Prepped financial planning

[Robinjopo1]

My mom is 85 and she asked for financial advise. My planner plus my brother' planner said "absolutely do not do that at her age".

Well, today she turned $30k over to someone.

How do you know when it's time to take her checkbook away. She also, buys crap all the time that she will never use.
I'm torn on this.

Anyone have any experience with the elderly and their finances?

 

[jimLE]

See if you can talk her into turning ALL financial control over to you.maybe your brother as well as you..if not.then talk with a lawyer. To see what she/he says.

 

[Robinjopo1]

See if you can talk her into turning ALL financial control over to you.maybe your brother as well as you..if not.then talk with a lawyer. To see what she/he says.

She is so afraid of growing old that this would be the ultimate slap for her.

I just want her to have money in case her health gets bad. She's great for 85, but loves to go to the casinos and play the lottery

 

[Danil54grl]

Would she be against maybe a monthly allowance. Kinda like ok mom, this is what you are allowed to spend but if you need to go over that amount you need to get with me or brother involved type of thing? $30,000 is a lot of money. Was it for something she really needed? None of my business what the money was used for, but is she making wise financial decision still. I guess going to a casino may be a way for her to get out and socialize with her friends as long as she is not over doing it.

 

[Danil54grl]

Since she was asking for financial advise maybe she is now concerned and looking for some help. May not be against an allowance type deal.

 

[Robinjopo1]

Would she be against maybe a monthly allowance. Kinda like ok mom, this is what you are allowed to spend but if you need to go over that amount you need to get with me or brother involved type of thing? $30,000 is a lot of money. Was it for something she really needed? None of my business what the money was used for, but is she making wise financial decision still. I guess going to a casino may be a way for her to get out and socialize with her friends as long as she is not over doing it.

She wanted to invest in some type annuity but for her to reap any reward she would have to live to be 100+.

They absolutely lied to her and told her it was 11.75% return, but it's not interest. They are paying her back her principle and charging her $3000 to do so.

It just pissed me off that we got her professional advise and she took the money out anyway.

She would totally be against an allowance.

As you can tell, I'm very angry.

 

[brandx]

My mom is 85 and she asked for financial advise. My planner plus my brother' planner said "absolutely do not do that at her age".

Well, today she turned $30k over to someone.

How do you know when it's time to take her checkbook away. She also, buys crap all the time that she will never use.
I'm torn on this.

Anyone have any experience with the elderly and their finances?

Absolutely I do. You know it is time when they start making unsound decisions. See if you can get that 30K back, no judge will say it is OK to take that much from an old lady. At 85 though the person may seem competent there are changes in the brain that makes decision making more difficult and a person can be easily taken advantage of. don't talk to a planner, talk to an attorney who specializes in elder care.

 

[brandx]

She is so afraid of growing old that this would be the ultimate slap for her.

I just want her to have money in case her health gets bad. She's great for 85, but loves to go to the casinos and play the lottery

There are ways she can have her money and still be secure. Set up automatic payments out of a account that is for her bills and set up a transfer to a an account that she has access to the fun money. Ask her how much she would like each month and give it to her through this automatic transfer. Keep the majority in a safe place.

 

[brandx]

She wanted to invest in some type annuity but for her to reap any reward she would have to live to be 100+.

They absolutely lied to her and told her it was 11.75% return, but it's not interest. They are paying her back her principle and charging her $3000 to do so.

It just pissed me off that we got her professional advise and she took the money out anyway.

She would totally be against an allowance.

As you can tell, I'm very angry.

Have her set the figure. old folks need to think they have control. So the idea is to get her to think she made the plan. Mull that over awhile.
When ever dealing with someone who is obstinate offer choices. You don't ask if they want you to control their money for them, instead ask, Mom here are your choices, do you want to _____ or do you want to ______. Make sure she knows that the reason is to secure her finances so she can have them and not be handing over money to so-called investors who take off the top... had my share of those as well.

 

[brandx]

Oh yea, and if you have two people trying to run finances there can be problems because there is not a majority to break a tie. So either one with a back up plan or something similar. But if you do have two people make sure that two No's equal a no and two yes's equal a yes and one no and one yes equal a no. Mom needs a POA

 

[Robinjopo1]

Oh yea, and if you have two people trying to run finances there can be problems because there is not a majority to break a tie. So either one with a back up plan or something similar. But if you do have two people make sure that two No's equal a no and two yes's equal a yes and one no and one yes equal a no. Mom needs a POA

My brother has POA on her checking account, but she cashed a CD for this. I guess this is just going to be an expensive lesson for her.

