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Recently, I listen to one of the radio show called "Money Matters" by Wes Moss, who is a financial strategist from Atlanta. I also read his book called "You can retire sooner than you think". One thing I like about his book/show is that he compiled a lot of stories from the ordinary middle class. Many of the stories he talked about are good stories and, I can relate to my life and give me insights. Moss’s tone and attitude are down to Earth, unlike some the radio talk show host, who just brags about the ranking of his/her firm or books.
Story from Caller G
One of the caller, name G. His mother became a widow recently and she is only 75 years old. She has around 100K net worth and it is now sitting in her checking account, which is earning zero interest. G wants to know any good option to invest her money giving the current age.
Moss asked him a few questions. He asked G a couple of questions:
"What is your mother current financial situation?"
"What kind of monthly expense does she have to take care of?"
"What is your mom income and cash flow?"
"Does she need those 100K to bridge her income/expense gap?"
After clarification, it turns out that G’s mom doesn’t have a lot of expense. Her cash flow is positive each month and she doesn’t need her 100K saving to bridge the gap.
Moss then explains to the caller that he is going through the experience similar situation.
Being the older son in the family, Moss will pick up the responsibility of handling his parent asset as his parent are getting old, his parents’ financial burden will soon become his. Moss realized that if his parents are living healthily, they don’t really need much money to maintenance their lifestyle, that’s why Wes invests his parent assets in a Long Term Investment vehicle, instead of short term one. General speaking, the aging parents will eventually pass along their assets to their children. On a side note, there are many family feuds among sibling and relative to fight about inheritance and parent doesn’t trust their adult children on handling their asset.
My story
When my dad retired 15 years ago, he handed his check book to both my older sister and me, also the right to manage his bank account. At that time, we just bought our first single family house and we had a mortgage, property tax and different type of utilities bills to handle. Since my parents doesn’t read/speak English. It would be easier to have us to manage my parent checking account to pay some bills. Other than that, I didn’t think about any Long Term Investment with their asset. Throughout that many years, all the money was just sitting in the checking account with zero interest. Among my sisters and me, we agreed that it is their “blood, sweat and tears” money and it should have them to enjoy it for their personal used. So, we don’t bother to touch it. Plus, my sisters and I were busy on accumulating our own assets. In addition, my relationship with my sisters wasn’t that good. Neither my sister nor I have much confidence in financial planning and trust to each other. Staying in the “as-it” condition was the safest mode at that time.
Last March, my dad lost the battle to cancer and after he passed away, my mom wanted to liquidize all her 401K and bank accounts, and distribute the assets evenly among my sisters and I. But, my sisters are reluctantly to take her money and they still think those money are for her mom “personal” use. By the way, the relationship between my sisters and I have improved a lot in the past year, at least we can have some level of discussion. Trust and acceptances have been built among my sisters and me since my father was ill. J played a major role to bridge our family during this difficult moment and my mom feels very blessed to have J as her daughter-in-law.
What I learn/realize from Wes Moss advice?
After listening to the radio, I recognize my mom doesn’t really need the saving, like caller G’s mom. My mom lifestyle is minimal, she doesn’t have a car, and all the household expense is being taken care from my sisters. The medical insurance bills are the current expense. But, she already got covered from her medicare/massHealth. Thus, when my dad passed away, my mom shared with us that they accumulated a good amount of money to cover their funeral expenses. The act of saving up for their own funerals – my parents showed me how much they love me and my sisters by “lessen our financial burden” as much as possible. Circling back to the story, the excess cash flow from my mom’s social security collection is just sitting in her checking account, earning zero percent interest! So, why shouldn’t I allocate her assets to Long Term Investment earning 7-8% annually? Eventually, it will benefit to my sisters and I when we reach to retirement stage. I am sure J and I will be in a good shape financially when we retire. I know that my older sister will be okay as well , my only concern is that my younger sister has switched from her full time job to part time job due to the downsizing of her previously company. I don’t know exactly what her financial situation is and whether she has saved enough for her retirement. But anyway, as a brother, and inherited from my dad’s belief, family means helping out each other as much as we could, no question asked.
While looking back, why am I making this move now? But not 15 years ago?
For a few seconds, I wonder how come I didn’t have this thought 15 years ago - if I have done (the move) the Long term investment for my parent early enough, their asset would be much bigger than now. Of course, I overturn this thought moment later.
Everything happens for a reason, God is in charge! I realize that it wasn’t the right moment on “the move” 15 years ago. My relationship with my family was bad at that time. The level of trust wasn’t there yet. We would have a family feud if I took my parent’s money to invent on the long term investment, my parents didn’t have a lot, but still, it hurts relationship when it comes to money! Also, back then when I had zero knowledge on financial planning, I didn’t think even about my retirement nor my sister retirement and how would I do something with my parent asset to make the benefit out of it?
