I’m 68 years old, my husband is terminally ill and his $3 million fortune is going to his son. I want to spend the rest of the day traveling — will I have enough money?

The husband received a Social Security payment before we met. We’ve always lived debt-free and I have a nice car in 2020. While I live a modest lifestyle, his health has prevented us from enjoying a vacation for eight years. I look forward to traveling more in the future. My husband is terminally ill and may only live another year or two. His medical bills are not my responsibility.

In 2019, we build a new house. While its exact value is unknown, I will likely pay around $800,000 for this property, hoping that I will buy a smaller home when he passes away.

I get Social Security and a pension, and now collect about $20,000 in total annually. I’m an aspiring saver and have now hit around $350,000, making a lot of money out of my mutual funds. Other stocks are worth about $20,000 and I have a $457 account worth $65,000. Right now I have $60,000 in savings and $20,000 in checks.

I’ve never removed a dime from my investments and doubt that much change will be needed to do this until I’m on my own. My husband pays our living expenses now. My goal is to enjoy the rest of my life, leaving as much money as possible for my four siblings.

That sounds pretty good to me, but I’ve taken the risk of keeping my savings in stocks to earn a real annualized return of more than 15% over the past decade. And I don’t have long-term care insurance.

Can I expect to live to the fullest in good financial standing?

Dear reader,

I’m sorry to hear about your husband’s illness. It was a difficult experience to live through. I’m glad to see you’re planning your finances after he passes away – it will save you headaches and heartache, and give you stability and security into your old age .

To get the answer, you’ll have to do some serious analysis of current and projected future costs. However, keep in mind that things can change in a few years or even a year, so be flexible when planning your finances for the future.

First, develop a plan (some might call it a budget), says Robert Gilliland, managing director and senior wealth advisor at Concenture Wealth Management. Consider every possible cost you predict after your husband’s death, and take into account inflationary also. You can break these costs down into short-term amounts, such as one to five years, medium-term, six to 10 years, and long-term or more than 10 years. Include your expected housing costs and maybe plan for whether you stay in your current home or find a smaller one. Also, think about health care, which is a potentially big expense in any retiree’s budget; utilities; emergency expenses; occasional meals or entertainment; and such.

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Also read: We’re in our late 50s and retired with less than $1 million: ‘Do I jump the gun?’

After completing this analysis, see what you expected source of income to be. You mentioned Social Security and pensions, and you can make regular withdrawals from your investments. Compare your income with your expenses. “Once you have that number, you can determine a ‘reasonable’ withdrawal rate for the property to determine how much excess is available for travel,” Gilliland said.

A note on your investments: Advisors use this grouping approach with investments, in which case it is common to see medium and long term needs invested with more risk. . However, you mention that your savings are currently at great risk, and that you should consider speaking with a financial advisor — even someone with your money kept — to see if it’s worth it. Is the asset allocation right for you? If you’re living on a fixed income, you can’t afford to lose too much in your portfolio. Diversification and proper allocation will be the key to your success. “Ultimately, being able to make sure there was enough money to meet her needs was paramount,” Gilliland said.

Also, contact the Social Security Administration office to start planning for other potential benefits you may be eligible for, such as widow benefit, Jude Boudreaux, a certified financial planner and partner at the Planning Center. As a result, you may even get more money each month, depending on whether your survivor benefits outweigh your personal benefits, and it doesn’t hurt to begin to understand benefits or numbers right now. You may be put on hold by the Social Security Administration for hours when you call, but it will be worth it. (Here is more information about benefits are alive from the SSA.)

Check out the MarketWatch column Retirement Secrets for helpful tips for your own retirement savings journey.

You mentioned that you don’t have long-term care insurance. This can be very expensive, especially when you’re a little older than the typical “ideal” candidate (advisors often recommend people start looking at long-term care insurance in their 50s). ). This may make sense for you so you don’t have to look up some policies, but know that there are other options available to you as well, such as a combination policy that can provide long-term care for you and may have a death benefit for you. siblings. Some annuities have long-term care chaperones, though it’s a good idea to double-check these products before joining. (This is comprehensive guide about long-term care insurance for you to research.)

This isn’t financial advice, but it’s still important: Be active and take your health seriously. Hike, try to maintain a healthy diet and stay in touch with loved ones – now and after your husband passes away. These daily activities make a world of difference to one’s older years.

Also see: The millions you save for retirement are not worth much if you are not healthy enough to enjoy it

Here are a few other suggestions. Gilliland said he always recommends taking a year before deciding whether or not to move after the loss of a partner, because that period is very emotional and people can make decisions that they will eventually make. regret.

You may want to start doing some calculations now and talk to your husband for his opinion. You mentioned a prenuptial agreement, but those don’t stop someone from giving gifts to their spouse during the marriage period. If the trust you are referring to is a related trust, or revocable trust, your husband can gift you some money now without tax consequences when he he’s still alive. Of course, this can sound like a difficult situation and this suggestion is not meant to stir up any drama between you, your husband, and his son, but asking your husband what he thinks is a good idea. no harm, Boudreaux said. “It’s worth exploring.”

In the end, you seem to be very concerned about your finances and that will certainly help you later on. Just try to think about everything you’ll probably need, in terms of money and other things, so you don’t let your guard down when your husband dies. And make sure you and him have lots of conversations about the things he thinks you should know after he’s gone — anything from bank account passwords to small tasks he normally does. He can be in charge of the house.

I wish you the best.

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