Ahhhhhh. Since my anonymity has long since been compromised . . . an embarrassing topic. What do you do when you see an elderly parent overspending?
My mother is 81. My father, who handled all the money, died almost three years ago, during the depths of the economic meltdown. Three days after he died, my mother got an accountant (a neighbor). Four days after that, she put half her money into the hands of an advisor, recommended by the accountant. The other half is in TIAA-CREF. The advisor has been urging her to take that money out and let him manage it. The advisor has not told either her or me (I asked him directly) how he is compensated. He did tell me that he and his wife made $700,000 in 2007.
Anyway, my mother has been totally transparent about her assets. I noticed that she is taking more than 10% from the TIAA account. I told her that is not a sustainable withdrawal rate, even for an 81 year old.
I don't want to go into the details of her spending at the moment. I did get her to call someone at TIAA, who told her that her money would run out in 9 years.
I guess it's good that I'm pathologically frugal! My mother gets angry at me as the bearer of bad news. My un-frugal sibling said that the advisor seems like a great guy!
So...what does one do when one sees an elderly parent overspending? Any advice would be appreciated.