In Laws

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Oct 19, 2009 9:15 am

So I have a situation I was wondering if I can get input on (since I only know enough about annuities that allowed me to pass the 7).

 
This weekend my brother-in-law (elder brother of my wife) came up for a visit, and the topic of "What the hell are we going to do with Mom" came up.  Basically the situation is this:
 
She is in her 50's and has a husband (my wife's stepfather) who is also in his 50's (early 50's).  He is a general contractor who has had 2 heart attacks in the last 5 years.  From what we can determine, she has no substantial savings and he has an IRA of around $50,000.  My knowledge of how much he has is limited, but I'm fairly confident that it won't be enough to provide for my MIL in the event of his death.
 
Are there any viable insurance options to help her when he passes away?  I'm about 99% certain that she will have to either move in with us (worst case scenerio), move in with my brother in law (not a bad option to me, but it is to him), or become homeless.
 
 
Oct 19, 2009 9:37 am
iceco1d:

WB,

 
Not enough info for anyone to really assist you.  Does your MIL work?  Does her husband still work full time as a contractor? 
 
If so - in your 50s with 50K saved is pathetic.  You need to have a conversation with them about putting away some serious $$$ for savings (and if they need to give up some frills to do it, then that's what has to be done). 
 
As for insurance products - the most income per dollar she's going to get is probably going to come from a SPIA.  Other questions to consider would be:  Do you want a period certain?  COLA rider? 
 
Other factors:  Do they have life insurance?  They are already behind the 8 ball it seems; do you want final expenses to dig the hole deeper?  If they don't have insurance, is that even an option at this point? 
 
How about where they live now.  Do they own their own home (or does the bank)?  Maybe a reverse mortgage (I hate these, but sometimes you gotta do what you gotta do). 
 
All kinds of info missing man.  First thing you need to do (IMO) is sit them down and get ALL of the details about their finances. 
 
All good questions.  The MIL doesn't work - and hasn't since probably the late 80's.  I know before the real estate crash, he was making decent money as a contractor (I would estimate 80 -120K a year).  It seems that they would have to have their money going somewhere.  Their house (bank owned) is modest, and they never go out - so it seems that they should have left over money.  The step-father did work for Dodge for 20 years - but I have no idea what kind of retirement plan he had with them.
 
Complicating this is that the MIL doesn't want to discuss anything, and our relationship with the step-father is severely strained right now.  But yes, a fact-finding mission is in order, but right now I'm thinking in worst case scenerios.
 
To compliacte matters, my wife's grandmother lives with them too.  So potential, if the stepfather drops dead tomorrow, I can have 4 generations living in my house (grandmother, mother, wife, daughter).  That would be HELL.
Oct 19, 2009 9:48 am
Wet_Blanket:
iceco1d:

WB,



Not enough info for anyone to really assist you. Does your MIL work? Does her husband still work full time as a contractor?



If so - in your 50s with 50K saved is pathetic. You need to have a conversation with them about putting away some serious $$$ for savings (and if they need to give up some frills to do it, then that's what has to be done).



As for insurance products - the most income per dollar she's going to get is probably going to come from a SPIA. Other questions to consider would be: Do you want a period certain? COLA rider?



Other factors: Do they have life insurance? They are already behind the 8 ball it seems; do you want final expenses to dig the hole deeper? If they don't have insurance, is that even an option at this point?



How about where they live now. Do they own their own home (or does the bank)? Maybe a reverse mortgage (I hate these, but sometimes you gotta do what you gotta do).



All kinds of info missing man. First thing you need to do (IMO) is sit them down and get ALL of the details about their finances.


All good questions. The MIL doesn't work - and hasn't since probably the late 80's. I know before the real estate crash, he was making decent money as a contractor (I would estimate 80 -120K a year). It seems that they would have to have their money going somewhere. Their house (bank owned) is modest, and they never go out - so it seems that they should have left over money. The step-father did work for Dodge for 20 years - but I have no idea what kind of retirement plan he had with them.



Complicating this is that the MIL doesn't want to discuss anything, and our relationship with the step-father is severely strained right now. But yes, a fact-finding mission is in order, but right now I'm thinking in worst case scenerios.



To compliacte matters, my wife's grandmother lives with them too. So potential, if the stepfather drops dead tomorrow, I can have 4 generations living in my house (grandmother, mother, wife, daughter). That would be HELL.





Seems like he should be making more as a GC, but maybe it's different. Are you sure he doesn't already have LI in place?



Also, she should start training for a new career (or a career) that she can do into her 70's. Insurance sales assistant comes to mind.



The other thing is to talk about how you as a family can help your wife's stepfather maintain his health. Might help repair the relationship and get things moving in the right direction.



Have him start putting away an a$$load of money and get that old 401k information.



I feel for you brother. That sucks.

Oct 19, 2009 10:29 am

Yeah I would find out about the Dodge retirement plan(if he was union he could have a pension coming).

Check life insurance options(might be worth the insane cost if you can get $500K or so)



ICE i agree, but i am an asshole too.



Oct 19, 2009 11:40 am

His earnings were my best guess - but I'm sure they have declined in the last two years.  I do also know that his medical insurance / monthly prescriptions are insane.  The step father is a ahole, so I wouldn't mind doing that - but it isn't exaclty my place unless she will end up living with us.

 
I do know that if I were his FA, if I was a FA, I would have fired him as a client a long time ago.
 
All valid concerns, and I now have a list of things to bring up with the brother in law and wife.  Thanks.
 
Oct 19, 2009 11:41 am

And what does SPIA stand for?

Oct 19, 2009 11:47 am

Single Premium Immediate Annuity.

Nov 30, 2009 2:42 pm

Status Update:  Still haven't gotten anymore answers, however he had his 3rd heart attack today.  Hopefully this will be the fire under their butt to take it seriously.  Right now my wife and BIL are playing "hot potato" over who will be stuck with her.

Nov 30, 2009 4:32 pm

Not sure who mentioned life insurance, but my guess is that the $500K policy that was mentioned would cost him about.....$500K.  Three heart attacks in the last 5 years?  No chance.


Just line up all the income streams....SS, pension, etc.  See what it comes out to.  It will be a big shortfall.  Start figuring out what the shortfall is and how she can make it up.  "You need to work and make X per year, put away Y per year, etc."  And they also need to identify exactly where the income is going.  Do they need to downsize their lifestyle?  Sell the house and rent?  Just sharpen the pencil and do some old-fashioned financial planning/budgeting.