Hi, first time poster - I'm geriatric millennial trying to help my 70-year-old mom. My dad passed last year and left the following:
Income generating property, valued at mid-seven figures, and an income of about 250k a year
An annuity worth mid-six figures that she has assumed custody of but hasn't done anything else
Precious metals valued in the low seven figures
Cash in the high six figures, sitting in low interest savings and money markets
A house that is owned outright, worth mid-six figures
They had no debt. They also had no retirement accounts besides the annuity. She needs about 50k annually to live. She has a pension that give her about 36k a year. She does not collect Social Security.
She lives in California.
Her accountant advised she will be jumping up to the 35% federal tax bracket this year, given the business income and her new filing status.
As far as goals, she would like to sell the business and her home and move closer to her kids in the LA area.
She engaged with a fee-only financial advisor who suggested she roll the annuity into a Lincoln i-4 Life, since she's stuck with an annuity regardless and this would generate about 1/3 of her needed income, half of that tax free, offer growth and something to leave behind when she passes. He otherwise suggested a variable universal life insurance policy, a structured annuity for 250k, selling down the precious metals 25% annually, place a percentage of assets under management with his firm (a large reputable company), and the cash equivalents into money markets or CDs.
His plan sounds like it would be fine - but only fine, probably could be a lot better. Some parts sound not great at all. She could also do nothing and would probably be fine the rest of her life. I don't see a reason to have her assets under management, but beyond choosing a three-fund strategy as an alternative to the funds that would otherwise be managed, I don't really know what to do here. Everything would be going into taxable accounts. The priority is simplicity - I want her to enjoy the remaining years of her life and feel confident about how her portfolio is split up and not think about it too much.
I'm just looking for top-level suggestions, ideas I can dive deeper into. Thanks in advance for any advice and please excuse any forum faux pas I've committed in my ignorance. Just want to help my mom out.
Income generating property, valued at mid-seven figures, and an income of about 250k a year
An annuity worth mid-six figures that she has assumed custody of but hasn't done anything else
Precious metals valued in the low seven figures
Cash in the high six figures, sitting in low interest savings and money markets
A house that is owned outright, worth mid-six figures
They had no debt. They also had no retirement accounts besides the annuity. She needs about 50k annually to live. She has a pension that give her about 36k a year. She does not collect Social Security.
She lives in California.
Her accountant advised she will be jumping up to the 35% federal tax bracket this year, given the business income and her new filing status.
As far as goals, she would like to sell the business and her home and move closer to her kids in the LA area.
She engaged with a fee-only financial advisor who suggested she roll the annuity into a Lincoln i-4 Life, since she's stuck with an annuity regardless and this would generate about 1/3 of her needed income, half of that tax free, offer growth and something to leave behind when she passes. He otherwise suggested a variable universal life insurance policy, a structured annuity for 250k, selling down the precious metals 25% annually, place a percentage of assets under management with his firm (a large reputable company), and the cash equivalents into money markets or CDs.
His plan sounds like it would be fine - but only fine, probably could be a lot better. Some parts sound not great at all. She could also do nothing and would probably be fine the rest of her life. I don't see a reason to have her assets under management, but beyond choosing a three-fund strategy as an alternative to the funds that would otherwise be managed, I don't really know what to do here. Everything would be going into taxable accounts. The priority is simplicity - I want her to enjoy the remaining years of her life and feel confident about how her portfolio is split up and not think about it too much.
I'm just looking for top-level suggestions, ideas I can dive deeper into. Thanks in advance for any advice and please excuse any forum faux pas I've committed in my ignorance. Just want to help my mom out.
Statistics: Posted by ConcernedSon — Tue Aug 20, 2024 9:05 pm — Replies 0 — Views 60