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I don't think $570 per month on grocery purchases sounds bad. With the prices increasing all the time, I'm not sure how much you can shave off of that.
My mom is the beneficiary of the trust. When dad died, it all went to her. She chooses to distribute to my brother and I but she's under no obligation to do so. It's essentially a gift she gives us each month that she and dad verbally agreed would be a good idea. They didn't want it in writing just in case she needed the money for some reason. Basically, what has happened is she was distributing more money each month that the trust was earning. So over 20 years, it's dwindled down. Now, to preserve it, she's reducing what she gifts us. I wish I knew this sooner, it would have been better to adjust things years ago and I really think her advisor should have told her that.
I only brought up the trust briefly to explain where the reduction in monthly income was coming from because I knew, if I didn't specify, people would ask questions. I glossed over the details of how it works because I didn't think they were important. But now I see I just caused more confusion. Sorry about that.
So there’s no detail to suggest the advisor has done anything wrong
has an income that is at or below 135% of the federal poverty guidelines
or
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experienced a substantial loss of income due to job loss or furlough since february 29, 2020 and the household had a total income in 2020 at or below $99,000 for single filers
I just thought of something. If you pay for garbage pickup, see if you can lower to pickup to 1x per week or a container that holds less waste. That should lower that cost if you can do that.
So there’s no detail to suggest the advisor has done anything wrong
I said he doesn’t act in her best interest and I don’t like him, not that he did anything illegal (which I assume is what you mean by wrong). It’s not illegal to sell a 70-year-old widow a life insurance policy, for example. But a 70-year-old widow really doesn’t need a life insurance policy when she has no debt or dependents and already has a small policy to cover funeral expenses. She didn’t go to him wanting a policy, he convinced her of it in a visit. She has no idea why she needs it, but he told her she did. And I find it no coincidence that he made a commission off it.
She was following his advice on this trust that she intended to last for decades. But he gave her poor advice on how much could be withdrawn and/or how to invest it in such a way that it would be self sustaining like she wanted. He let her make the payments for years without warning.
One could say buyer beware, but she’s elderly and has Parkinson’s (which effects your thinking capacity too). I wouldn’t say it’s fraud, but what this guy does is certainly a bit slimy. I only brought him up because you asked why the fund was running out of money. He manages it/advises my mom how to manage it. I don’t think there is any fraud or even slimy business going on with the trust… it’s more along the lines of incompetence.
Last edited by WalkingLiberty1919D; 06-16-2021 at 08:57 AM..
I just thought of something. If you pay for garbage pickup, see if you can lower to pickup to 1x per week or a container that holds less waste. That should lower that cost if you can do that.
That’s rolled in to the HOA fees.
Part of my problem is I have so few bills and most are fixed. But thanks for the idea.
Perhaps this will be useful for you: Grocery ads come out online on Wednesday, except for the restaurant supply that comes out on Monday. I check the ads when they come out and I keep a pad and pen next to the computer and I write down any sales items that I might want to buy.
While I do keep an eye out for unadvertised bargains, I do a lot of my meal planning around the advertised specials. That way, I am not trying to plan menus on the fly. I know what is on sale before I head to the market.
My favorite market does not do grocery ads. So, when I do my shopping, I go there first and I have a list of the advertised prices at other stores. I can easily see whether to buy the item there or to go to the next store and get it there.
I check the pantry before I go shopping to make sure I have all the ingredients for meals and I take a shopping list with me to make sure I don't forget anything.
Also, in my head, I know which store has the better quality items. If that store doesn't sell good meat or good produce, I don't care what the sale price is, I will buy the item elsewhere.
I said he doesn’t act in her best interest and I don’t like him, not that he did anything illegal (which I assume is what you mean by wrong).
You are incorrect in my commentary and you have not demonstrated anything to suggest he didn’t act in her best interest and your opinion that you don’t like him is entirely irrelevant.
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It’s not illegal to sell a 70-year-old widow a life insurance policy, for example. But a 70-year-old widow really doesn’t need a life insurance policy when she has no debt or dependents and already has a small policy to cover funeral expenses. She didn’t go to him wanting a policy, he convinced her of it in a visit. She has no idea why she needs it, but he told her she did. And I find it no coincidence that he made a commission off it.
There are numerous reasons to leverage life insurance and just because a 70 year old widow hasn’t told you why it occurred doesn’t mean it’s not a valid strategy. It’s possible she doesn’t want to share details with you. You’ve made it clear you don’t have any ownership, there’s no reason to accommodate you either your relative or the advisor
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She was following his advice on this trust that she intended to last for decades. But he gave her poor advice on how much could be withdrawn and/or how to invest it in such a way that it would be self sustaining like she wanted. He let her make the payments for years without warning.
You have no idea what advice he gave her on withdrawal amounts. You also have no idea if he warned her at all. You are in an entirely clueless position. The greatest risk to any financial plan, even with an advisor is clients overspending despite advice otherwise. I’ve seen it thousands of times, you are dealing with a single time of which you have limited to zero actual interaction with the person you are making judgement on
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One could say buyer beware, but she’s elderly and has Parkinson’s (which effects your thinking capacity too). I wouldn’t say it’s fraud, but what this guy does is certainly a bit slimy. I only brought him up because you asked why the fund was running out of money. He manages it/advises my mom how to manage it. I don’t think there is any fraud or even slimy business going on with the trust… it’s more along the lines of incompetence.
I brought it up because people are often clueless. An Advisor isn’t slimy because a client over spends. An advisor can’t magically make enough money to meet spending. You are extremely limited on what you actually know about the history and information. That’s also probably ignoring a lack of your personal experience and knowledge on the topic which simply compounds the issue you are having
I don't think $570 per month on grocery purchases sounds bad. With the prices increasing all the time, I'm not sure how much you can shave off of that.
Note she does not spend $570 per month on grocery purchases.
She spends $570 per month in a supermarket. There is a BIG difference. She already knows a disproportionate fraction of that $570 goes to non-food.
I said he doesn’t act in her best interest and I don’t like him, not that he did anything illegal ...
There is a concept of a financial fiduciary. You should find out if he is a fiduciary. If he is, then it is possible he has broken the fiduciary trust - at the very least by violating a "safe withdrawal rate."
Do you know if he charges her on a "percentage of assets managed" basis, and if so how much he charges her?
Last edited by RationalExpectations; 06-16-2021 at 09:56 AM..
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