Author Topic: Protecting Mom from herself  (Read 1121 times)

Uturn

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Protecting Mom from herself
« on: February 25, 2016, 07:53:52 PM »
Dad died back in October, and I've learned that he took care of absolutely everything.  So now, 70 year old Mom is having to learn how to manage her money and is freaking out that she is broke. 

Stats
paid for house worth $75k
paid for 2015 Kia
property tax $1200/yr
income $3400/mo (social security and Dad's Navy retirement)
$35k in savings account
$72k in annuity, earning I think about 2%
Tricare for medical

From what I see, Mom is pretty set.  But now she wants to cash in the annuity because the stock market is going to crash in June, and she wants to buy silver bars.  Her world view is Glenn Beck is truth and everyone else is evil hucksters paid for by wall street.  North TX is safe, everywhere else is gangbangers, terrorist, or people who kidnap white folks for sport. 

So back to my question, is there any way to protect her from her?  I'm on all of her accounts, but I currently have no way to stop any transactions.  Getting her declared unfit is going to make Thanksgiving dinner very uncomfortable.   
It's not about money, it's about mindset

Goldielocks

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Re: Protecting Mom from herself
« Reply #1 on: February 25, 2016, 08:03:22 PM »
An Annuity is the safest investment possible (assuming no default risk from insurance company). 

Who cares what it is making?  All you care about is the cash payouts.  Unless you have a fancy sort of annuity, the capital is not yours to touch anymore, in return for GUARANTEED payments, for life.  Silver Bars are no where close to that level of guarantee.

A lot of people have this challenge with senior parents, but nothing you wrote indicates that she is unfit.
I think you need to talk to her, have her agree not to touch savings at all without talking to you, nor take out lease / mortgage or other loan, but let her spend out her monthly income. 

You can work with her during the month as budgeting "crisis" arise, knowing that her money resets every month.
Also,  see if the local community center has finance seminars (not sales) for seniors, our area does, and it is good advice given.

MDM

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Re: Protecting Mom from herself
« Reply #2 on: February 25, 2016, 08:43:34 PM »
Is the annuity paying her a regular amount that she can spend now, or is she still in the "accumulation" phase of the annuity?

MsPeacock

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Re: Protecting Mom from herself
« Reply #3 on: February 25, 2016, 09:08:37 PM »
Would she agree not to touch anything for a year? After losing her husband of many years - this goes for everyone - you want to avoid making major life decisions. Maybe in a year she will reconsider her plans to buy silver. It sounds like she doesn't have a lot of financial knowledge and in that year there might be the opportunity to have her speak w/ a financial advisor (if she won't listen to you) or do some reading, of just generally feel less anxious about her future (a lot has changed for her recently - so anxiety about change may be driving her feeling that she has to do something about finances).

I'm sorry for the loss of your father.