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I just happened upon my parent's retirement portfolio
Posted on 4/9/12 at 9:52 pm
Posted on 4/9/12 at 9:52 pm
As far as I know this is their most significant asset base (aside from their home which they own outright and some land in Mississippi).
I'm kind of shocked/disappointed about how little money they have in this account. They're both likely going to live at least 10 more years (my mom wouldn't shock me if she lives another 20).
I guess there's not much I can do about it - I have two siblings so it's probably good I see this now rather than counting on some financial windfall in 15 years.
I guess I just assumed that since my dad retired so young (he owned his own business and retired at 52 or so) that he was way more loaded than this. Hell, my 401K and IRA's will be likely be worth more than this portfolio in another 15 years and I'm in my early 30's.
I'm kind of shocked/disappointed about how little money they have in this account. They're both likely going to live at least 10 more years (my mom wouldn't shock me if she lives another 20).
I guess there's not much I can do about it - I have two siblings so it's probably good I see this now rather than counting on some financial windfall in 15 years.
I guess I just assumed that since my dad retired so young (he owned his own business and retired at 52 or so) that he was way more loaded than this. Hell, my 401K and IRA's will be likely be worth more than this portfolio in another 15 years and I'm in my early 30's.
This post was edited on 4/9/12 at 9:54 pm
9
Posted on 4/9/12 at 10:12 pm to MinnesotaTiger
Well...the best thing IMO you can do is help your parents invest what limited assets in cash they have wisely. I would focus on trying to generate some income from a diversified portfolio of bonds, dividend paying stocks, etc. land is awesome, do they have timber? I don't think you and your siblings want to have to help foot their bills.
Posted on 4/9/12 at 10:29 pm to MinnesotaTiger
Well you going to tell us how much or not?
I think you should plan to retire in 15 just like dear old dad.
I think you should plan to retire in 15 just like dear old dad.
Posted on 4/9/12 at 10:50 pm to MinnesotaTiger
Dude, not giving us an amount in the MB is like not showing pics in the OT.
Posted on 4/10/12 at 8:53 am to MinnesotaTiger
quote:
rather than counting on some financial windfall in 15 years
Should not be counting on this anyhow,your parents have done enough for you, pave your own way!
Posted on 4/10/12 at 8:54 am to MinnesotaTiger
Don't forget that their generation is going to get to utilize SS benefits. Yours is likely not. You will need an extra ~$1,500/month to match what he is getting now. That's significant.
Posted on 4/10/12 at 10:11 am to MinnesotaTiger
quote:
They're both likely going to live at least 10 more years (my mom wouldn't shock me if she lives another 20). I guess there's not much I can do about it -
The Menendez brothers faced the same dilemma.
Posted on 4/10/12 at 10:23 am to Zach
I wonder if the parents in this scenario have "assisted" any of the children with things like college educations, housing down payments, debt reduction, divorces, or "helping out with the kids".
Like an iceberg, the biggest worry is under the surface...only here, we haven't even really heard the 1st 1/3rd of the problem.
Like an iceberg, the biggest worry is under the surface...only here, we haven't even really heard the 1st 1/3rd of the problem.
Posted on 4/10/12 at 12:37 pm to GFunk
I agree. Bro and I did not expect much when our parents died (in the same year). We spent days sifting through the junk in the old house. Filling garbage bags for pick up.
Me: Why did our parents think that any of this crap was worth keeping?
Bro: They grew up during the Depression. Something was better than nothing.
Once the little house was sold we each got 20K.
Me: Why did our parents think that any of this crap was worth keeping?
Bro: They grew up during the Depression. Something was better than nothing.
Once the little house was sold we each got 20K.
Posted on 4/10/12 at 4:31 pm to MinnesotaTiger
They might have taxable accounts you are unaware of from the sale of business and whatever that you are totally unaware of. Regardless, it is not wise to ever count on an inheritance, shite happens and extended medical care costs can be outrageous.
Posted on 4/11/12 at 1:44 pm to tirebiter
quote:
shite happens and extended medical care costs can be outrageous.
This is the part that worries me. I'm not counting on an inheritance, but I hate to see my mom live on beans and rice when my dad's terrible health eats up every single cent. I'm not in a position to afford LTC insurance for them now, but will likely be in 5 years. And to the OP, I know my parents finances pretty well, butter than most. I am suprised at how little also, but then again they financed everything they ever bought of any value. Opportunity cost are probably over 500K with that in mind.
Posted on 4/11/12 at 2:04 pm to sonusfaber
quote:
I'm not in a position to afford LTC insurance for them now, but will likely be in 5 years.
