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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: Mom's Investment Date: 1/1/2000 8:36 PM
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My mother is 73 and is living comfortably off her social security and retirement. She has sold her home and wants me
to invest $240,000 for her. It is likely she may need a nursing home in the next 2-4 years as she has a progressive
condition.

I have been advised to place 2 years cost of a nursing home into a money market account and place the remaining into
a total stock market index fund (50%) and a total bond index fund (50%).

Any other thoughts out there would be greatly appreciated. My primary concern is to have her resources available to
her for a nursing home when the need arises and I am wondering if the above scenario is too risky.


I consider the 50% in bonds to risky.

You do not mention how much she will need over SS & pension. I would look at this income as if it came from a fixed income portfolio. The two years MM is good. I would put the rest in several inxed funds or QQQ , DJI , SPY etc. If you feel that is to risky up the money market cash another year or two. Read up on safe withdrawl rates. See the retire early home page board. http://boards.fool.com/Messages.asp?id=1380025000284000
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