Money Irresponsibility - Needs - Wants

AlexP... can you all sit around as a family and explain to your brother that whilst your parents were happy to help him out of a pickle, that was 15 years ago and they really need to get maximum rent from the house he is living in in order to fund their retirement.

Why are your parents continuing to fund him? Are they scared that he will turn away from them?

Believe me, I have a sponge for an oldest brother who regularly abused my mother in the same phone call that he was asking for money. Whilst one friend of my mother called her "an enabler" it was much more complicated than that. My mother (no longer with us) gave him money to help him to live in a different city. She didn't give him cash but would pay his vehicle rego, gap payments for dental, things like that.

She was worried that if he couldn't afford to live in a different city, he would come back to Brisbane and she very much didn't want that. She was protecting all of us from having to deal with him. I never want to see him again for what he has done to our family but once my father is gone, that is what I have to look forward to, administering dad's estate which involves looking after him.
 
why isn't he paying rent? shouldn't he be grateful and pay them back? parents have to take action.

If you read the thread - he's been living rent free for 15 years with no attempt to pay anything ... yet is happy to buy unrequired doodads. That is Alex's bug bear.

To throw wood on the fire - the parents are close to retirement, have to sell the rental to pay off their ppor mortgage, and will still not have enough to retire on so the dad is talking about continuing to work part time.
 
Putting it all on the brother is a cop out. The parents are equally to blame for this situation as he is, as they have allowed it to continue for this long. They made their choice, now they have to live with it.
 
I was over at mum and dads the other night and there was an article in the sunday times about women and their super. I commented to mum that this doesn't sound like much. I asked her how much super she has and she says about $350 K and dad has $150 K. I said what will you do when it runs out in 5 - 10 years time. She shrugged and pretty much said she didnt know. She also thought she would have enough/wanted enough to be able to live on $50 K pa. I said you might have to work part time to supplement your income.

Also said that they need to talk to some kind of financial planner to organise their retirement strategy. One of the topics we discussed was whether they should be paying maximum to pay off their PPOR at this stage 5 years out from retirement or instead use that money to salary sacrfice into super.

I went home that night really worried about them. I couldn't get to sleep for a couple of hours thinking about how they will cope!

How long will $500 K super last?? Do you think it could last for 10 years. wtf do they do when it runs out?? Go on a pension... oh f*** thats not good, but i guess it could be worse. At least they would own their own home.

The other idea i mentioned to mum was that they could always downgrade to a small villa. Sell their $750 K property they live in and buy a $350 K villa. Thats another $400 K they could live on.

Mum and dad said they wouldn't mind working a bit whilst retired because they say they'd get bored and wouldn't know what to do with themselves. This would be ok but if they get sick and cant work then this option is out.

Anyway i'll be seeing my sister for dinner next week. I want to bring up my worries about mum and dad with her.

Oh also i said to mum you know that when you are retired you wont be able to afford to help my brother out. she agreed that she wouldn't be able to.

Bottom line is my parents need to get off their butts and focus on their retirement strategy and what they are going to do. They have left this till the very last minute. arrggh. Did they not realise that $500 K would not be enough to live on. What if they live 20 years after they have retired. The women of my family always live to an old age.

I wander what the average joe will live on in super once they have retired. Mum and dad are in a very bad position i think. Looks like I'll have to help out financially along with my sister. I cant see my brother ever helping financially.
 
AlexP... can you all sit around as a family and explain to your brother that whilst your parents were happy to help him out of a pickle, that was 15 years ago and they really need to get maximum rent from the house he is living in in order to fund their retirement.

Why are your parents continuing to fund him? Are they scared that he will turn away from them?

I wish i knew. I have no idea!! They are totally nuts!!!!! :confused:
 
There's always a reverse mortgage. I know someone that bought new car and did an overseas holiday last year on one (much to the disgust of the daughter :rolleyes:).
 
APK,
I think you need to step back, and allow your parents to worry about their own finances. They are adults.
$500k is plenty. At 6% pa that is still $30k a year in interest.

There is always the reverse mortgage...if they didn't want to downsize. Of course this would lessen you and your siblings inheritence.

They can sell their $750k home, and rent a property from you.
 
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There's always a reverse mortgage. I know someone that bought new car and did an overseas holiday last year on one (much to the disgust of the daughter :rolleyes:).

I mentioned a reverse mortgage could also be an option but theres no way they will do it because they want to leave their children an inheritance :eek: :rolleyes: I would not mind one little bit if they took out a reverse mortgage. It doesn't bother me if i dont get an inheritance from them. They are very steadfast that they will leave an inheritance though. Also they hate having debt. Mum said she came from a generation that believed all debt was bad for them and they like to get rid of it as quickly as possible.

If they took out the reverse mortgage its the children who end up paying off the mortgage in the end isnt it. They dont want that. But thanks for the idea.

The more I look at their situation actually the better i feel about my financial situation. I have set myself a goal of having at least 5 fully paid off properties to fund my retirement. Also I will have some super to go with that. I should be pretty comfortable on this amount of money. I wonder if it will be enough to help my parents out when they have run out of cash. Maybe I should aim for 7 fully paid off properties.
 
respect works bothways

with all due respect i think your parents have done well, maybe ou should learn a little more about finaces before critizing them in a public forum

500,000 in super will get them about 30,000 a year in earnings.

a property paid off that your brother is living in. what is that worth. Say 300000, if so they have 800,000 in investment assets availiable. if that earnt say 6% income would be 48k before any capital drawdown.

also they would prob qualify for a prt pension, thats would be good to get the health card

also your brother living rent free - so what this is their choice, just like if they choose to give you a loan or something,
 
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