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Lessons from Therapy: Day #1

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I just had my first therapy session this week and I’m happy to say that it went better than I’d expected! I was nervous about whether we would “click” and be a good fit, but we really gelled in terms of personalities and it felt like I was chatting with a friend (albeit a friend I’m paying to listen to me. heh).

I’m only one session deep at this point so, obviously, this person doesn’t know all of my “issues” yet. We mostly focused on my Dad’s health issues (and the time it takes to deal with said health issues – there’s a literal crisis every week) for my first session. And while I don’t plan to divulge all the inner details of my therapy with everyone reading (sorry!), I do want to touch on some things that come up as they relate to my finances.

For instance…my therapist suggested we hire a nanny/house-keeper. She got that one of the key stressors in my life right now revolves around time. Lack of it, to be precise. So she suggested I look into agencies where I could hire someone to come and help with the kids, drive to/from school if needed, do laundry, clean, cook, etc. etc. etc.

omg – that would cost a small fortune, right?

But even though I really don’t think that’s feasible, I kind of liked the idea of trying to hire out some help. I started thinking about “what if we hire a cleaning service to come monthly?” That’s not something I’ve ever done in the past. Never. But, given our imminent move (and likely to a place that’s a little bit larger), coupled with the fact that we’re already always behind on cleaning, it does relieve a good bit of stress to think that – at least once a month – our house could be thoroughly cleaned.

Again – the therapist doesn’t know all my “issues” yet, and we haven’t even touched on finances, financial goals, financial stressors, etc. etc. etc. But seriously….maybe not a terrible idea if it helps keep my mental health in check???

What do you guys think? Is it silly to even be considering hiring a cleaning service when we’re still so entrenched in our debt payoff? Or could I think of it as one of the costs I pay to have such a great income (meaning – since I’m working 2 jobs and making more money than I’ve ever made before, I have to make some trade-offs in other areas. Like, paying for cleaning help so I can spend that time focused on work)??? Thoughts???


Under Contract

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We are now officially under contract!!!

Not hubs & I (we still haven’t even started house-hunting, but plan to start in August!! Can’t wait!!!) – my dad’s Utah house!

After receiving a couple competing offers, we accepted one that we felt was more than fair (it’s actually over our listed asking-price). We’ve already completed inspection and all the requested repairs are super minor, so we’re paying a handyman to get it all fixed up.

At this point, the last hurdles are in regard to the buyer’s financing. Our realtor has been in contact with the lender and believes the loan will be funded without a problem. Given that the buying price is above the list price (and above the comparables our realtor pulled), we’re holding our breath and crossing our fingers that the appraisal comes in high enough to cover it. Fortunately, our realtor is a rock star and has made up a whole list of home improvements for the inspector and feels confident that the appraisal shouldn’t be a problem.

If all works out with buyer’s financing, we are set to close on August 15th! Super pumped!

Initially, we were thinking we wouldn’t make too much off the sale of this home. Remember, both my siblings were in favor of renting it instead of selling due to this reason.

But given our higher-than-expected sale price, we should stand to net nearly $100,000!!! Not too shabby!

The next question is what to do with the money.

My dad does have a decent-sized net worth but, to date, we’ve done next-to-nothing with his investments. Everything is still in the original investment accounts he selected and has not been touched. We want to be somewhat conservative because my dad is legally disabled and will never be able to work again (if interested, read more about his condition here). His physicians have said that his illness tends to have a life expectancy of 2-20 years. If he lives another 20 years, he could easily burn through all of his savings. He’s already in assisted living and his care is incredibly expensive. So we really need to be smart and manage his money wisely so that costs of his care don’t end up falling on the shoulders of my siblings and me.

I’m a fan of pretty boring investment strategies. Mutual funds and such. My brother has talked about perhaps investing in real estate back in the Austin area (which makes it less complicated and risky than an out-of-state rental). He’s even thrown out the idea of establishing an LLC for a rental property so my dad’s other assets are protected. Depending on cost, we could possibly pay for a rental with liquid cash without needing to withdraw from current investments (the alternative would be putting a large amount down and taking out a small mortgage).

I’m open to various ideas, but I’m also a fan of EASY. Taking over my dad’s affairs has been incredibly time-consuming and, frankly, none of us has time for it. Meeting with an investment advisor once or twice a year is infinitely easier than dealing with rentals and such. That being said, in the past year that we’ve been in charge of my dad’s finances, his investments really haven’t performed great. He’s averaged about a 4% rate of return. I’d like to see closer to an 8-10% return, if at all possible. At only a 4% rate of return, we’re eventually going to eat into his nest egg. Fortunately, he had enough cash in the bank that we haven’t touched any investments at this point but eventually the liquid money will dry up and we’ll have no other option but to raid his investments in order to pay for his care.

What do you all think? If you were charged with caring for a parent’s estate, what types of investments might you make? What are your thoughts of investing in mutual funds versus investing in real estate?

Another possibility is to still invest in IRAs. My dad technically has an “earned income” because he received a generous severance package from his previous employer before having to leave due to his health issues (it’s paid out monthly for another year still). So would it be better to actually fund a retirement account versus buying mutual funds? Or is it better to keep the money more liquid than in retirement or real estate? Something like mutual funds that are easier to sell and claim the cash?? My dad is 60, by the way. I’d value any and all input you may have!