What to do with a death benefit?

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tom4018
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Re: What to do with a death benefit?

Postby tom4018 » Mon Aug 06, 2018 2:30 pm

M-5 wrote:
tom4018 wrote:
ddd75 wrote:someone probably paid a fortune for that 5k policy.

my FIL has one for my wife.. i think he pays like 50/month and she will get like 6k when he dies.. i think he's been paying on it for 20 years now.

My wife and I both have million dollar polices only costing us 30/month each. This is where a good financial planner comes into play.

Nothing was paid for this, just a benefit of the retirement system. I am sure it is factored into what someone draws per month though. When she retired it was $2500 and then it doubled but her monthly check didn't change.


WHat would she do ???? that's the best way to go about it. If she would have went on a shopping spree then cash it out and buy something that reminds you of her. If she would have squirreled it away then do that.

That’s a way to look at it that I haven’t yet. Thanks. One thing about posting something is it makes you think of other things.
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Re: What to do with a death benefit?

Postby Bestoutwest » Mon Aug 06, 2018 4:36 pm

tom4018 wrote:
M-5 wrote:
tom4018 wrote:Nothing was paid for this, just a benefit of the retirement system. I am sure it is factored into what someone draws per month though. When she retired it was $2500 and then it doubled but her monthly check didn't change.


WHat would she do ???? that's the best way to go about it. If she would have went on a shopping spree then cash it out and buy something that reminds you of her. If she would have squirreled it away then do that.

That’s a way to look at it that I haven’t yet. Thanks. One thing about posting something is it makes you think of other things.


I was kind of thinking along those same lines. It's nice to pay off debt, and depending on your age adding to retirement can be a good idea. But $4000 to buy something you've always wanted isn't a horrible idea.
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Re: What to do with a death benefit?

Postby shaz » Mon Aug 06, 2018 4:47 pm

Take 4000 and by some cows?
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Re: What to do with a death benefit?

Postby 1982vett » Mon Aug 06, 2018 5:31 pm

shaz wrote:Take 4000 and by some cows?

Yeah....turn it into more obligation and work... :lol:
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Re: What to do with a death benefit?

Postby tom4018 » Mon Aug 06, 2018 6:01 pm

shaz wrote:Take 4000 and by some cows?

The way this year is going I would need to buy hay.
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Re: What to do with a death benefit?

Postby jehosofat » Mon Aug 06, 2018 10:14 pm

I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:
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Re: What to do with a death benefit?

Postby sstterry » Tue Aug 07, 2018 2:09 pm

ddd75 wrote:My wife and I both have million dollar polices only costing us 30/month each. This is where a good financial planner comes into play.

I need the name of your insurance guy!
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Re: What to do with a death benefit?

Postby tom4018 » Tue Aug 07, 2018 3:36 pm

jehosofat wrote:I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:

I asked here because there seems to be some common sense amongst us. $5000 is nothing to most people but to me it is something I want to make good use of. I would give it back if I could have my mother back. Lots of things I wish I would have done differently but it is too late now. Sometimes I wish I was the one that was gone.
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Re: What to do with a death benefit?

Postby sstterry » Tue Aug 07, 2018 4:00 pm

You need to talk to NonTypicalCPA about this. My advice would be not to eat the penalty. You have to pay taxes on top of the 20% (unless you are 59 and 1/2 then there is no penalty, only taxes). That is $1000 you won't get the benefit of watching grow in an IRA.
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Re: What to do with a death benefit?

Postby Son of Butch » Tue Aug 07, 2018 5:58 pm

tom4018 wrote:I asked here because there seems to be some common sense amongst us.
$5000 is nothing to most people but to me it is something I want to make good use of.
I would give it back if I could have my mother back.
Lots of things I wish I would have done differently but it is too late now.

In that case 5k in IRA in a separate investment... so you can track it without mingling with other money.
When the time comes to use it, do so for a special purpose in a manner of remembering and honoring your mother
and let your family members know at that time, this is a gift from mom/grandma for us to enjoy.
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Re: What to do with a death benefit?

Postby Brute 23 » Tue Aug 07, 2018 7:01 pm

Easy... pay off debt. Mathematically... interest on debt really cuts in to your rate of return on retirement investments. From an investment stand point... the market is at an all time high so its not exactly a buyers market. From just a general well being view... not having debt is a greater relief than seeing investments grow, IMO.

Like Dave Ramseys says... pay off the debt. If you regret it a month later you can always go back and get a loan. ;-)
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Re: What to do with a death benefit?

Postby jehosofat » Tue Aug 07, 2018 7:10 pm

Brute 23 wrote:Easy... pay off debt. Mathematically... interest on debt really cuts in to your rate of return on retirement investments. From an investment stand point... the market is at an all time high so its not exactly a buyers market. From just a general well being view... not having debt is a greater relief than seeing investments grow, IMO.

Like Dave Ramseys says... pay off the debt. If you regret it a month later you can always go back and get a loan. ;-)


Smart man talking right here.
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Re: What to do with a death benefit?

Postby TexasBred » Tue Aug 07, 2018 8:18 pm

jehosofat wrote:I wouldn't ask that question on CT unless it was for a million bucks, then you'd need professional advice.

:lol: :lol: :lol:

Look around man. You're surrounded by financial wizards. Just ask them. :lol2:
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