MIL house sale proceeds- how to invest?

[rfuerst911sc]

So my mother in laws house closing is tomorrow , she has moved into an assisted living facility by us . She will clear about 100k from the sale of the house . We want to invest the money into an account that is safe/insured . Thinking of a money market account at a bank with FDIC coverage.

The goal is to allow some growth but be quickly available if needed for any expenses outside of the norm . The assisted living facility is paid out of her pension/SS and spouse of war veteran assistance . So basically ALL of her week to week expenses are taken care of .She is 89 years old .

Any thoughts on our investment strategy ? We really don't want to deal with market volitility at her age . Her " nest egg " is 25k plus this 100k. The 25k is currently invested with a financial advisor in NY where she moved from . She is now living in Georgia near us . Any investment advice is appreciated . Thanks in advance .

[DonDavis]

Originally Posted by rfuerst911sc

...We want to invest the money into an account that is safe/insured . Thinking of a money market account at a bank with FDIC coverage....

...Her " nest egg " is 25k plus this 100k. The 25k is currently invested with a financial advisor in NY where she moved from . She is now living in Georgia near us . Any investment advice is appreciated . Thanks in advance .

Earning decent money short term can be tough.

Like you said, probably best to just park it in a Money Market for easy access.

Regarding the 25k with someone in NY, I would feel better having someone much, much closer be the advisor.

No affiliation, but a good place to start.

https://www.ramseysolutions.com/retirement/smartvestor?snid=trusted-pros.retirement-and-investing.smartvestor-pros

[Seahawk]

Just to be sure, do you have, what in Maryland is called "Guardian of the Person" and "Guardian of Property"?

We have gone through this with my MIL and my wife is both of those things so she has the power to make financial and personal decisions.

My wife's brother is advisory only.

I think this is imperative. The bookkeeping requirements in Maryland are actually very detailed for these type of arrangements.

Protect yourself legally is my only advice on this thread.

I have zero involvement in any of my wife's decisions with regard to her Mother.

[flatbutt]

Originally Posted by rfuerst911sc

So my mother in laws house closing is tomorrow , she has moved into an assisted living facility by us . She will clear about 100k from the sale of the house . We want to invest the money into an account that is safe/insured . Thinking of a money market account at a bank with FDIC coverage.

The goal is to allow some growth but be quickly available if needed for any expenses outside of the norm . The assisted living facility is paid out of her pension/SS and spouse of war veteran assistance . So basically ALL of her week to week expenses are taken care of .She is 89 years old .

Any thoughts on our investment strategy ? We really don't want to deal with market volitility at her age . Her " nest egg " is 25k plus this 100k. The 25k is currently invested with a financial advisor in NY where she moved from . She is now living in Georgia near us . Any investment advice is appreciated . Thanks in advance .

The home didn't take all of her assets? That's very lucky indeed. IMHO keeping her liquid is more important since growth is unlikely in the time she has left.

edit: wow that sounded cold...sorry. What I mean is if she lives to 100 then the investment could realize some growth otherwise I'd invest in a way that keeps the money available without penalty.

[john70t]

Go through that contract with a fine-toothed comb!

https://www.seniorliving.org/nursing-homes/costs/
"a private room in a nursing home costs $290 per day, or $8,821 per month."

If an entity defaults on payment for extra care or whatever...this may leave her/you on the hook, and/or an elderly parent ejected in a bad way.

Mom currently pays ~$5k/mo for independent living apartment (nice with good food/great staff/taxes/cleaning/exercise rooms/some programs), which is economically not a great plan long term, but we went through the talk and it's her decision among others. She is comfortable and happy for now and that is what is most important. The package deal with all amenities available probably works out the same with less stress to all. Not my decision.

She had a collapse and fall recently but Medicare did not cover the 20 days of rehab they should have. The new standard for discharge (as related to me) was being able to walk five feet to another chair. Belts are being tightened. She had filed an appeal which was denied later on, but was then retroactively on the hook for $1200 for two days of ZERO communication from the private interim company handling it with the government (and paid by gov I believe). Problems with the nursing home itself. She was sent back without a walker or wheelchair even which was also denied. Admin in that department was continuously MIA. What a clusterfk mess of systematic failure. It's a very good this particular patient had family in the area or she might as well been tossed curbside. I'm still trying to figure out how to address it properly for the long run.

[john70t]

As a cautionary tale of NOT obtaining legal guardianship NOW:

I've heard stories of scuzzy nursing homes being granted "conservativeship" by their cousin the local judge.
They rack up the charges, bleed the fund dry, put granny on the curb, and then go after the kids and their families in another state for the balance.

(Somehow..with all the rich baby boomers retiring..this major fraud issue has never been a major news story.)

[Paul_Heery]

A lot of good information provided in this thread. We just went through this with my MIL.

We sold her house and moved her into assisted living. The proceeds from the house we put into a money market at Ally which gives her a whopping 0.5% interest. We needed to keep the funds rather liquid.

The cost for her in assisted living are around $8,600 per month. She has some funds coming in from SS, a teachers pension, an annuity and also a long-term care insurance plan. But, we are still pulling out about $2.5K per month out of the money market.

Are you sure that her income is covering all of the monthly expenses?

Another thing, we had an attorney that specializes in senior law review the assisted living contract. She told us that no one other than my MIL should sign the contract with the assisted living facility. Often, people sign the agreements along with their loved ones and find that they have put themselves on the hook financially.

