I know some of you will say talk to a wealth advisor and I will, but as you can tell I like to research thing thoroughly and you guys have an invaluable wealth of knowledge that's helped me over the years. So any feedback/advice here would be greatly appreciated.
How do I allocate the $200k portion of the money that my Dad(M/65) plans to keep for himself? He has no debts, so will just need money for ongoing living expenses and recreation. I know it's his money and he can do whatever he wants but If he leaves it all in his account, it's almost a guarantee he's going to squander it through ill advised investments, gambling, or straight out scammers. He may or may not take my advice, but I'm going to at least try. My initial thoughts are as follows. Bare in mind that all of these are all foreign investments:
1. Purchase Good Health Insurance: Previously, I would foot the bill for all his medical expenses, but now that he's getting older and has the resources, I think it makes sense. Estimated Cost is about $800/year based on some research.
2. Purchase a $30k 10 year fixed annuity, which would probably pay somewhere in the region of $400/month. I think this a wise decision for him because I think having a steady income stream would prevent him from spending impulsively. This money would also represent most if not all of his monthly living expenses(no rent).
3. I don't think he needs any life insurance because noone is really dependent on him and all costs would be covered by me or siblings in that unfortunate event.
4. Purchase a car $30k(something he wants to do)
5. Home improvements $40k
Of the 100k remaining he will probably end up gifting most of it to family and friends, which is his right.
'
How do I allocate the $200k portion of the money that my Dad(M/65) plans to keep for himself? He has no debts, so will just need money for ongoing living expenses and recreation. I know it's his money and he can do whatever he wants but If he leaves it all in his account, it's almost a guarantee he's going to squander it through ill advised investments, gambling, or straight out scammers. He may or may not take my advice, but I'm going to at least try. My initial thoughts are as follows. Bare in mind that all of these are all foreign investments:
1. Purchase Good Health Insurance: Previously, I would foot the bill for all his medical expenses, but now that he's getting older and has the resources, I think it makes sense. Estimated Cost is about $800/year based on some research.
2. Purchase a $30k 10 year fixed annuity, which would probably pay somewhere in the region of $400/month. I think this a wise decision for him because I think having a steady income stream would prevent him from spending impulsively. This money would also represent most if not all of his monthly living expenses(no rent).
3. I don't think he needs any life insurance because noone is really dependent on him and all costs would be covered by me or siblings in that unfortunate event.
4. Purchase a car $30k(something he wants to do)
5. Home improvements $40k
Of the 100k remaining he will probably end up gifting most of it to family and friends, which is his right.
'
Statistics: Posted by JKA45 — Fri Aug 30, 2024 1:18 pm — Replies 3 — Views 165