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Offline JR

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Investing for income after home sale?
« on: August 25, 2018, 01:16:42 AM »
Well, as many of you know I am about to place mom in an assisted living facility. Issue is it costs more than she makes and I can make up. Monthly rate is around $3500 and her income is about 2K. I am looking at veterans spouse assistance, but not looking good now as they were still married, but separated. Military retirement looks low too at jut $175 month.
 
Answer I have come up with is to sell her home, invest the profit (about 275K) and use that to cover the extra monthly cost.

I have talked to my financial advisor and he recommends and annuity for just the income end of it. I am no fan of them and still looking at options. It does have a 5+ interest rate garanteed, which is what I need (about $1500 month) Fee's are 2.5 up front and 1% year after that.

Another is to get CD's and roll them over now and then using the dividens for the same use. Principle is gauranteed, but interest can go up/down with renewal.

Same idea on mutual funds, but same issues as with CD's for the most.

Per my tax guy the annuity would have little or no tax issues and she pays no taxes now or need to file with current income.

Nothing is going to happen quick except her placement. Getting the Dr paperwork monday, then getting her in just the home paperwork.

It is a nice place nearby https://www.brookdale.com/en/communities/brookdale-vacaville.html and even closer to me than where she lives now.

Anyway, any more ideas from you guys or feedback?
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Offline Flyin6

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Re: Investing for income after home sale?
« Reply #1 on: August 25, 2018, 10:08:02 AM »
Ya know, I have something else you might consider

Is she in such a state that you can make her a ward of the state?

Not being harsh, we did it with my mom. You surrender a portion of her wealth, most of it probably and then kalifornia takes care of her for life.

You see, I believe that your mom would want the best for her children. If she could truly see what has happened to California and what is on the horizon, would she wish you to stay there at all.

I mean, realistically, can you actually continue to live there for 20-30 more years? There will be increasing violence and perhaps at some point a play to reunite it with mexico. Won't happen right away, but the violence will affect all. THe cancer of liberalism is killing the body california.

So if you could sell your place and combine that with the money from the sale of your mom's place, could you move to someplace where you could start anew, away from the heavy handed oppression of a liberal government??

Food for thought...
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Online TexasRedNeck

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Re: Investing for income after home sale?
« Reply #2 on: August 25, 2018, 02:44:21 PM »
JR tough decisions. Prayers for you.

Generally speaking annuities are better for the selling agent than the buyer. Tread carefully


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Offline stlaser

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Re: Investing for income after home sale?
« Reply #3 on: August 25, 2018, 03:00:37 PM »
Jr, is house paid for?


The reason I ask is because I look at things from an asset versus liability state. If the house is paid for or mostly paid for it is an asset. Your mom is the owner assuming? With her age there are tax advantages to keeping it an potentially using it as a rental. I believe rent income for her is tax free at her age. Assuming it is Cali and rent is high you become the manager of the rental company and tax advantages for you. Wave the yearly income for managing it and have it setup so you gain a percentage of ownership per year. Keep the asset and pay your mom?s living expenses. That?s my initial thought versus paying a good portion of it to a real estate agent for a commission and then yearly commissions to what amounts to a sales guy who sold you an annuity.

My thought on the yearly acquisition of a percentage of property is in case something comes up and sh has a huge med expense or something where the fed tries to force the sale of the property. At that point you would own x percentage and protect the asset.
« Last Edit: August 25, 2018, 03:22:54 PM by stlaser »
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Offline JR

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Re: Investing for income after home sale?
« Reply #4 on: August 25, 2018, 04:41:22 PM »
Thx guys, but renting as well as making her a ward is something I have considered.

The house is all but paid for, just a few payments to go and we could just pay it off with savings, but will use the profit. Everything she has is in a trust, I am the trustee and I already have full power of attorney.                                                                                                                   

Ward of state here they come and take everything, and with the house as an asset she is worth to much. For veterans benefits you have to have assets under 80K, not including your house, so she is good (that would really solve all the problems if we get that)

Renting would just net us enough to keep her going. Nothing for maintenance.

The right investment will maintain the principal and give us enough to cover the extra and even build the primary hopefully. This would be the CD/mutual funds.

The annuity costs 2.5% to get into (over several years) and 1% a year after that. Income is guaranteed even if the principle goes down. This is safe, can grow but costs more. Yes, I have always been told that annuities are bad.
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Online Bob/OlallaWa

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Re: Investing for income after home sale?
« Reply #5 on: August 25, 2018, 06:45:14 PM »
JR, bring her home, get caregiver status and get paid for taking care of her. Maybe not the best answer, but is an option. Heck you just built a bedroom you could move into and give mom the master, right.....

Offline JR

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Re: Investing for income after home sale?
« Reply #6 on: August 25, 2018, 08:01:48 PM »
That was my first choice and they would even pay us to care for her. We just don't have the room and to many nightmares with caregivers.

She needs pretty steady care, meds (which I do now) she forgets all the time and can barely walk now.

If it is cost neutral, it s win!
Retired LEO  Lifetime NRA+  Outcast in Calif

"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants"

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Offline stlaser

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Re: Investing for income after home sale?
« Reply #7 on: August 25, 2018, 08:30:09 PM »
Well JR, looks like you?ve covered all the options. I?m sure I?ll be in your shoes not too far in the future.
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Offline JR

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Re: Investing for income after home sale?
« Reply #8 on: August 25, 2018, 08:38:52 PM »
Hopefully not "yourself", your way to young!!

Guys, look at long term care EARLY!!!!
Retired LEO  Lifetime NRA+  Outcast in Calif

"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants"

Thomas Jefferson

Online Bob/OlallaWa

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Re: Investing for income after home sale?
« Reply #9 on: August 25, 2018, 08:43:48 PM »
The right long term care insurance is a good option if done soon enough. We are doing a hybrid life insurance policy on my wife, if she doesn't need it, it goes to our estate, if she does she is covered quite nicely. Me well, fake a fall and get it over with. Good luck with it JR, I am sure you will make the right choice and I am sorry you are going through this..

Offline stlaser

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Re: Investing for income after home sale?
« Reply #10 on: August 25, 2018, 08:47:50 PM »
Hopefully not "yourself", your way to young!!

Guys, look at long term care EARLY!!!!

Dad is 81 & Mom is 69 so a bit long in the tooth for the insurance.
Unretired, sweeping floor at GLO once again & making coffee.