Skip to main content
No. of Recommendations: 0
Hi Fools, I'm curious to know what you wise ones would do in this siutation.

My parents are 69 and 67 years old, both still working as attorneys, living in a house they own outright, both still in good health, neither is drawing social security yet. My father (the 69 year old) plans on working until he is 100 or dead, whichever comes first, and has a steady income. My mother expects to work for a few more years, but her income is sporadic, as she's a sole practitioner who does a lot of pro bono work.

They are excellent savers, have had IRAs for years, and most of their money is managed by a financial planner. The money does well enough with the planner, but it is HEAVY HEAVY in stocks, especially energy stocks. Nonetheless, my father is content with the planner even though my mother thinks their portfiolio is far too risky for people their age, and I'm not getting between them on that one (though I agree with my mother).

However, my mother recently came into a large amount of money from a case and doesn't want to give it to the planner. She wants to put it somewhere conservative. Their main concern for spending down the road is that health care is so unpredictable and for all they know, they could live to be 100...

CDs are certainly an option, as are T-bills. Anything else you would consider?
Print the post Back To Top
No. of Recommendations: 0
I think you will find the yields on CDs and T-bills so low these days, you probably want to do something better.

A bond ladder comes to mine. See this Investing Wiki article (I wrote it): http://wiki.fool.com/Ladder

In their tax bracket they probably want A or better muni bonds, but there are several choices out there. You get better yield, and hold to maturity. Any stock broker or discount broker can make you an offer.
Print the post Back To Top
No. of Recommendations: 0
Preferred stocks.
Print the post Back To Top
No. of Recommendations: 0
A deferred annuity with a reliable company will double CD returns, will be tax deferred and usually will have some liquidity (often around 10%/year withdrall).

Bill
Print the post Back To Top
No. of Recommendations: 10
Quite frankly, I object to people in their 60s being referred to as "elderly". Cripes.

AM
Print the post Back To Top
No. of Recommendations: 0
Quite frankly, I object to people in their 60s being referred to as "elderly".

How about "senior". I would certainly prefer that to "elderly", especially for someone in their 60's.

As to the OP, I would suggest consideration of opening a Vanguard account investing in one or more conservative funds. Perhaps their Target Retirement Income fund might be appropriate.

Bob
Print the post Back To Top
No. of Recommendations: 0

However, my mother recently came into a large amount of money from a case and doesn't want to give it to the planner. She wants to put it somewhere conservative.


TIPS would be the way to go, in my opinion.

http://www.moolanomy.com/1139/treasury-inflation-protected-s...
Print the post Back To Top
No. of Recommendations: 0
Quite frankly, I object to people in their 60s being referred to as "elderly". Cripes.

I was wondering how long it would take someone to notice and say something.
Print the post Back To Top
No. of Recommendations: 0
….CDs are certainly an option, as are T-bills. Anything else you would consider?....

Fixed income investments are set to be clobbered if interest rates go back up. I would be extremely cautious about any of the longer term fixed income investments.

She might consider using the money to purchase long term care insurance to cover their expenses if they need a nursing home someday if they don’t already have it.

Depending on the housing market in your area she could consider buying a rental property even if she needed to have a property management company take care of it. Lots of pros and cons but with her being an attorney I would think that she would be able to pick up a foreclosure at a good price with less risk than most people could.

Having a small position in precious metal related investments would be worth considering for diversification and as a hedge in case the value of a dollar falls a lot.

Greg
Print the post Back To Top
No. of Recommendations: 0
Depending on the housing market in your area she could consider buying a rental property even if she needed to have a property management company take care of it.
----------------------
I have a nice 3 bedroom condo in Palm Desert for sale. $200k. Brand new 3 ton a/c unit.

http://www.zillow.com/homedetails/304-Tava-Ln-Palm-Desert-CA...

MZ4
Print the post Back To Top
No. of Recommendations: 0
Then pay full price for your coffee at McDonalds.

As for the categorization, my parents are lovin' it.
Print the post Back To Top
No. of Recommendations: 0
Then pay full price for your coffee at McDonalds.

I didn't know McDonalds has an "elderly discount."

As for the categorization, my parents are lovin' it.

How sad.
Print the post Back To Top
No. of Recommendations: 2
This thread is a sad commentary on where society has come when terms like "elder" and "elderly" -- once terms of social respect in a society that used to respect age, experience and wisdom -- are now considered offensive and pejorative...

#29
Print the post Back To Top
No. of Recommendations: 0
This thread is a sad commentary on where society has come when terms like "elder" and "elderly" -- once terms of social respect in a society that used to respect age, experience and wisdom -- are now considered offensive and pejorative...

I'm retired and I'm pretty proud of the respect I get for how I look in skinny jeans, thanks to a lot of time in the gym doing squats and lifting weights. If I were sitting on a porch giving advice to young wippersnappers 30 years my junior I guess I'd want respect for my wisdom and experience.

Sixty really is, after all, the new 40.

P.S. I just got back from 3 weeks in Egypt and Jordan and I'm pretty cranky from the jet lag.
Print the post Back To Top
No. of Recommendations: 1
I didn't know McDonalds has an "elderly discount."

Call it what you will, I think most McDonalds offer at least a senior coffee discount. Small coffee but mine offers free refills. At one time they offered 15% off everything for anyone 55 or over. That didn't last too long.

I retired at 55 and lots of places offered me senior discounts. As more people turned 55 the age started rising --- first to 60, then to 62, then to 65 at many places. I'll be 65 next summer. If they raise the age to 70 I'm going to give up on senior discounts because I refuse to get any older.
Print the post Back To Top
No. of Recommendations: 0
I didn't know McDonalds has an "elderly discount."

Call it what you will, I think most McDonalds offer at least a senior coffee discount. Small coffee but mine offers free refills. At one time they offered 15% off everything for anyone 55 or over. That didn't last too long.

I retired at 55 and lots of places offered me senior discounts. As more people turned 55 the age started rising --- first to 60, then to 62, then to 65 at many places. I'll be 65 next summer. If they raise the age to 70 I'm going to give up on senior discounts because I refuse to get any older.


Dunkin' Donuts has a discount over 55 but not all stores give it -- ask first. Here it's almost $2 for medium. The discount is 10% off on everything. But I don't like their coffee anymore. (An aside: It appears that DD opened a store within one block of almost every single Starbucks in NYC.)

In most of Manhattan there are coffee wagons which sell bagels, donuts, coffee, orange juice, egg sandwiches. Coffee is $1 (for medium) and it's not bitter. They're operational only until sold out which is about 11am.
Print the post Back To Top
No. of Recommendations: 1
"This thread is a sad commentary on where society has come when terms like "elder" and "elderly" -- once terms of social respect in a society that used to respect age, experience and wisdom -- are now considered offensive and pejorative...

#29 "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Everyone seems to be offended by something.
But each individual chooses their response
- and each individual may choose to accept
that offense is not always the intent.

Howie52
Unless you are reading a post from PA
Print the post Back To Top