Sometime, I think about what’s the meaning of life… Life is full of making mistakes. Later on, we learn those mistakes and move on.
Conclusion: Are you experience similar situation? If so, what is your way of handling it?
Story from Caller G
One of the caller, name G. His mother became a widow recently and she is only 75 years old. She has around 100K net worth and it is now sitting in her checking account, which is earning zero interest. G wants to know any good option to invest her money giving the current age.
Moss asked him a few questions. He asked G a couple of questions:
"What is your mother current financial situation?"
"What kind of monthly expense does she have to take care of?"
"What is your mom income and cash flow?"
"Does she need those 100K to bridge her income/expense gap?"
After clarification, it turns out that G’s mom doesn’t have a lot of expense. Her cash flow is positive each month and she doesn’t need her 100K saving to bridge the gap.
Moss then explains to the caller that he is going through the experience similar situation.
Being the older son in the family, Moss will pick up the responsibility of handling his parent asset as his parent are getting old, his parents’ financial burden will soon become his. Moss realized that if his parents are living healthily, they don’t really need much money to maintenance their lifestyle, that’s why Wes invests his parent assets in a Long Term Investment vehicle, instead of short term one. General speaking, the aging parents will eventually pass along their assets to their children. On a side note, there are many family feuds among sibling and relative to fight about inheritance and parent doesn’t trust their adult children on handling their asset.
My story
When my dad retired 15 years ago, he handed his check book to both my older sister and me, also the right to manage his bank account. At that time, we just bought our first single family house and we had a mortgage, property tax and different type of utilities bills to handle. Since my parents doesn’t read/speak English. It would be easier to have us to manage my parent checking account to pay some bills. Other than that, I didn’t think about any Long Term Investment with their asset. Throughout that many years, all the money was just sitting in the checking account with zero interest. Among my sisters and me, we agreed that it is their “blood, sweat and tears” money and it should have them to enjoy it for their personal used. So, we don’t bother to touch it. Plus, my sisters and I were busy on accumulating our own assets. In addition, my relationship with my sisters wasn’t that good. Neither my sister nor I have much confidence in financial planning and trust to each other. Staying in the “as-it” condition was the safest mode at that time.
Last March, my dad lost the battle to cancer and after he passed away, my mom wanted to liquidize all her 401K and bank accounts, and distribute the assets evenly among my sisters and I. But, my sisters are reluctantly to take her money and they still think those money are for her mom “personal” use. By the way, the relationship between my sisters and I have improved a lot in the past year, at least we can have some level of discussion. Trust and acceptances have been built among my sisters and me since my father was ill. J played a major role to bridge our family during this difficult moment and my mom feels very blessed to have J as her daughter-in-law.
What I learn/realize from Wes Moss advice?
After listening to the radio, I recognize my mom doesn’t really need the saving, like caller G’s mom. My mom lifestyle is minimal, she doesn’t have a car, and all the household expense is being taken care from my sisters. The medical insurance bills are the current expense. But, she already got covered from her medicare/massHealth. Thus, when my dad passed away, my mom shared with us that they accumulated a good amount of money to cover their funeral expenses. The act of saving up for their own funerals – my parents showed me how much they love me and my sisters by “lessen our financial burden” as much as possible. Circling back to the story, the excess cash flow from my mom’s social security collection is just sitting in her checking account, earning zero percent interest! So, why shouldn’t I allocate her assets to Long Term Investment earning 7-8% annually? Eventually, it will benefit to my sisters and I when we reach to retirement stage. I am sure J and I will be in a good shape financially when we retire. I know that my older sister will be okay as well , my only concern is that my younger sister has switched from her full time job to part time job due to the downsizing of her previously company. I don’t know exactly what her financial situation is and whether she has saved enough for her retirement. But anyway, as a brother, and inherited from my dad’s belief, family means helping out each other as much as we could, no question asked.
While looking back, why am I making this move now? But not 15 years ago?
For a few seconds, I wonder how come I didn’t have this thought 15 years ago - if I have done (the move) the Long term investment for my parent early enough, their asset would be much bigger than now. Of course, I overturn this thought moment later.
Everything happens for a reason, God is in charge! I realize that it wasn’t the right moment on “the move” 15 years ago. My relationship with my family was bad at that time. The level of trust wasn’t there yet. We would have a family feud if I took my parent’s money to invent on the long term investment, my parents didn’t have a lot, but still, it hurts relationship when it comes to money! Also, back then when I had zero knowledge on financial planning, I didn’t think even about my retirement nor my sister retirement and how would I do something with my parent asset to make the benefit out of it?
Sometime, I think about what’s the meaning of life… Life is full of making mistakes. Later on, we learn those mistakes and move on.
Conclusion: Are you experience similar situation? If so, what is your way of handling it?