When she goes to casinos, she goes with my cousin who plays blackjack and she plays slots. They never see each other till time to go home. So it' not the socialization. I have no idea bow much money she takes. Probably not much,

When she plays lottery, she will spend say $50 initially. Then she scratches and gets $10. Then she says "oh, I won $10". Instead of being $40 in the hole.

 

[brandx]

My brother has POA on her checking account, but she cashed a CD for this. I guess this is just going to be an expensive lesson for her.

When she goes to casinos, she goes with my cousin who plays blackjack and she plays slots. They never see each other till time to go home. So it' not the socialization. I have no idea bow much money she takes. Probably not much,

When she plays lottery, she will spend say $50 initially. Then she scratches and gets $10. Then she says "oh, I won $10". Instead of being $40 in the hole.

He probably is not POA on her checking account, he may be listed on her checking at the bank. I have never seen financial POA's over just one account, they are over all the finances. so that needs taken care of, to get POA you go to an attorney and she has to approve it. There are many powers, they can be limited or be over everything, such as taxes, finances, selling, etc, and for health care. A POA comes into affect when she asks you to do something for her you can do so or if she is not able to do something, (either in a coma or some other way that she is not able to make a decision) then you may step in and do something for her. make an appt with an attorney and she must be there and just encourage her it is to protect her interests not yours. Make sure she feels totally involved and make her ask questions.
scope out a good attorney first, explain to them what you are trying to do , meet with them before bringing Mom so they know what is up and won't accidentally undermine the goal to protect her assets.

 

[Robinjopo1]

Since her bank is in KY and she spends most of the year here in TN, my brother has POA over her checking account. He doesn't have POA for her savings such as Cds and bonds.

She did it that way on purpose.

 

[Robinjopo1]

Well, my brother finally got her to call the person back and the agent admitted that the interest didn't start until 8 years after most of the investment is wiped out so there's nothing to draw interest on. My mom is 85.

She still didn't cancel. Too stubborn to admit she was scammed .

 

[Proud Prepper]

Get her a Fiduciary financial advisor. Explain them to her and cancel that investment she just made.

 

[Brent S]

I agree that she was scammed, and any good judge would agree too. The problems are one, you said she was still ok with the bad investment. And the other is to hire an attorney and take this to trial would cost more than it’s worth. I would try, gently, to advise her to let you and your brother to ‘help’ her with monetary issues from now on. As far as the crap annuity, it will be secure as an inheritance for someone other than her down the road, but I don’t see her ever reaping any benefits.

 

[Robinjopo1]

Get her a Fiduciary financial advisor. Explain them to her and cancel that investment she just made.

She has to cancel. We can't. Brother has been over showing her the actual numbers. She is supposed to cancel tomorrow. She is so stubborn, she will probably not cancel just to prove a point. Lol

These people are vultures. She would have to be at least 94 to reap any rewards. I'm stepping in tomorrow if she doesn't. That's the last straw. She knows I will take it to the mat. Done so many times with my kids and their schools. I was the mom with the largest file.

I never lost my temper, was super sweet, but ripped them to shreds with research.

 

[DrPrepper]

My brother has POA on her checking account, but she cashed a CD for this. I guess this is just going to be an expensive lesson for her.

When she goes to casinos, she goes with my cousin who plays blackjack and she plays slots. They never see each other till time to go home. So it' not the socialization. I have no idea bow much money she takes. Probably not much,

When she plays lottery, she will spend say $50 initially. Then she scratches and gets $10. Then she says "oh, I won $10". Instead of being $40 in the hole.

Spend $50 and win $10... I call that casino math. My in-laws and my aunt all go by casino math. I can’t figure out why they don’t get it. Everyone I know that gambles ( regularly) follows casino math... so frustrating.

 

[Brent S]

My sister dosent think twice of buying 25.00 in lottery tickets when she goes to a gas station. Yes, she has won 1000.00 at least three times in her life, but probably spent ten times that to do it. I bet she could have paid for one of her kids to go thru college over the last twenty years.
To be fair, 90% of people suck with money management. It’s a simple thing really. With everything you make, set some aside. There will always be emergencies in life, but there will also be investment opportunities that come your way. If you have a savings then you’re ready for both.

 

[DrHenley]

I guess some people find entertainment value in gambling, so when they win something they figure they are getting more back out of their entertainment than if they were going to the movies.