All Forum Posts by: Joe Tomko

I recently learned something and I want to confirm whether or not it is correct.  

My father may end up in a nursing home in the coming months.  I just learned that virtually everything my parents own is suceptible to being used to pay for the nursing home.  They can protect one house and one car.  Personal investments, the Roth IRAs for each of them, and anything else can be tapped to pay the cost before medicaid will chip in.  Even RMDs from traditional IRAs can be tapped.

Does anyone know if there is a way to protect these funds so my mother doesn't become a pauper taking care of my father, then is destitute if/when she needs a home?  There is a five year look back where things can be undone, so I'm looking for a workaround.

As they will be moving to be closer to more family, I suggested using cash from the aforementioned accounts and the full equity in their current house and .buying a much more expensive house. This will protect some wealth. Could they use a HELOC for her living expenses?

It's a little frustrating that they paid all their lives to support others on medicaid and other government programs and now they cannot reap any benefit themselves unless they lose virtually everything they have.

Any thoughts?

I'd put it all in the SD IRA. I use CamaPlan and have been very happy with them. If you know enough to have an SD IRA, then you will likely generate a greater yield with that than with the company 401(k).

I have my SD IRA with Cama Plan and have been very pleased working with them. I've also heard good things about Quest IRA in Houston.

I set my 401(k) up through Anderson Advisors.  Easy process.

@John Jones Are you looking to be an active investor (aware you creating a job for yourself) or a passive investor? Are you only looking at holding property for rent? There are hundreds of different ways to make money in real estate. I personally invest in nonperforming residential first mortgages. Having done a variety of RE investments, notes is my favorite. Buy and hold may not be your best strategy (then again, for you, it may be.) Explore other options before jumping into rentals.

@Larry Hawkins I'm curious about the return you are getting in your 401(k) and in your sdira. Why would you even want to go back to what I presume is a limited number of mutual funds? You should be able to access the very same funds through your IRA, no? These must be some good funds.

@Skye Anderson Skye, I reccomend buying on performance, not on speculation. Who knows if your gentrification will actually take off or if the blight will win the battle?

@Judson Krosney IRA and personal cannot comingle and cannot benefit each other. You cannot do what you propose.

@Bill Drutz Sell your house, buy a triplex or quad. Live in one, rent the others. Cut the cable. Check for financial assistance at school. Dave ramsey's financial peace university may also help.

@Jake Langley I'm new to notes, but I imagine your servicer can tell you your options.

@Marianna Osipenko You seem to have put some thought into this, so I would encourage you to follow your plan. While many start small and scale up, it doesn't mean everyone should. Start big, go bigger. I imagine your background will help you avoid pitfalls.