How much in assets to yield $15,000/month in investment returns?

[Anonymous]

Anonymous wrote:We have a 14M stock portfolio. Dividends are about 80K a year, so 6.6K a month. Why? We chose high tech stocks that give very little dividends but high potential for growth. The goal is to leave capital untouched for future generations.

You can earn more with stocks that prioritize dividends.

You might have a good grip on your own investment strategy, but your critical reading skills are a failure.

[Anonymous]

Anonymous wrote:Thanks, PPs. Mom is in her mid-60s and is mostly in good physical health. People in her family generally live into their 90s. She has nowhere remotely close to $4 million in assets and she gets a modest amount of SS.

This makes ZERO sense. My mom is in her 70s and is of course living independtly. If youre mom is healthy why in the world would she need assisted living? My boss is in his mid 60s and might as well be in his mid 40s. To think of either of those two in assisted living is laughable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thanks, PPs. Mom is in her mid-60s and is mostly in good physical health. People in her family generally live into their 90s. She has nowhere remotely close to $4 million in assets and she gets a modest amount of SS.

This makes ZERO sense. My mom is in her 70s and is of course living independtly. If youre mom is healthy why in the world would she need assisted living? My boss is in his mid 60s and might as well be in his mid 40s. To think of either of those two in assisted living is laughable.

Another one who does not understand why the need for assisted living now.

My great aunt is turning 90, and only moved to assisted living 3 years ago. And she's at the lowest level of care. Before that she lived with her spouse, independently, and with her son.

[Anonymous]

OP, you and your sibling need to try to work together on this. It is clear you each react strongly to the other, making it worse.

Why does your 60-something mother need AL? Or are you trying to plan for the future?

15K/month for a 60 yo is something altogether different than 15K/month for an 80 yo.

But, back of the napkin, for 15K/month drawdown, you will need about 210K/year. (180K + income tax on that of about 30K.) That would be about 5.3mm at a 4% withdrawal rate.

[Anonymous]

OP isn't asking for financial advice for her mom's twilight years.

She's looking for ammunition for her petty little b**** fight with her sister.

[Anonymous]

5 mill in tbills/bonds would do the trick

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks, PPs. Mom is in her mid-60s and is mostly in good physical health. People in her family generally live into their 90s. She has nowhere remotely close to $4 million in assets and she gets a modest amount of SS.

This makes ZERO sense. My mom is in her 70s and is of course living independtly. If youre mom is healthy why in the world would she need assisted living? My boss is in his mid 60s and might as well be in his mid 40s. To think of either of those two in assisted living is laughable.

Another one who does not understand why the need for assisted living now.

My great aunt is turning 90, and only moved to assisted living 3 years ago. And she's at the lowest level of care. Before that she lived with her spouse, independently, and with her son.

DP. Classic DCuM answer. No actual insight on the question asked, but wants to contest the premise. Why in the world do you think this is any of your business?

I doesn’t matter what your granny did. Early onset dementia is a thing, and people can live a very long time with it. My grandmother needed round the clock care in her 70’s, was otherwise healthy and lived to be 95.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks, PPs. Mom is in her mid-60s and is mostly in good physical health. People in her family generally live into their 90s. She has nowhere remotely close to $4 million in assets and she gets a modest amount of SS.

This makes ZERO sense. My mom is in her 70s and is of course living independtly. If youre mom is healthy why in the world would she need assisted living? My boss is in his mid 60s and might as well be in his mid 40s. To think of either of those two in assisted living is laughable.

Another one who does not understand why the need for assisted living now.

My great aunt is turning 90, and only moved to assisted living 3 years ago. And she's at the lowest level of care. Before that she lived with her spouse, independently, and with her son.

DP. Classic DCuM answer. No actual insight on the question asked, but wants to contest the premise. Why in the world do you think this is any of your business?

I doesn’t matter what your granny did. Early onset dementia is a thing, and people can live a very long time with it. My grandmother needed round the clock care in her 70’s, was otherwise healthy and lived to be 95.

Needing AL in your 60s is highly unusual. Op asked for a number and people provided it using the typical scenario of an elderly person going into AL in their 80s with a remaining life expectancy of maybe 10 years or so.

Someone going into AL in their 60s is in a completely different situation. That’s not due to general aging, there’s a disease at play, and the responses would likely be different if people knew what the actual scenario was, as the remaining life expectancy is very different.

[Anonymous]

You don’t need a 4% withdrawal ratio if your mom is really old and not in good health. You could probably get away with 6-8%, only risk is if she lives way longer than expected. But if she’s 90 with a lot of health issues you don’t need to be so conservative, I would say 2M is enough for 180k/yr if she won’t be alive a decade from now

[Anonymous]

Anonymous wrote:You don’t need a 4% withdrawal ratio if your mom is really old and not in good health. You could probably get away with 6-8%, only risk is if she lives way longer than expected. But if she’s 90 with a lot of health issues you don’t need to be so conservative, I would say 2M is enough for 180k/yr if she won’t be alive a decade from now

Mom is in her 60's per OP so could live another 30+ years.

[Anonymous]

Anonymous wrote:I need someone good with finances to do a quick calculation for me.

I am in discussion with my clueless and strategically uninvolved sister regarding our mother’s care. Our mother needs to go into an assisted living facility, and my sister is in total denial and is balking at the whole process. She said I need to just put all of our mother’s assets into some kind of investment or annuity or something so that my mother could get $15,000-$20,000 a month as a return. Then we could keep her in her home with round-the-clock care.

Because my sister is totally clueless, by her own choice, she has a very fictional idea of what our mother’s assets are. So that got me wondering how much my mother would need to have an order to convert it all into a $15,000 a month investment return (assuming run-of-the-mill investments and nothing crazy-risky). Is there anyone here who could do a back of the envelope estimate for me? I want to see just out of touch with reality my sister is.

OP, I've read through the entire thread. Since you said your mother is healthy and in her 60s, but also needs AL, then I am assuming she is physically healthy but has early onset Alzheimers. I know a friend of my parents' who was diagnosed at 65 and lived until 85. They put her in a group home and lived there the rest of her life. They couldn't afford at home care or AL.

You also said she has nowhere near 5mm required for longer term drawn down of 4%. If you and your sister don't have the ability to augment whatever she does have, then you need to take what she has and put that in whatever will pay the most but remain safe, including the money from the sale of her house, and put her in a full pay facility that eventually will take MediCAID once all her assets are spent down.

Caring for the elderly is extremely stressful, made worse when there is no good financial means.

Good luck.