Parents out of money at 75

[Anonymous]

Anonymous wrote:All these posts saying the 75 year olds should get part time jobs are ridiculous. My 80 year old parents can't reliably email, text or even hear well. I can't imagine themtrying to navigate applying online, clocking hours on some company app, getting trained or doing customer service of any type. The amount of help they need when we go to a store shows me they cannot be the one behind the counter.

I laughed at those suggestions as well. Some 75 year olds are spry, most are not.

[Anonymous]

Anonymous wrote:Most older people live on SS. There were pensions back in the day in some industries but not all. 401ks didn't really show up until the 80s or so.

This. This forum is so detached from reality I even have to be away from here for a few days. Most Americans who are retired today or who will retire soon will have SS as their primary income retirement.

So many of us have so much money we forget that a lot of Americans are in dead end jobs with low pay. Even some jobs who are not dead ends pay very low wages.

Many of us have benefited from very high paying jobs just because we have a college degree.

[Anonymous]

Anonymous wrote:My concern would be that no matter how the 20k is paid, this is only the beginning of huge expenses coming your IL’s way.

Do they have any assets to sell like an extra car? Anything that would bring in some liquid?

This is a wake up call, OP - I really think they need to sell current home and downsize immediately- they can’t sustain their current lifestyle.

I think I’d list their house AS-IS and sell through a We Buy Any House type service. Get some cash and go from there.

Where in the world do people think they can live cheaper than in a paid off house?

[Anonymous]

Did they ever help you financially? Extend the same level of generosity to them.

[Anonymous]

Anonymous wrote:They should sell the house and move into $1700 all included rental with no upkeep. They also need to get some kind of part time job instead of sitting around. The house money is enough to pay rent for 20 years.
They could have added money to Roth IRAs the whole time working part time til 75. Gotten EIC, saver's credit perhaps.

My parent sold their house and moved into a rental. They love not having to deal with home maintenance and being close to their shopping and other activities. He lives solely on social security and is happy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My concern would be that no matter how the 20k is paid, this is only the beginning of huge expenses coming your IL’s way.

Do they have any assets to sell like an extra car? Anything that would bring in some liquid?

This is a wake up call, OP - I really think they need to sell current home and downsize immediately- they can’t sustain their current lifestyle.

I think I’d list their house AS-IS and sell through a We Buy Any House type service. Get some cash and go from there.

Where in the world do people think they can live cheaper than in a paid off house?

They’re only going to live another ten years- sell the $750k house - surely there’s somewhere they can afford on $75k a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My concern would be that no matter how the 20k is paid, this is only the beginning of huge expenses coming your IL’s way.

Do they have any assets to sell like an extra car? Anything that would bring in some liquid?

This is a wake up call, OP - I really think they need to sell current home and downsize immediately- they can’t sustain their current lifestyle.

I think I’d list their house AS-IS and sell through a We Buy Any House type service. Get some cash and go from there.

Where in the world do people think they can live cheaper than in a paid off house?

They’re only going to live another ten years- sell the $750k house - surely there’s somewhere they can afford on $75k a year.

OP says it’s worth $300k. And what if they live longer. Then who pays.

[Anonymous]

How much is their actual income from SS? What do they have after taxes? The actual take home?

Talking about selling the house and moving to a rental can be a bit shortsighted. Houses cost money, but monthly rents are also not cheap. And rents go up every year. I'd sit back and do a full assessment on their circumstances and income and health and likely future trajectory before doing anything drastic like selling a house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would sell the house and get them into a continuous care community near you, take the left-over money and put it in the bank/whatever a financial planner recommends.

Use the extra money for fun trips and save some for care when they are too told to care for themselves.

We did this for my mom and it was the best thing we did. Friends, no house to care for, activities, easily affordable.

A continuous care that takes Medicaid. When the money is gone, they will be able to stay there.

It won't be luxury or sometimes even decent care, but it's the one that's "free" for you. You would have to find and visit facilities, persuade them to sell their home, help them move, and then pay for your visits there. The staff will take better care of your elder if they know you like to pop in unexpectedly.

And of course... please don't expect any inheritance.

When they run out of money they will have to qualify for Medicaid. And that’s not all about money. You have to physically and medically qualify. If they are currently living independently in their own home there is a good chance they won’t qualify when they run out of money. And then they get evicted for nonpayment. Eviction from Eldercare communities is a real thing.

If they can live off social security and the only issue is big expenses, then we’d probably give them the money if it really is a necessary expenditure. But we’d make the arrangements, manage the project and pay directly. And I wouldn’t be paying for upgrades.

Also, if I were looking at future large expenses for my family, I’d be clear that during my kids’ college years or whatever, we wouldn’t be able to assist so they might want to do some budgeting and cost cutting so they have some savings.

My housing expenses are so minimal - $750 a month for taxes and insurance and a bit for utilities. No way could I get an apartment for less than the cost of my housing. And a condo HOA could be more than my costs. So moving might not reduce their costs.

Of course moving doesn’t reduce their costs. What it does is free up a few hundred thousand dollars in home equity that they can use toward those costs.

That makes no sense as they will burn through that equity paying rent. Far cheaper just to pay taxes and insurance. With a rental they pay rental, insurance, and more.

[Anonymous]

Anonymous wrote:I would sell the house and get them into a continuous care community near you, take the left-over money and put it in the bank/whatever a financial planner recommends.

Use the extra money for fun trips and save some for care when they are too told to care for themselves.

We did this for my mom and it was the best thing we did. Friends, no house to care for, activities, easily affordable.

What? continuous care is super expensive almost anywhere. Don’t do this until you really need to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My concern would be that no matter how the 20k is paid, this is only the beginning of huge expenses coming your IL’s way.

Do they have any assets to sell like an extra car? Anything that would bring in some liquid?

This is a wake up call, OP - I really think they need to sell current home and downsize immediately- they can’t sustain their current lifestyle.

I think I’d list their house AS-IS and sell through a We Buy Any House type service. Get some cash and go from there.

Where in the world do people think they can live cheaper than in a paid off house?

They’re only going to live another ten years- sell the $750k house - surely there’s somewhere they can afford on $75k a year.

OP says it’s worth $300k. And what if they live longer. Then who pays.

SS. At 85 they wont' need much.

Look, why should the kids shell out cash now—if they're going to inherit the house anyway, sell the house and tighten the belt.

[Anonymous]

continuous care is for the super rich. If you're super rich go for it.

[Anonymous]

Anonymous wrote:I would sell the house and get them into a continuous care community near you, take the left-over money and put it in the bank/whatever a financial planner recommends.

Use the extra money for fun trips and save some for care when they are too told to care for themselves.

We did this for my mom and it was the best thing we did. Friends, no house to care for, activities, easily affordable.

No continuous care is not easily afforded that’s absurd

[Anonymous]

Anonymous wrote:continuous care is for the super rich. If you're super rich go for it.

There have been a number of CCRC bankruptcies in recent years as well:

https://www.nytimes.com/2025/01/18/health/retirement-community-bankruptcy.html

[Anonymous]

WTF is wrong with people? You give the money and leave it alone. SS sounds like it's enough for them. They can also receive Meals on Wheels deliveries.