[john70t]

Originally Posted by Paul_Heery

Often, people sign the agreements along with their loved ones and find that they have put themselves on the hook financially.

Never sign a contract shoved into your face.
Any agreement you might sign is worthy of further consideration.
Consider all options.

[Black968]

If you are looking for stability with with a dividend, look for an exchange traded fund with a low MER ratio. Maybe a Utility focus or Bank (KRE S&P SPDR) focus. In a rising interest rate environment, the banks will do well. Other than that, put it in a pillow and wait for Bonds and Interest rates to go up. Don't invest anything you can't afford to lose.

[einreb]

I Bonds may be a sound route for some of that $. You can do 10k per calendar year, so 10k now and 10k in January takes care of $20k. Currently at 7%

https://www.forbes.com/sites/isabelcontreras/2021/11/02/how-to-earn-7-on-safe-bonds-your-broker-cant-sell-you

[rfuerst911sc]

Technically the house is owned by my wife and her sister on paper . My MIL has lifetime survivership ( I think that's what it's called ) . So that means my wife and sister get about 45k each from the sale and MIL gets about 10k . But it's all her money .

So my wife and sister in law will invest their portion for their mom . That money needs to be available if needed . The 25k that currently is invested in NY we will transfer to a similar fund here in Georgia . Hope that all makes sense .

[MRM]

The answer to most of your MiL’s investment question is answered by I-Bond. I Bonds are the Treasury’s inflation-protected product. They are currently paying 7.1%. Everyone in the country should be in them. You can only invest $10,000 per SSN per year, but she need to put $10,000 into an I Bond this year and another $10,000 into an I Bomd after the Nee Year and she’s part of the way there. It’s just an insanely good investment. My wife, our mothers and our kids are all buying the max this year and next. If your family is willing, maybe relatives are willing to hold grandma’s money and buy grandma an I Bond. https://www.forbes.com/advisor/investing/what-are-i-bonds/

For the rest of the money, you might actually look into an annuity. At 89 her annual return will be substantial.

Otherwise, go to Vegas, share a buffet with Ted and put it on red 29.

[biosurfer1]

Originally Posted by MRM

The answer to most of your MiL’s investment question is answered by I-Bond. I Bonds are the Treasury’s inflation-protected product. .

I thought I bonds cannot be cashed out for at least 1 year and if you cash out before 5 years, you lose 3 months of interest? Doesn't seem very liquid even if it's a decent return right now.

[sc_rufctr]

Originally Posted by rfuerst911sc

Technically the house is owned by my wife and her sister on paper . My MIL has lifetime survivership ( I think that's what it's called ) . So that means my wife and sister get about 45k each from the sale and MIL gets about 10k . But it's all her money .

So my wife and sister in law will invest their portion for their mom . That money needs to be available if needed . The 25k that currently is invested in NY we will transfer to a similar fund here in Georgia . Hope that all makes sense .

Just a gentle comment. I would provide supportive comments and suggestions but stay well back from the decisions.

Your wife and her sister need to be making the decisions about were this money is invested.
That way if something goes wrong they can't blame you.

[SCadaddle]

So. Help me out here. If I were to tie up the max I'm allowed in any given year of $10000 in a series I bond and then cashed it out after a year, it might pay for 4 months of internet and cable TV service? And we're talking about helping with assisted living expenses of $8000 a month?

[biosurfer1]

Originally Posted by SCadaddle

So. Help me out here. If I were to tie up the max I'm allowed in any given year of $10000 in a series I bond and then cashed it out after a year, it might pay for 4 months of internet and cable TV service? And we're talking about helping with assisted living expenses of $8000 a month?

I think you mixed up all sorts of posts in this thread.

The OP just asked where to invest some proceeds from the sale of a home.

Someone else brought up your $8k/month figure and someone else talked about I bonds.

[McLovin]

Originally Posted by rfuerst911sc

Thinking of a money market account at a bank with FDIC coverage.
.She is 89 years old . We really don't want to deal with market volitility at her age . Her " nest egg " is 25k plus this 100k. The 25k is currently invested with a financial advisor.

You’ve answered you own question.

Money market/savings acct at a bank.

She’s 89 years old and in assisted living.

Without significant risk she isn’t going to make any meaningful return on $100k in her lifetime. Nor should she try.

[MRM]

Originally Posted by biosurfer1

I thought I bonds cannot be cashed out for at least 1 year and if you cash out before 5 years, you lose 3 months of interest? Doesn't seem very liquid even if it's a decent return right now.

You could get a line of credit secured by the I Bond if you’re worried about liquidity. But even if you lose 3 months’ interest, you’re way ahead at a 7% return. You can only put $10,000 in this year and another $10,000 next year, so you have $80,000 to put into a money market at 100% liquidity and 0% return.

[Arizona_928]

Crypto. Become a whale of the shiba inu tokens.

But really. At 89. I would do one of those world cruises with my parents. Money means nothing.

[rfuerst911sc]

I appreciate all the advice , it helps to reinforce what we think will be best for her . I think we will work with the local bank to open money market accounts while the MIL is alive . And we will move the money currently invested in NY to a similar fund near us .

When she passes all remaining monies will be split 50/50 to my wife and her sister to do with what they want . Thanks guys 👍