My father passed away in May of 2017. My mom, 64, lives really close to me and my brother. She is in great health. She and my dad split the financials and she understands how much she has and what she needs. She is frugal, but not Mustachianian. What I mean by that is that she and my dad have always had a financial planner who looks after there money. They took the planner's advice on the products that he sold. Now that my dad is gone my mom has an opportunity to change what those investments look like and she is willing to take my advice over the planner's if it makes sense to her. The good news is is that if she just stays with what she has she will probably be fine and if she changes she could grow her wealth with low risk. Her current income from pension and SS is much more than she needs to live on.
Here is what here numbers look like.
Pension that is guaranteed forever: 2800 after tax and health insurance which is also guaranteed through pension
Social Security: 950 after tax
IRA 149,600
403b #1 266,683 Income lock annuity through VALIC
403b #2 27,152 invested in VALIC mutual funds
House is paid for and has new almost everything.
Car is paid for and has plenty of life left in it.
My brother and I are committed to having her stay in her house or with us as long as possible as she ages.
Questions:
Should she just get out of the annuity and combine the two 403b accounts and invest in an index fund herself?
The financial planner is asking her to get this life insurance policy that she can draw on the payout to pay for medical expenses. This is more expensive than her current policy that is for 100,000 and the premium does not go up until 2021. Advice?
How can she safely grow this money?
Do we just keep on with the financial planner and have me and my crazy mustachian ways not get involved?