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As far as taxes, once she was in MC, there was a 42% tax deduction from her rent for the medical portion. Again this was itemized in the annual budget. Once she was in MC, you might be mindful for those who may inherit, that annuities may be taxable and so are IRAs depending on full distribution vs over 10 years. Bank accounts, stocks and houses are taxed less, if at all. Talk to her advisor to determine if these 2 types of funds, IRA or annuities should be withdrawn from first while he is alive
Tothill's information is spot on.
This is a terrible time to be dealing with any investments, for anyone. Best of luck.
Here is a link to a related question so you can see how a similar discussion might go. They can be a little sharp, but there are some really knowledgeable do-it-yourselfers there.
"Investing Father's Assets Who Is In Nursing Home (POA)"
The Financial Planner has to have the funds invested as the owner wishes, not as the POA wants. The POA's social consciousness is not part of the conversation. I woudl be off side with compliance (and they review all transactions), if I sold a portfolio and purchased a completely different one based on a POAs request.
Just as I cannot force a client to purchase green investments, I cannot force them to invest in any specific industry.
If the owner of the funds had been interested in ethical/green/carbon neutral investments, that is how they would be invested.
Also keep in mind when reviewing the information Barb B has shared. If you decide to move the funds from the current company, as the POA you cannot assign beneficiaries, only the owner of the funds can do this and only if they have the mental capacity to do so. The beneficiary of the funds would be the estate by default. This may cause significant estate planning issues, including greater probate and taxes owning.
As DPOA and executor of my parents' estate (we lost Dad and I'm Mom's DPOA), I looked into the investments involved in the remaining IRA. Because of my social justice conscience, I decided to simply cash out the IRA rather than remain invested in pipelines, fracking, and a host of other investments that represent what I, personally, stand against.
If dealing with a small portfolio, consider divesting and cashing out. If interested in the market, look toward investing those funds in the green economy. A good financial advisor should be able to guide you, if interested in ethical investment opportunities.
1. Ask if s/he is a fiduciary.
2. Ask if s/he believes in a simple, low cost portfolio of the sort that is advocated by Warren Buffet and is exemplified by the Boglehead approach.
3. Ask her/him to show you what the expense ratio of each mutual fund is.
4. Go to www.bogleheads.org and read the Wiki. Educate yourself about how to figure out how much this "advisor", aka salesperson is costing dad each year. Ask what percentage of dad's AUM (assets under management) he charges each year.
Most advisors charge 1% or more IN ADDITION to the ER of each fund. This really eats into dad's nest egg, especially in a down market.
5. Find out what churning is. Find out if s/he's doing it.