Hoping to tap into the Boglehead Brain Trust yet again with another high class problem - maximizing wealth and minimizing a tight spot for an elderly relative who is trying to arrive down the road at 101, (like Taylor will in January)!
In a nutshell, things are ok financially right now and are serious but stable to improving health wise due to velvet glove care but we want to focus on how to position this relative to thrive in the next 5-7-10(?) years, in case the relative gets lucky (and after LTCI runs out). We already have things set for the absence of luck (prepaid end of life expenses etc).
Bank A: $271k in low yielding savings. Considering moving to a CD yielding over 4 percent.
Bank B: $266k of which 225k is in a one year CD at 5 percent.
Bank C: $155k of which $100k is in a 6 month CD at 4.9 percent.
Bank D: $25k in checking and savings combined.
Other income: $6800/mo (pension, SS, interest income, and business income)
LTCI: $4800-5800/mo, depending on the month. $146k and 2.5 years left on the policy.
RE: $1.2 mil, conservative estimate.
Home health aide expenses: $14000/mo
Other expenses: $3500/mo.
Debt: none.
Investments: none.
Life insurance/ annuities: none, except pension
Assets: car worth approx $25,000 (2019 RAV4)
A high end skilled nursing facility costs $18,000/mo in this relative’s ultra HCOL.
Should we focus first on getting that $271k into a high yielding CD or CD ladder? What should be their top 3 priorities right now? Getting into a skilled nursing facility? Liquidating the business? Getting a business manager? Starting to invest? Selling some real estate? Consolidating accounts? Exploring less expensive health aide options? Increasing health or cultural services? Relative already gets physical therapy twice a week. Selling or leasing the car (a neighbor is interested)? Getting an umbrella policy?
The ship has sailed on going the Medicaid route and it’s not desired. Leaving much for heirs or a charitable legacy is already provided for in the estate plan.
Thanks.
In a nutshell, things are ok financially right now and are serious but stable to improving health wise due to velvet glove care but we want to focus on how to position this relative to thrive in the next 5-7-10(?) years, in case the relative gets lucky (and after LTCI runs out). We already have things set for the absence of luck (prepaid end of life expenses etc).
Bank A: $271k in low yielding savings. Considering moving to a CD yielding over 4 percent.
Bank B: $266k of which 225k is in a one year CD at 5 percent.
Bank C: $155k of which $100k is in a 6 month CD at 4.9 percent.
Bank D: $25k in checking and savings combined.
Other income: $6800/mo (pension, SS, interest income, and business income)
LTCI: $4800-5800/mo, depending on the month. $146k and 2.5 years left on the policy.
RE: $1.2 mil, conservative estimate.
Home health aide expenses: $14000/mo
Other expenses: $3500/mo.
Debt: none.
Investments: none.
Life insurance/ annuities: none, except pension
Assets: car worth approx $25,000 (2019 RAV4)
A high end skilled nursing facility costs $18,000/mo in this relative’s ultra HCOL.
Should we focus first on getting that $271k into a high yielding CD or CD ladder? What should be their top 3 priorities right now? Getting into a skilled nursing facility? Liquidating the business? Getting a business manager? Starting to invest? Selling some real estate? Consolidating accounts? Exploring less expensive health aide options? Increasing health or cultural services? Relative already gets physical therapy twice a week. Selling or leasing the car (a neighbor is interested)? Getting an umbrella policy?
The ship has sailed on going the Medicaid route and it’s not desired. Leaving much for heirs or a charitable legacy is already provided for in the estate plan.
Thanks.
Statistics: Posted by AnnetteLouisan — Tue Nov 12, 2024 6:05 pm — Replies 11 — Views 856