I Need Investing Opinions for a Senior

silverc4s · silverc4s's Garage

As a trusted family member, I have been asked to assist with some investing decisions that I do not feel fully qualified to make. Over the years I have seen a lot of great advice offered here, so I thought I would throw my question out there for all to comment on.
My wife's father died suddenly last week, leaving my 81 year old Mother In law alone for the first time in over 60 years. My wife is staying with her right now, and helping her through the first weeks of this, in the ways that she can.
On thing that has come up is that they have some savings, my Father in Law being very conservative, and far from wealthy, these appear to be mostly in CDs, which, of course earn almost nothing these days. No worries about the loss of your savings, but very small return on your money.
One CD of $20,000 is mature right now, and we have until 4/28 to reinvest in a CD again, or there will be some penalty/ after that, apparently.
I am looking for any alternate ideas for safely investing this money at pretty low risk, but with a better than CD return. Please give me some ideas, I am more than willing to go do research, but I would value some real world experienced opinions from this group that I trust very much.
Thanks in advance, everybody.

Tilikum Turbo · Tilikum Turbo's Garage

By far, the most trusted financial entity I have ever worked with is New York Life(whom handles my IRA's).

What you mentioned above is only the tip of the iceburg, and you need to seek wise counsel on this to determine a plan of action of how much money is there, the level of risk assessment, etc.

New York Life Insurance Company

Good luck!

widgeon13 · 04-19-2014, 07:11 AM

I think you need to determine if your FIL had a will and who is to execute the estate. If the assets are held jointly I don't think there are any issues but I would check with an attorney before I did anything. Also, are there other siblings, there wishes should be taken into consideration as well as conferring with your MIL (top priority) to ensure you are meeting her wishes.

If there was no will the assets might have to go to probate before anything else happens. Just move cautiously.

silverc4s · silverc4s's Garage

FIL did have a will, and all of their assets were held jointly, so I don't think that is an issue.
Family members will be in the loop, of course.

widgeon13 · 04-19-2014, 08:24 AM

May then want to consider a power of attorney. If that is OK with your MIL it makes for more straight forward execution on your part and removes any issue of having to get prior approval or have your MIL make any trades. I had to do it with my MIL and my mother.

wdfifteen · wdfifteen's Garage

I'm sorry for your family's loss.
If your MIL was comfortable with conservative investments, you should keep the portfolio conservative. The last thing you want to hear is, "We were doing fine until Bill got involved, then the market tanked and I lost a lot of money." Good family relations are better than good investments.

silverc4s · silverc4s's Garage

Quote:

Originally Posted by wdfifteen

If your MIL was comfortable with conservative investments, you should keep the portfolio conservative. The last thing you want to hear is, "We were doing fine until Bill got involved, then the market tanked and I lost a lot of money." Good family relations are better than good investments.

Exactly. I really want to just get her pointed in the right direction, not become her financial advisor. Afraid that would create too much family friction, and as I stated I am not really comfortable with that responsibility.

74-911 · 08:48 AM

Quote:

Originally Posted by silverc4s

I am looking for any alternate ideas for safely investing this money at pretty low risk, but with a better than CD return.

Unfortunately low risk and decent returns are about mutually exclusive these days. From my perspective I would be most concerned about preservation of capital rather than return. Your MIL may live 1 year or 15, i.e. what kind of health is she in? I personally would not let a financial advisor put her savings in anything that risked any serious loss as she may well not have the time to let it recover or worse you start having to withdraw funds in a seriously down markets.

I personally don't care for annuities but others may disagree and that could be an option.

If anyone knows of a "safe" investment with high returns, please let us know...

lukeh · lukeh's Garage

Nobody can give you a good answer if they don't ask the right questions. What is her risk tolerance? What is her time horizon. What is her tax bracket. What is her annual income. What is her net worth? Does she have long tern care insurance? What is her goal for this money...growth...income....passing it on to her family.... I could go on and on but you get the idea.

I realize when it come to money everyone seems to think they are an expert or they think the guys on the car forum are the experts.

If she was being sued you'd get a lawyer. If she had health problems you'd get a doctor. If the basement was filling with water you'd call the plumber. Well she needs help with money so see a CFP or some other financial professional. And no, we're not all crooks just trying to earn a big commission.

Find one by asking friends who they use and if they have been happy. Then once you have a recommendation feel free to post it here and I'm some of us will give you a second opinion.

Hugh R · 04-19-2014, 10:35 AM

The right answer is for you to get out of it. Suggest they turn it over to a financial planner.

When my MIL moved in with us five years ago, I insisted that ALL her finances be handled by one of her son's, not us. When she died last year I didn't want the evil sister-in-law who had been ripping her off to try and accuse us of anything. Which she did anyway.

silverc4s · silverc4s's Garage

Good advice from many of you here, my thanks to all. I am on a "remote" assignment right now, so I am limited in what I can get done from here. I will look into getting her connected with a financial planner.

jrdavid68 · 04-19-2014, 03:00 PM

I'd use https://www.napfa.org/ to find an advisor. Someone with a fiduciary duty to his/her clients.

MBAtarga · 04-20-2014, 05:25 AM

For the $20k CD, go ahead and roll it over for the short term.
Then, go out and find a free consult with a financial adviser to determine the estate size and what next steps are....

silverc4s · silverc4s's Garage

Quote:

Originally Posted by MBAtarga

For the $20k CD, go ahead and roll it over for the short term.
Then, go out and find a free consult with a financial adviser to determine the estate size and what next steps are....

This pretty much exactly what I have decided to do. Takes the time pressure away, and no danger of bad decisions costing $$$..

Thanks everyone. Keep posting ideas, fro example, I seem to recall that there may be a list of fairly safe stocks (GE, others) that pay a good dividend and are not very volatile price wise, that could be a part of a safe portfolio... maybe not, but that's the kind of idea I'm looking for.