I don’t see an SPiA as the best option- seems likely she will just spend that income as it comes in, and there won’t be much for major needs/emergencies. (50k by itself might not go very far). Plus- she does not really need additional income if she has SS and a pension and is breaking even now, so why just spend it now, when she has no emergency fund? Clearly she has a spending problem- don’t give her more income to waste. (Most teachers pensions should have a COLA, so I am assuming it does).
What she needs is some way of setting aside that full 150k where it is really difficult for her to spend without a really good reason. What exactly that would be I don’t know. I do know that her seeing a deposit each month into her account is likely to see it spent though. Reality is that she probably has plenty of room still to cut back on day to day expenses.
I think that knowing how she managed to blow thru a million in assets or investments while still working would be needed to have some kind of idea on what she needs to watch out for, otherwise she may just end up taking out a mortgage or HELOC on the new house at some point, based on how things have gone so far.
She is still better off than a lot of retirees- she has more/equal income to her expenses, and 750k in total net worth. And likely could do reduce her expenses if desired. All is not lost, but she needs to change her behavior more than anything else. Could be a gambling problem, living beyond her means, just bad financial decisions, who knows, but if she keeps it up she won’t even have a house to her name at some point. If it was just some random person- good luck. My brother’s widow? Yeah I would try to figure out what the issue was and give some advice as able. (Probably won’t be listened to, but at least my conscience would feel better).
What she needs is some way of setting aside that full 150k where it is really difficult for her to spend without a really good reason. What exactly that would be I don’t know. I do know that her seeing a deposit each month into her account is likely to see it spent though. Reality is that she probably has plenty of room still to cut back on day to day expenses.
I think that knowing how she managed to blow thru a million in assets or investments while still working would be needed to have some kind of idea on what she needs to watch out for, otherwise she may just end up taking out a mortgage or HELOC on the new house at some point, based on how things have gone so far.
She is still better off than a lot of retirees- she has more/equal income to her expenses, and 750k in total net worth. And likely could do reduce her expenses if desired. All is not lost, but she needs to change her behavior more than anything else. Could be a gambling problem, living beyond her means, just bad financial decisions, who knows, but if she keeps it up she won’t even have a house to her name at some point. If it was just some random person- good luck. My brother’s widow? Yeah I would try to figure out what the issue was and give some advice as able. (Probably won’t be listened to, but at least my conscience would feel better).
Statistics: Posted by MHA556 — Tue Nov 12, 2024 5:39 am — Replies 63 — Views 7158