Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If your parents really had all that much, they would have taken advantage of this era of trumps estate tax exemption to gift to you. Since they havent, to me that means they have something in the five to ten million range. Hate to break it to you, but they could go through most or all of that. My parents' elder care costs 300k per year. Your parents could live another ten to twnety years.

Dont count on it until it is in your bank account.

How can one possibly spend $300K per year on eldercare? And even if it somehow were possible, it would likely entail a level of luxury and self-indulgence that most parents would not engage in in lieu of giving money to their kids and grandkids.

You don’t know what you’re talking about. Do the damn math. I could show you receipts from the elder care company.

Anonymous wrote:

Anonymous wrote:If your parents really had all that much, they would have taken advantage of this era of trumps estate tax exemption to gift to you. Since they havent, to me that means they have something in the five to ten million range. Hate to break it to you, but they could go through most or all of that. My parents' elder care costs 300k per year. Your parents could live another ten to twnety years.

Dont count on it until it is in your bank account.

How can one possibly spend $300K per year on eldercare? And even if it somehow were possible, it would likely entail a level of luxury and self-indulgence that most parents would not engage in in lieu of giving money to their kids and grandkids.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it depends on how your parents currently spend.

My mom has around $2 million and doesn’t spend the principle. She takes the minimum distribution and then reinvests it in a taxable account. She lives off around $75k a year without spending down principle.

She also has a $700k paid off house. I assume this will go to end of life care. The average stay in a nursing / end of life care facility is 2 years. We plan to hire help for her before that stage. I’d guess that is $50k a year. She lives in a house with a full bed and bath on the main floor.

I’d be shocked if I don’t inherit a million and plan to pay off any remaining mortgage and save the rest.

What sort of "help" do you plan to hire? 24-7 care one on one for one person is about 120-150k per year at home. That's if she is somewhat mobile. If she has to be lifted to get to bathroom or shower or into wheelchairs, the agency may make you hire two people for at least that time

This is inaccurate and far fetched. Think what a great career this could be. You could work 12 hour shifts and earn $75-80k per year and not even need a college education. Do you know how many people would want a job like this? Think of all of the people working 10 hour shifts at McDonald’s and earning $30k.

It’s not inaccurate. I pay my parents elder care bills. It’s market.

And just keep telling yourself that people on this situation die soon. My parents have been like this for six years.

And yes many people won’t pay this because they don’t have it. But op’s parents do have it. And if parents have the money, it should be spent on giving them good elder care. So it could be spent down.

Highly unusual to require 24 hour care for 6 years.

No it’s not. Parkinson’s, Alzheimer’s, etc.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:15:57 again. Also, what is a “fully funded” 529? In-state flagship is 30K a year. SLACs are 77K a year. Some unis are 85-90K a year. For 2023. Who knows what it will be when your kids go to college!

$250K in the account with about 10 more years of growth to go. It’s definitely fully funded.

Ha - I used to think this. Let’s look at the stats.

Just picking an example, Duke: https://financialaid.duke.edu/how-aid-calculated/cost-attendance/

$84,517 excluding transportation, spending money, dorm supplies, clothing, gas, phone, insurance (health, car and dorm)

X 4 years = 338,068

Grad school, increased rates, more expensive school, etc.

I used to think like you.

Huh? At an average 4% rate of return, pp will have $370,000 in ten years. They’ll be fine.

Anonymous wrote:We expect to inherit $4-5M based on many conversations. We are planning for a satisfactory/acceptable retirement if we don’t inherit a dime. But assuming all goes as expected, we will have a better retirement and also leave a comparable amount to our children.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:15:57 again. Also, what is a “fully funded” 529? In-state flagship is 30K a year. SLACs are 77K a year. Some unis are 85-90K a year. For 2023. Who knows what it will be when your kids go to college!

$250K in the account with about 10 more years of growth to go. It’s definitely fully funded.

Ha - I used to think this. Let’s look at the stats.

Just picking an example, Duke: https://financialaid.duke.edu/how-aid-calculated/cost-attendance/

$84,517 excluding transportation, spending money, dorm supplies, clothing, gas, phone, insurance (health, car and dorm)

X 4 years = 338,068

Grad school, increased rates, more expensive school, etc.

I used to think like you.

Anonymous wrote:If your parents really had all that much, they would have taken advantage of this era of trumps estate tax exemption to gift to you. Since they havent, to me that means they have something in the five to ten million range. Hate to break it to you, but they could go through most or all of that. My parents' elder care costs 300k per year. Your parents could live another ten to twnety years.

Dont count on it until it is in your bank account.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it depends on how your parents currently spend.

My mom has around $2 million and doesn’t spend the principle. She takes the minimum distribution and then reinvests it in a taxable account. She lives off around $75k a year without spending down principle.

She also has a $700k paid off house. I assume this will go to end of life care. The average stay in a nursing / end of life care facility is 2 years. We plan to hire help for her before that stage. I’d guess that is $50k a year. She lives in a house with a full bed and bath on the main floor.

