Happy Saturday :)
I was having a hard time getting/staying in the work mode yesterday, but I did and managed to get quite a bit done. We're still a few months behind at work, due to that audit taking so much time. Anyhow I got Sept financials all done and started working on October and got almost halfway done on that. It also sounds like I'm going to get a little help with some of the more time consuming/less difficult task. One of the managers has an exchange student for the year, who wants to work, so we are going to have her do some of the data entry work. My goal is to get October done by the end of next week and hopefully have November completed by the end of February.
About a year or so ago I did up a spreadsheet to try to project how long my mom's money should last. I put a note on it the last time I updated (last Feb) what her investment balance was at that time. I put in a conservative rate of return of 4% a year, included her social security annually, an estimate of her annual expenses, plus the other bank balances she had at that time.
I went to update my spreadsheet and went to get her current investment account balance. Holy cow! I know it's gone up a lot, but it's actually seeing the #'s! it's like $102k more than it was this same time a year ago. I know her broker is earning more than 4%, closer to 10%, last time he updated us.
Basically, at this point, with her social security income and expenses only at about $3k a month, she's not even reducing her investment account. Sure, she has to do the RMD, but she only needs to spend about $5k of that RMD a year, the rest she can keep in savings/money market account. In addition her earnings on her retirement account is exceeding what she's having to mandatory withdraw for her RMD. Geez, at this rate she's never going to run out of money, LOL. It still boggles my mind how my step brother thought she was going to run out of money in about 10 years. The only thing I can think is he wasn't factoring in that this million dollars is going to keep earning a rate of return on it and that rate of return and her social security will more than cover her annual expenses, even when she has to go into a higher cost assisted living. Was he just dividing the approx $850k (at that point he sent me that email) by having to spend $85k a year on assisted living and expenses? Well, if so, he's an idiot and shouldn't have been in charge of her finances. I'd have to re-read his email, but I'm kind of remembering his estimate might have even been 8-10 years. And again, even if she did run out of money, it's not like she'd be homeless and have no care! Medicaid would take over and pay for her nursing care, just like it did with my grandma when she ran out of money. (she lived to 95 and actually almost had her money last until the very end - and she didn't have anywhere CLOSE to a million dollars)
Sitting here waiting for the big dump of snow we're supposed to get all day today. Hmpf! I looked on the weather radar map and we're in this little pocket area of not snowing, LOL. Yesterday morning dh shoveled and plowed the 3-4 inches and by afternoon it warmed up to 42 and melted, LOL.
I gave dh a haircut (just buzz him with the hair clippers) last night, so while I had the vacuum out to vacuum the hair on the bathroom floor I just continued and vacuumed the closest and our bedroom while I was at it. One less thing to do today.
Now, it's starting to snow. According to report we are supposed to get 12" or more this weekend. More than likely it'll be like half that.
DH used up a box of screws he had and I went online to order them from Lowes, but it's $45 for free shipping and these only cost $20. I'll have to have him figure out something to add. We do also get the big 55 gallon drum liners from there but those are only like $13 for the box, so I'm still short.
DD got some good news. She and her dh will be getting bonus's from their jobs. They both work for the same company and I guess were told no bonus's this year, but they changed their mind. She doesn't know how much, but were happy to hear the news.
also, no RMD required in 2020 due to COVID
ReplyDeleteunfortunately her first half had already come out in 2020, but I was able to stop her 2nd half distribution. Her broker has her set up to do the RMD it 2 parts during the year, first of March and first of Sept.
DeleteHave you heard from SB lately? I am glad you are in charge of her money and life. I hope the data entry help will help you and your job. I laughed about the melting snow after he worked to clear the bit of snow.
ReplyDeleteNo, never heard from him after I moved her and I haven't tried to contact him.
Deletethank goodness she can live with not too many $$ worries. SB's calculations were wrong, and tons of red flags. thank goodness you got it all sorted out. not surprising you haven't heard from him, does he even call her to see how she is doing, or send an email? SMH.
ReplyDeleteGood luck with your work stuff, and good news for your DD and her hubby!
his calculations were so far off. I don't think he's called for months now and honestly I don't think she thinks to call him at all.
Deleteit's so better off that she does not remember to call him, because god only knows what would happen.
Deletethat's so true, though if he did call every so often she really wouldn't remember now. I can tell for people that she only talks to rarely, she doesn't think she has talked to them in a very long time, but she knows she talks to me and uncle every day. Like my dd could call her this week and a week later she won't remember and she'll think she hasn't heard from her in a long time.
DeleteI think it is very respectful of you to help track your mom's money, while helping her stay as independent as she can for as long as he can. Even the act of making the notes in the check registry rather than just doing it for her bank statement has to help a bit with her being the owner of her money. My sister di that with my parents-helped and clarified, but didn't take it over completely, and I think my family was blessed that my sister did such a good job, and I know my parent appreciated it. Of course, we had no memory issues with either, but hearing and new rules were challenging.
ReplyDeleteI keep trying to let her keep track of it, but at this point I really am, haha. She just kind of thinks she is, but she did say she knows I'm also keeping track of it.
DeleteI am so glad that you have noticed the red flags earlier and got SB out of the way. Despite the memory issues, I am sure your mom knows she is lucky to have you. Elderly people are so vulnerable. There are all sorts of people preying on the elderly.
ReplyDeleteShe is very nice about always saying how much she appreciates me. SB isn't dumb, so I'm not sure how he could have thought she didn't have enough money to live out the rest of her life comfortably.
DeleteThat's good news for your daughter and her husband. A bonus is always exactly that isn't it - a bonus! And it looks like your mom now officially has permission to live forever, right? It does make you wonder what your step brother was doing though doesn't it!
ReplyDeleteTheir company does usually do a nice annual bonus, so they are really happy they will at least be getting something this year. And yes, you are right - my mom can pretty much live forever (or at least until 105 haha)
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