Although the person I'll reference in this study is fictional (I'll call her Mary), her circumstances are certainly not. Let's take a look at Mary's financial situation:
Mary is a widow, and her husband Bud passed away five years ago. Her financial situation is still very similar to what it was before Bud died.
She has $350,000 in a brokerage account, which is an IRA, and another $50,000 in bank CD's. She has an accountant who does her taxes, a financial advisor from her bank, and an attorney who has helped her prepare legal documents, such as her will. She has no trusts. Her sources of income are social security, a survivors pension from Bud, and a 4% drawdown each year from her IRA.
One afternoon Mary has a stroke. She loses the ability to speak and all mobility.