her additional funds now to put into her savings (around another $50k-$100k) which would carry her nicely past 100 at the higher returns."If you actually can afford to help out, here's a thought. You (and your wife) can each give her 11000/year in gift money. Let's say you do that for the next 5 years ($110000 total), with the idea that if she dies before the money runs out, she leaves you what is left. If she doesn't ever have to break into the money, it actually becomes an investment plan for you, probably saving you on taxes. You might run it past the tax people to see if this is legal, but I don't see why not.
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