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HarryCarysGhost (99.75)

What a drag it is, getting old.

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June 04, 2011 – Comments (8)

Hey all,

This is a somewhat of a personal blog, but I did'nt know who else to turn to.

What I'm asking about is have you ever been in the position where you've had to take care of a parents welfare? I need to know whats steps I need to take. He's mobile but he might walk into the middle of the street.

I've been annointed king of his financials just because I know about stocks. But I have no idea how to get started. I'd like to see him getting a $300 check each mnth. were working with 100K pricipal.

Next qustion- how do asissted living places work, would it just be a percentage of his SS check? Unfortunately thats his best bet.

Sorry if this blog is a total bummer but it's been a long week.

8 Comments – Post Your Own

#1) On June 04, 2011 at 11:54 PM, ChrisGraley (30.20) wrote:

I do the same thing for my grandfather.

First, start with a budget and an assessment of his ability  to continue to live in the same manner that he was before. You sound like you have concerns in that area.

Figure out the biggest emergency first.

Is it financial?

Is it health related?

Is it that he needs supervision while at home?

Next since you were put in charge, don't be afraid to be in charge. Go to the rest of the family and don't be afraid to tell them that dad needs someone to mow his grass so he doesn't have to pay someone to mow his grass. Let them know that although they put you in charge, you need others to chip in. (This was my biggest mistake when I was put in charge and it's hard to get others involved when they are used to you doing everything.)

Also in today's financial environment, paying down any high interest debt is the biggest investment that you can make. 

Take advantage of the help out there in your area.

http://www.state.il.us/aging/1aboutidoa/coa.htm

http://www.state.il.us/aging/1abuselegal/LTC/LTC_council.htm

Do not underestimate his health care needs and make sure that he has proper insurance in place. Expect extra expenses to get him to doctor appointments and pay for home expenses during a hospital stay.

Last but not least, you have to look at the hand that you are dealt when it comes to investments.

Although most of us invest for the long term, you may not have that luxury depending on your father's age and health. You need safety in an uncertain market as well. If he's on a fixed income, you need to be very concerned about inflation.

So in his case, you need to be an dividend investor in large cap companies that seem to get a boost by inflation.

Utilities and Healthcare stocks immediately come to mind. I also set my grandfather up with PM's, but if I were doing this today, I would pick Canadian miner stocks. You get a better value and a little better protection against inflation.

 I'd try to cherry pick stocks from the dividend aristocrats. You are going to have a crisis to take care of almost every week when you are trying to run someone else's household. You need a portfolio that you don't have to micro-manage.

I hope this helps and I'm available for more advice if needed.

You have my email. 

 

 

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#2) On June 05, 2011 at 9:21 AM, rd80 (98.53) wrote:

I can't add much beyond what Chris posted beyond my thoughts and prayers.

$300/mo from a $100k base should be doable with fairly low investment risk.  Something like a mix of high quality long-term bonds and blue-chip dividend payers as recommended above should be able to get you there.  Even tho' I don't like bonds much at today's prices, the 4 and change yield on gov't 30's would get you there - but you wouldn't have inflation protection if you choose that option.

I would be cautious about investing that money until you have a handle on the expenses for assisted living.  I don't know if there's an upfront charge to get in some of those places.

When you say 'annointed king of his financials,' do you have all of that in writing?  You don't want to be in a position where another family member challenges a decision you made and then it turns out you didn't have the proper, legal authority.

If you haven't already, it might make sense to spend a little time with an attorney who specializes in elder care in your state.

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#3) On June 05, 2011 at 12:29 PM, HarryCarysGhost (99.75) wrote:

Thank you both so much,

This happened suddenly (he's only 67) so I'm not prepared for this and winging it.

 

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#4) On June 05, 2011 at 8:15 PM, Bays (30.68) wrote:

For your 100k investment i'd recommend something along the lines of this:

http://ca.ishares.com/product_info/fund/overview/XTR.htm

Yields around 6%, pays monthly, and has very little volatility.  Plus it's in CAD.

It would provide you $500 a month in dividends. 

 

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#5) On June 05, 2011 at 11:10 PM, Valyooo (99.60) wrote:

Diversify, and dont invest it all right now...the markets could still fall a lot

That said, make sure everything else is paid off, and in writing.  Then, I woud suggest listening to Bays, add some BME (so safe, and nice yield, nice chart), and throw in some PHK...high yield, and I highly doubt bill gross lets his fund get crushed.

Also for a little risk if you want throw in a tiny bit of AGNC.  19%  yield and their management is fantastic.  But mostly diversified safe yielders, little bit of phk, tiny bit of agnc.  no non-yielders, imo

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#6) On June 05, 2011 at 11:15 PM, Valyooo (99.60) wrote:

good song btw

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#7) On June 07, 2011 at 7:12 PM, HarryCarysGhost (99.75) wrote:

Thanks Valy, I always liked that song.

Hey man, hows the job search going?

Cheers

(I'm at 525 I have'nt checked your rank yet, so no comment ; )

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#8) On July 10, 2011 at 6:26 AM, HarryCarysGhost (99.75) wrote:

Thought I'd do an update.

He's doing much better now, I was somewhat freaked out when I wrote this. It was really weird not being able to talk to my dad like I normally would.

What happened was he was'nt eating right and was dehydrated then he cracked his skull on an open cabinet. Bam! concussion. I know it was'nt his first either

So all those things put him in the hospital.

He's going to be staying with his brother who lives near me, so I get to see him more. He was paying way too much in rent based on what he gets in SS.

I told him about being a more income orientated investor and he was cool with that. I think the fact that he was worried about money led to much stress. When he found out that every little things gonna be alright, that stress was relieved and he started acting more like himself.

Thank you all for your thoughts, it really meant a lot to me. 

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