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Thread: Sale of Parent's Home

  1. #1

    Join Date
    Dec 2006
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    Oregon
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    268

    Default Sale of Parent's Home

    Need some "sage" advice on what to do with the proceeds of the sale of my Dad's home. The proceeds will be approximately $150,000. His assisted living expenses are $3,855. His current income is $4,350. Which leaves him $495 for other monthly expenses, which include tv, phone, internet, medical. Also, he likes to treat when we take him out to eat. He is 82 years old and in okay health. Diabetic, heart disease, high blood pressure, cholesterol, all controlled by meds.

    What type of financial products should we consider to beef up his monthly income?

    Thank you for anyone willing to make suggestions.

    2moryrs
    No God, No Peace. Know God, Know Peace.


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  3. #2

    Default Re: Sale of Parent's Home

    fast cars. or else fast women. may you live to regret it.
    https://www.youtube.com/watch?v=fFGZ...e_gdata_player
    100g

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  5. #3

    Default Re: Sale of Parent's Home

    Would dividend paying stocks (or ETF) be too risky? Even something like Apple is paying over $12 a share (about 2.3%), MSFT is paying 3%, McD's 3.3%, Cisco 3.2%, etc.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  7. #4

    Join Date
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    Location
    Gainesville, Florida, USA
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    24,244

    Default Re: Sale of Parent's Home

    2moryrs,

    Think of all the money that could be saved if he lived with you or another sibling. You might be better off just leaving the $150K in his checking account - it'll take a long time to eat that down. Now if he lives to be 102 then a portfolio of dividend paying stocks (discount broker) would bring in extra money. Think in terms of energy stocks and utilities and have the dividends swept each month into a money market fund. You could probably build a nice portfolio with around ten different stocks. A stock like BTE pays a monthly dividend. Anyway it's all a risk of longevity and stocks are the only game in town. Good luck.

  8.  
  9. #5

    Join Date
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    Oregon
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    Default Re: Sale of Parent's Home

    Thank you for the responses. Good food for thought!

    2my
    No God, No Peace. Know God, Know Peace.

  10.  
  11. #6

    Join Date
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    Oregon
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    Default Re: Sale of Parent's Home

    BT,
    Living with my Brother or I is not an option. He wants to stay with the Docs he knows and who know his health issues. I would love to have him closer to me but I respect his wishes until he tells me other wise.
    2my
    No God, No Peace. Know God, Know Peace.

  12.  
  13. #7

    Join Date
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    Oregon
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    Default Re: Sale of Parent's Home

    Tom,
    Do you think Vanguard has an ETF that pays well from dividend paying stocks?
    2my
    No God, No Peace. Know God, Know Peace.

  14.  
  15. #8

    Join Date
    Apr 2008
    Location
    Cleveland, Ohio
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    12,151

    Default Re: Sale of Parent's Home

    2moryrs, I would look into either a trust fund or some type of annuity that would provide a monthly income for your father. With his current income he wouldn't need much more a month to be comfortable.
    Just a note. With your father in assisted living his income is covering everything for now. If he has to go into a nursing home just make sure there is no financial attachment to you or your bother. This way if your father's finances can't cover the expenses they can't come to you for the money. My father-in-law set up a trust fund for him and his wife. When he passed away the trust fund is still providing for my mother-in-law. If she depletes that trust fund they can't come after my wife or her siblings for the money. There is no financial connection. Just make sure everything is in your father's name.
    May the force be with us.

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  17. #9

    Default Re: Sale of Parent's Home

    nasa1974, what constitutes a financial attachment? Are we talking about something like a joint checking account, your name being on their Trust, an inheratance from a will?
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%


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  19. #10

    Join Date
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    Default Re: Sale of Parent's Home

    Quote Originally Posted by Cactus View Post
    nasa1974, what constitutes a financial attachment? Are we talking about something like a joint checking account, your name being on their Trust, an inheratance from a will?
    Anything with their fathers name on it; savings account, checking account, mortgage even a trust fund will be used to pay for any expenses needed for his care. All of that would need to be exhausted before Medicare took over. As an example if 2moryrs had a joint checking or savings account with this father and 2moryrs was depositing some of his money into that account he would have to prove what was his so that it wouldn't be used for his fathers needs. That just becomes a nightmare. Being a beneficiary doesn't count.
    May the force be with us.

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  21. #11

    Default Re: Sale of Parent's Home

    Thanks for the explanation. That helps. I hate finding out about these things after it's too late.
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2025
    Past Returns:
    2020 31.85%,2019 27.97%,2018 -3.36%,2017 13.10%, 2016 -1.79%, 5Yr Avg 12.61%

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  23. #12

    Join Date
    Dec 2006
    Location
    Oregon
    Posts
    268

    Default Re: Sale of Parent's Home

    Thankfully, Mom and Dad had set up a trust and put everything into it. I have my name on the checking accounts so that I can pay the bills. House should be sold soon and will be putting most of the money into savings account attached to the main checking account. Still looking at other options after the tax season is over.

    2my
    No God, No Peace. Know God, Know Peace.

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