My (step)dad works for a defense contractor in Arizona. He has recently been diagnosed with Stage IV cancer, and could survive 6 months with no treatment, or 3-4 years with treatment. No cure.
My mom is complicated. There is a lot of backstory that really doesn't matter much, but, she has not handled money in a long time. Even what my dad gives her for spending money gets wiped out quickly on stupid stuff. She is an emotional spender. She is "retired" or "disabled" (depends on the day) and receives some type of social security. I don't think it is SSDI, though.
My dad has been with this defense contractor for almost 35 years. He has a pension, a 401k, and a large life insurance policy through the employer. I recently sat down with him and glossed over finances, final wishes, etc.
Pension - At first, I recommended retiring as soon as possible so that he could at least try to enjoy himself and get some benefit out of working so hard over the years. Then I spent time with my mother, and I think I get why he wants to keep working. It gives him purpose and keeps him out of the house. He thinks that they cannot afford to live on his pension. They would still need to pay health insurance for both parents. Mother turns 65 next year.
401K - He has a 401k loan out now, that will be paid off in September. It isn't a very big loan.
Life Insurance - He has a life insurance policy through his employer that is worth over $500k in the event of his death. He thinks he still has to be working there. He thinks that he pays some money toward it out of each check. I told him he needs to find out if he can keep the policy if he retires.
I guess I am looking for some guidance on this. My mother absolutely should not be given any type of lump sum payout when he dies. I don't know how any of this works, and I would like to guide my dad without it making my mother think I am "after their money." She has already made this comment when my dad gave me something from their house recently.
Submitted May 09, 2018 at 06:27PM by azpensionthrowaway https://ift.tt/2rvjBge
