- The Challenge: Providing for parents that are resistant to assistance.
- The Solution: Joint and Survivor Immediate Annuity
Anthony DiPaolo grew up in a poor New York neighborhood but he was happy as a child as he had a used computer his father had purchased for him that allowed him to go into his own world. After working his way through college, Anthony went to work for a Silicon Valley start-up. He was able to grow and develop his love for computers while working for a company that grew rapidly and gave out stock options. Twenty-five years later Anthony at the age of 47 had accumulated a net worth of ten million as his company was sold and his stock options paid out.
Anthony would visit his parents at least once per year and would ask them if they needed anything. Each time they would tell him they were fine. On a recent trip home Anthony talked to his cousin who would check in on his parents and his cousin told him that his parents really had very little money and were not eating right as they tried to stretch their meager social security benefits. His cousin said they were too proud to ask Anthony for money.
Anthony called his financial advisor back in California and asked him what he could do for his parents. He had offered them money before but they always refused. Anthony‘s advisor told him he could purchase a Joint and Survivor Immediate Annuity for his parents that would provide them sufficient funds to meet their lifestyle needs.
It was money they could not outlive and they would not have to ask Anthony for money. Anthony and his agent went over the application with his parents, had them sign as annuitants, and explained to his parents that they would soon begin receiving checks each month from an insurance company that would pay for their food, clothing, housing and entertainment.
Anthony’s parents were extremely proud people and did not want to ask their son to take care of them but by providing his parents a monthly income that they needed, he eliminated the need for them to ask him for money. Each month they would have enough money to meet all of their needs. Anthony could go home knowing that his parents would have the money to live on while preserving his parents pride in not having to ask their child for money.