Fewer companies are writing LTC anymore, and the premium increases are shocking some policyholders. Those that signed up for a flat rate with level cost paid up in ten years looked great, then their insurer may go under. I don't know, the longer term costs are almost impossible to gauge accurately, it has some commonalities with the long tail risk associated with medical liability coverage. OTOH, you may pay for it for an extended period and never use it, like two family members did.
I will have racked up $18k on medical scans/tests/endoscopies in two months and paid $300 out of pocket, that is the bizzaro world known as the health care system with insurance, without insurance it would be a wee bit painful.
Regardless, the stats on the amount of investment assets/savings of Boomers looks miserable every time the numbers are updated.
Posted on 4/11/12 at 2:07 pm to sonusfaber
Was talking with the wife last night about stuff and we got onto people saving, etc. She used to be an Edward Jones rep, and said that she was amazed at the number of people that would walk in at 55+ telling her they wanted to retire and had barely $50k in a retirement account.
Posted on 4/11/12 at 4:26 pm to MinnesotaTiger
Sorry for your loss.
Actually, your parents did it right. The objective is not to leave money for your kids. Retiring early and using up the money as you age is the way my father did it, I'm going to do it, and so will anyone with sense.
Actually, your parents did it right. The objective is not to leave money for your kids. Retiring early and using up the money as you age is the way my father did it, I'm going to do it, and so will anyone with sense.
Posted on 4/11/12 at 4:47 pm to Tigris
Two months ago my buddy Frank stopped coming into the gym. He's 87. WWII vet. Came in for five minutes a day. When I saw him I always stopped my weight lifting and walked with him on the treadmill and talked, trying to keep him going longer than five minutes.
Three months ago he bought a brand new SUV. I thought it odd since he can barely walk much less drive. Two months ago he told me that he was getting all of his teeth removed and replaced with dentures. Again, I thought it's not really worth it at his age.
Today, the manager of the gym told me that Frank canceled. He has cancer and only weeks to live.
His wife, children and grandchildren are all doing well financially. But I really hate to see one of our last WWII vets go. Their stories are great and their attitude toward money is distinctly different from today's youth.
Three months ago he bought a brand new SUV. I thought it odd since he can barely walk much less drive. Two months ago he told me that he was getting all of his teeth removed and replaced with dentures. Again, I thought it's not really worth it at his age.
Today, the manager of the gym told me that Frank canceled. He has cancer and only weeks to live.
His wife, children and grandchildren are all doing well financially. But I really hate to see one of our last WWII vets go. Their stories are great and their attitude toward money is distinctly different from today's youth.
Posted on 4/11/12 at 4:50 pm to Tigris
quote:
Actually, your parents did it right. The objective is not to leave money for your kids. Retiring early and using up the money as you age is the way my father did it, I'm going to do it, and so will anyone with sense.
False.
The way to do it is save a boatload of money, put it into a trust, and add a bunch of stipulations to it so that you can enforce your will from the grave.
Posted on 4/11/12 at 5:02 pm to TheHiddenFlask
quote:That sounded really angry.
The way to do it is save a boatload of money, put it into a trust, and add a bunch of stipulations to it so that you can enforce your will from the grave.
Posted on 4/11/12 at 5:08 pm to MinnesotaTiger
quote:Shame you didn't do as well on the parental end. All of those years of parental frugality growing up was miserable at the time but assuming they croak soon it will be more than worth it. Particularly with Pops on 4 streams of retirement income offsetting most of any splurging.
I guess there's not much I can do about it - I have two siblings so it's probably good I see this now rather than counting on some financial windfall in 15 years.
All I need now is sibling incapacitation and voila, earnings potential doubles.
This post was edited on 4/11/12 at 5:18 pm
Posted on 4/11/12 at 8:36 pm to Tigris
quote:
Actually, your parents did it right. The objective is not to leave money for your kids. Retiring early and using up the money as you age is the way my father did it, I'm going to do it, and so will anyone with sense.
Several people many who are years away from retirement have told me about investment ideas that they hope will enable them to leave their children substaintial sums of money. My response is always to suggest they do what my parents did for me, plan so all of their needs later in life are taken care of to the point there is little chance they will ever need assistance from their children, if they should die leaving nothing, their children still got a great deal!
Posted on 4/15/12 at 10:32 am to CoolHand
Sorry forgot about this post.
Its like $1.1 million and yeah they do have timber and (small) oil interests on their land. If I had to guess I would have thought their cash/portfolio would have.been over $3MM and its barely 1/3 of that.
Its like $1.1 million and yeah they do have timber and (small) oil interests on their land. If I had to guess I would have thought their cash/portfolio would have.been over $3MM and its barely 1/3 of that.
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