Forum Thread

Elderly dad selling house 200k profit..how to secure invest

aaba78 5,121 1,364 June 20, 2016 at 10:54 AM
Deal
Score
0
2,500 Views

Thread Details

Last Edited by aaba78 June 24, 2016 at 09:19 PM
a little background my dad is getting up there in age over 67 so we have to manage his finances directly he sold his house and is about to get over 200k profit from sale...he gets 1100 a month from Social Security which he can live off easily..but what should we do with the 200k..were not money managers but we like the idea of putting somewhere where it gets a good rate of return and forgetting about it unless he needs some cash then will dip into it..

what are some options

he has no debt no obligations his expenses are minimal he lives a frugal lifestyle

21 Comments

1 2

Sign up for a Slickdeals account to remove this ad.

Joined Jan 2004
L10: Grand Master
14,922 Posts
1,093 Reputation
#2
Quote from aaba78 View Post :
a little background my dad is getting up there in age over 67 so we have to manage his finances directly he sold his house and is about to get over 175k profit from sale...he gets 1100 a month from Social Security which he can live off easily..but what should we do with the 175-200k..were not money managers but we like the idea of putting somewhere where it gets a good rate of return and forgetting about it unless he needs some cash then will dip into it..

what are some options

he has no debt no obligations his expenses are minimal he lives a frugal lifestyle
I am not aware of any place that offers a good rate of return for $ you can just put it and forget it, not to mention keep it safe as typically the older you are the more safe your investments should be.

If you find any, let us know. I am sure a lot of us wouldn't mind doing the same Wink
Reply Helpful Comment? 0 0
Joined Aug 2010
L9: Master
5,121 Posts
1,364 Reputation
Original Poster
#3
Quote from LivninSC View Post :
I am not aware of any place that offers a good rate of return for $ you can just put it and forget it, not to mention keep it safe as typically the older you are the more safe your investments should be.

If you find any, let us know. I am sure a lot of us wouldn't mind doing the same Wink
i mean savings acount that get 1% a year that would be 2k a year..is this the best bet
Reply Helpful Comment? 0 0
#4
Quote from aaba78 View Post :
i mean savings acount that get 1% a year that would be 2k a year..is this the best bet
If you want a certain return and liquidity yes, but the question is far more complicated and depends a lot on how he will need the money in the future.

If the money is simply a nest egg for future generations it can be broadly invested in equities. If it's his reserve fund for retirement, it needs to be far more cautiously invested. What happens if his social security isn't enough? Does that $1100/mo cover his housing and medical costs too (since he sold his house afterall...)?

It's a big enough issue that it wouldn't hurt to speak with a financial advisor (a good one) and get a plan together. You don't want to do something stupid and blow through the money with poor investments, but if he lives another 20 years then a savings account may be a poor holder of value. Some kind of balanced distribution between low-cost stock funds, bond funds, and cash is probably a good starting place.
Reply Helpful Comment? 0 0
#5
Invest in low-cost index fund that tracks SP500 index and forget about it. That's what Warren said.
http://www.businessinsider.com/wa...dex-2014-3

I hope your dad has already had the long term care insurance in place. I am bearish about the stock market for the next four years. Considering his age and health, the long term care insurance plus the rest in the money market account may be a better investment.
Reply Helpful Comment? 0 0
#6
See a lawyer about a trust. Need protection against medicare taking house in event of an illness.
Reply Helpful Comment? 0 0
Joined Aug 2010
L9: Master
5,121 Posts
1,364 Reputation
Original Poster
#7
Quote from house kitten View Post :
See a lawyer about a trust. Need protection against medicare taking house in event of an illness.
why would medicare take house? i dont follow
Reply Helpful Comment? 0 0
#8
Quote from aaba78 View Post :
why would medicare take house? i dont follow
If he should get chronically ill and need a nursing home he would have to spend down that money until he could get medicaid. If the house is in a trust medicaid cannot touch it.

Something most people do not think of all savings and investments can be gone in a heartbeat.

Learned this the hard way. My dad had a stoke and had to go into nursing home. Medicare pays 100 days and after that you are responsible. You can not go on medicaid until all savings have been spent. My dad even had policies he took out on a kids as infants and had cash value. He had to cash everyone of them in.

My DH and I now have a irrevocable trust with the house in in as well as assets you wish to leave to others and not be forced to sell.
Reply Helpful Comment? 0 0
Last edited by house kitten June 21, 2016 at 09:15 AM

Sign up for a Slickdeals account to remove this ad.

