UnThreaded | Threaded | Whole Thread (83) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35345  
Subject: Re: Plan For Mom Date: 6/12/2003 1:48 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
"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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (83) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement