Author Topic: $2m Settlement Problem  (Read 2404 times)

Filsilva

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$2m Settlement Problem
« on: June 24, 2012, 08:06:45 PM »
http://www.moneyville.ca/article/1214204--divorcee-s-dilemma-how-to-handle-2m-settlementdivorcee-s-dilemma-how-to-handle-2m-settlement?bn=1

This is in the Moneyville Makeover section.

"Car loan and operating costs $8,664, home costs $7,764, critical illness insurance $6,312, property taxes $5,400, fee for guaranteed minimum withdrawal benefit, $5,137, groceries $2,880, personal care $2,700, travel $2,400, gifts and charity $2,400, medical insurance $1,897, income tax zero, other spending and savings $21,064. Total: $61,481"

She spends over $8000 a year on medical/critical illness insurance. In a province with free health care.

She has bought 47 purses.

I wonder how long her money would last without a plan.

I love how they say her situation is a "problem". A problem the average person would love to have.

gooki

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Re: $2m Settlement Problem
« Reply #1 on: June 24, 2012, 09:03:36 PM »
She's getting screwed over on that critical illness cover.

What good is an extra $250,000 when you're critical ill and already have access to over $1,000,000 at any time?

Within 20 years she will have paid $126,000 in fees (assuming costs don't rise), and that's not even counting the the missed capital gain.

Quote from: moneyville date=1340590005
"Leesa has adjusted her spending to stay within her income. To further protect Leesa from a shock to her standard of living, Andreana suggested she buy $250,000 of critical illness insurance. She suggested long-term disability coverage, too, but Leesa did not qualify."...

...critical illness insurance $6,312
« Last Edit: June 24, 2012, 09:05:19 PM by gooki »