Joined Aug 2010
L9: Master
5,121 Posts
1,364 Reputation
Original Poster
#9
Quote from house kitten View Post :
If he should get chronically ill and need a nursing home he would have to spend down that money until he could get medicaid. If the house is in a trust medicaid cannot touch it.

Something most people do not think of all savings and investments can be gone in a heartbeat.

Learned this the hard way. My dad had a stoke and had to go into nursing home. Medicare pays 100 days and after that you are responsible. You can not go on medicaid until all savings have been spent. My dad even had policies he took out on a kids as infants and had cash value. He had to cash everyone of them in.

My DH and I now have a irrevocable trust with the house in in as well as assets you wish to leave to others and not be forced to sell.
my dad is going most likely going to another country (in south america)to retire and live...i was thinking of transferring the funds into an account under my name to be manged by me or siblings most likley me (were not those type of kids that fight over money so no trust issues there)...should he pass nothing anyone can do right?

like i said ss in another country goes along way we hope
Reply Helpful Comment? 0 0
Last edited by aaba78 June 21, 2016 at 09:31 AM
#10
Quote from aaba78 View Post :
my dad is going most likely going to another country (in south america)to retire and live...i was thinking of transferring the funds into an account under my name to be manged by me or siblings most likley me (were not those type of kids that fight over money so no trust issues there)...should he pass nothing anyone can do right?

like i said ss in another country goes along way we hope
I would not put it in your name as you will be responsible for taxes and yes, I speak from experience. Your Dad can do what he wants with HIS money and make you or your siblings beneficiaries. That way everything is under his control.

If you have an accident or hurt someone that money is now available if you should get sued. Careful how you manage his money.
Reply Helpful Comment? 0 0
Joined Aug 2010
L9: Master
5,121 Posts
1,364 Reputation
Original Poster
#11
Quote from house kitten View Post :
I would not put it in your name as you will be responsible for taxes and yes, I speak from experience. Your Dad can do what he wants with HIS money and make you or your siblings beneficiaries. That way everything is under his control.

If you have an accident or hurt someone that money is now available if you should get sued. Careful how you manage his money.
Thats a good point about taxes. my mother passed a few years ago and had like 10k in her bank account..i did the right thing and notified bank but they said we have to freeze account i had to go to court to release funds and the court charged me like $500 it was a pain in the butt had to wait like 2 months..so this time im trying to avoid that..

i told my siblings i shouldve just transferred the money out when it happened and they the bank wouldn't have known better instead of telling the bank anything. im trying to avoid that this time somehow.

can my dad add just add me to his bank account or should i just leave as is and when time comes move money out
Reply Helpful Comment? 0 0
#12
Quote from aaba78 View Post :
Thats a good point about taxes. my mother passed a few years ago and had like 10k in her bank account..i did the right thing and notified bank but they said we have to freeze account i had to go to court to release funds and the court charged me like $500 it was a pain in the butt had to wait like 2 months..so this time im trying to avoid that..

i told my siblings i shouldve just transferred the money out when it happened and they the bank wouldn't have known better instead of telling the bank anything. im trying to avoid that this time somehow.

can my dad add just add me to his bank account or should i just leave as is and when time comes move money out
Not sure. That has to be your call. If you are joint tenants that means the money can be used to pay any judgements against you. If you name was on your mom's account you are an owner and would not have had to go through that expense.
Reply Helpful Comment? 0 0
#13
I wouldn't necessarily consider "over 67" as "elderly". You don't mention that he has any physical or mental restrictions and it is not clear to me why you need to manage his money for him. I would get a disinterested third party (or lawyer) involved to take care of his finances if he is not able to himself.
Reply Helpful Comment? 0 0
#14
crown vic, H&B wait wrong site
Reply Helpful Comment? 0 0
Joined Aug 2010
L9: Master
5,121 Posts
1,364 Reputation
Original Poster
#15
Quote from koelreutaria View Post :
I wouldn't necessarily consider "over 67" as "elderly". You don't mention that he has any physical or mental restrictions and it is not clear to me why you need to manage his money for him. I would get a disinterested third party (or lawyer) involved to take care of his finances if he is not able to himself.
hes 72 well hes no spring chicken..he doesnt want to pay anyone i basically mange it now from a distance buts its a smaller amount...about 5k..he doesnt speak english..so i make sure all his bills are paid once his ss gets Deposited. I set up many of his bills on auto pay. he literally has the same 3 bills every month(electric, water, and directtv) for him..hes not good with computers and has an old flip phone so you get the idea...he does know how to take money out of an atm...

he wants to go back to his country and spend his last years over there
Reply Helpful Comment? 0 0
Last edited by aaba78 June 23, 2016 at 05:22 PM
Page 1 of 2
1 2
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard