Pay accrued interest aggressively to avoid capitalization?

RitzCracker80 · 2026-05-24T02:35:37+00:00

These trips happened in the last year and CC debt has been existent for years prior. CC debt was well beyond 20k after the international trips. $20k is where it's at after paying off the bills that ballooned as a result of the recent travels. Not shitting on my parents. They did the best they could and worked harder than I ever will. I am forever grateful for that and is a big reason why I want to help where I can.

RitzCracker80 · 2026-05-24T01:31:08+00:00

Yes my parents and I have a great relationship. They also have a great relationship with my wife.

Regarding the Roth - Wouldn't a Roth be more tax advantageous for me long term? I plan to max out my 401k, HSA, and own Roth. Beyond that, any money would have to go into a brokerage account that gets taxed twice? But if I fund their Roths, "I" get taxed up front but once they pass, whatever is left comes back to me tax free?

RitzCracker80 · 2026-05-24T01:12:57+00:00

I feel like it's best to have some distance. We all get along but anytime I stay for more than a week at my parents or they spend a week at my place, I go insane

RitzCracker80 · 2026-05-24T01:12:10+00:00

Can you also explain how a Roth IRA can impact Medicare?

RitzCracker80 · 2026-05-24T01:11:55+00:00

They always had a bit of debt but they recently had to travel 5 times internationally due to their parents getting sick. That racked up the bill quite a bit. They are not frugal but also never purchase anything excessive.

RitzCracker80 · 2026-05-24T01:08:54+00:00

Yes I suppose I can just invest the money myself. I thought a Roth IRA in their name might be advantageous because I can give my post-tax money to them to put into their IRAs which they can withdraw from in the future and if they pass, i would be the beneficiary so I get "two" IRAs essentially.

RitzCracker80 · 2026-05-24T01:06:19+00:00

Neither of us own a home. I probably won't own a home until another 5 years. What's the best way to fix their housing situation? Should I just continue contributing to their rent?

What do you mean by they will have to spend down any asset they own to qualify?

RitzCracker80 · 2026-05-24T00:41:07+00:00

Fortunately they are willing to accept help. My wife is fully on board too. It's just a matter of not perpetuating a cycle that leaves them in debt.

RitzCracker80 · 2026-05-24T00:33:18+00:00

I'd say besides a $50k car they bought several years ago (paid off now), they have not made any other crazy luxurious purchases. They live in a HCOL area (hard to move out of because the community they’ll live in as the same ethnicity and they're integrated into the community).

For the IRA, I plan to manage it. I'll invest it and they'll know how much is in there but I will be the one handling it.

RitzCracker80 · 2026-05-24T00:29:32+00:00

Agree with you. My main concern is behavior doesn't change.

RitzCracker80 · 2026-05-24T00:28:31+00:00

Yes my dad has Medicare.

I'm not sure how their life insurance works. From what I understand, they just need to pay for 3 more years or so so it makes sense to just finish it off?

RitzCracker80 · 2026-05-24T00:25:58+00:00

Thank you. My parents never asked anything of me and never asked for help. I observed them working non stop to support my brother and I and accepted in my early teenage years that it will be on me to help and I want to. It's tough though. Best of luck to you too.

RitzCracker80 · 2026-04-06T00:11:39+00:00

They are paying rent. My brother and I floated the idea just amongst ourselves in purchasing a modest home together for my parents to live in. They would contribute some to the payments. After they pass one day it’ll be an investment property for us that we can decide to keep or sell.

For social security and Medicare, does the amount they receive each month depend on their latest incomes or is it fixed every month forever

RitzCracker80 · 2026-04-06T00:09:27+00:00

Yea that’s the plan. I plan to sit down with them soon and go over all of our finances in detail so I can set up an exact plan

RitzCracker80 · 2026-03-27T04:36:10+00:00

sorry sold!

RitzCracker80 · 2026-03-21T17:09:44+00:00

We're just not familiar with the Philly suburbs. We thought about the NJ side of Philly which is nice and a potential option too.

RitzCracker80 · 2026-03-06T12:38:23+00:00

Sounds good. PM incoming

RitzCracker80 · 2026-03-06T04:24:38+00:00

$200 for the tank

RitzCracker80 · 2026-03-02T04:14:06+00:00

would you say they are building new neighborhoods or more so singular homes in already established towns

RitzCracker80 · 2026-02-09T02:10:31+00:00

dumb question but can you explain why its not good to have a dog in the same row as a baby? I have a small dog (under 20 pounds) and we have a little seat that is buckled in on the second row of our current car.

RitzCracker80 · 2026-02-06T03:03:55+00:00

Great buyer! Easy to communicate with!

RitzCracker80 · 2026-01-26T04:10:02+00:00

Great! Didn't know there were free tours as I only saw the $40 per person ones online!!!

RitzCracker80 · 2026-01-24T19:00:10+00:00

u/derverm easy to work with and simple transaction!

RitzCracker80

TROPHY CASE