I’d be shocked if I don’t inherit a million and plan to pay off any remaining mortgage and save the rest.

What sort of "help" do you plan to hire? 24-7 care one on one for one person is about 120-150k per year at home. That's if she is somewhat mobile. If she has to be lifted to get to bathroom or shower or into wheelchairs, the agency may make you hire two people for at least that time

This is inaccurate and far fetched. Think what a great career this could be. You could work 12 hour shifts and earn $75-80k per year and not even need a college education. Do you know how many people would want a job like this? Think of all of the people working 10 hour shifts at McDonald’s and earning $30k.

It’s not inaccurate. I pay my parents elder care bills. It’s market.

And just keep telling yourself that people on this situation die soon. My parents have been like this for six years.

And yes many people won’t pay this because they don’t have it. But op’s parents do have it. And if parents have the money, it should be spent on giving them good elder care. So it could be spent down.

Highly unusual to require 24 hour care for 6 years.

No it’s not. Parkinson’s, Alzheimer’s, etc.

Alzheimer’s is on average 2-3 years of care.

I guess my MIL was above average with 9 1/2 years. Plus, she would have been in care for 3-5 more years if my FIL had not been there.

Sounds like they had the money to burn. Your average patient doesn’t require 12.5 years of LT care. That’s insane.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it depends on how your parents currently spend.

My mom has around $2 million and doesn’t spend the principle. She takes the minimum distribution and then reinvests it in a taxable account. She lives off around $75k a year without spending down principle.

She also has a $700k paid off house. I assume this will go to end of life care. The average stay in a nursing / end of life care facility is 2 years. We plan to hire help for her before that stage. I’d guess that is $50k a year. She lives in a house with a full bed and bath on the main floor.

I’d be shocked if I don’t inherit a million and plan to pay off any remaining mortgage and save the rest.

What sort of "help" do you plan to hire? 24-7 care one on one for one person is about 120-150k per year at home. That's if she is somewhat mobile. If she has to be lifted to get to bathroom or shower or into wheelchairs, the agency may make you hire two people for at least that time

This is inaccurate and far fetched. Think what a great career this could be. You could work 12 hour shifts and earn $75-80k per year and not even need a college education. Do you know how many people would want a job like this? Think of all of the people working 10 hour shifts at McDonald’s and earning $30k.

It’s not inaccurate. I pay my parents elder care bills. It’s market.

And just keep telling yourself that people on this situation die soon. My parents have been like this for six years.

And yes many people won’t pay this because they don’t have it. But op’s parents do have it. And if parents have the money, it should be spent on giving them good elder care. So it could be spent down.

Highly unusual to require 24 hour care for 6 years.

No it’s not. Parkinson’s, Alzheimer’s, etc.

Alzheimer’s is on average 2-3 years of care.

I guess my MIL was above average with 9 1/2 years. Plus, she would have been in care for 3-5 more years if my FIL had not been there.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it depends on how your parents currently spend.

My mom has around $2 million and doesn’t spend the principle. She takes the minimum distribution and then reinvests it in a taxable account. She lives off around $75k a year without spending down principle.

She also has a $700k paid off house. I assume this will go to end of life care. The average stay in a nursing / end of life care facility is 2 years. We plan to hire help for her before that stage. I’d guess that is $50k a year. She lives in a house with a full bed and bath on the main floor.

I’d be shocked if I don’t inherit a million and plan to pay off any remaining mortgage and save the rest.

What sort of "help" do you plan to hire? 24-7 care one on one for one person is about 120-150k per year at home. That's if she is somewhat mobile. If she has to be lifted to get to bathroom or shower or into wheelchairs, the agency may make you hire two people for at least that time

This is inaccurate and far fetched. Think what a great career this could be. You could work 12 hour shifts and earn $75-80k per year and not even need a college education. Do you know how many people would want a job like this? Think of all of the people working 10 hour shifts at McDonald’s and earning $30k.

It’s not inaccurate. I pay my parents elder care bills. It’s market.

And just keep telling yourself that people on this situation die soon. My parents have been like this for six years.

And yes many people won’t pay this because they don’t have it. But op’s parents do have it. And if parents have the money, it should be spent on giving them good elder care. So it could be spent down.

Highly unusual to require 24 hour care for 6 years.

No it’s not. Parkinson’s, Alzheimer’s, etc.

Alzheimer’s is on average 2-3 years of care.

Anonymous wrote:How are you factoring that in your planning?

Assume that even if your parents spent a ton of money for end of life care, you’d still be getting at least $1mil (but more likely closer to 2 or 3). Both parents currently mid-70s, one who is currently in poor health and the other who has been a smoker for 50+ years. You are currently around 40. You currently max retirement. Your parents have already fully funded a 529 for your one kid.

How would that affect how you are personally saving currently?