Thread: My parents need investment advice

Mayday,

How much annual income (in constant 2007 dollars) do they need to generate from the $450,000? How long do they need to generate it?

The fact is, they should probably secure the services of a professional financial manager at this point. At this age, there are more questions to answer, such as estate and tax planning, extended care issues, etc... and a variety of personal factors that just cannot be adequately addressed in a message board forum.

What we can offer are some very good opinions and keen insights. Ultimately, your parents need a reliable, competent individual with whom they can meet face to face. In this way, one can understand their particular needs in detail.


Best of luck

Originally Posted by SkyPilot

The fact is, they should probably secure the services of a professional financial manager at this point.......
Best of luck

I agree. There are so many different ways to use that money for their wishes. For a small fee, an investment consultant can show what they want to do with their money and if it is beneficial...trusts, annuities, working income, all have tax and fees associated with them.

Originally Posted by rokid

Mayday,

How much annual income (in constant 2007 dollars) do they need to generate from the $450,000? How long do they need to generate it?

I know annual income should be 3% to 4% of the 450K Also they need to generate at least 6% to keep the principle and to keep up with inflation. They need a balance of both stocks and fixed income investments.

Originally Posted by SkyPilot

The fact is, they should probably secure the services of a professional financial manager at this point. At this age, there are more questions to answer, such as estate and tax planning, extended care issues, etc... and a variety of personal factors that just cannot be adequately addressed in a message board forum.

What we can offer are some very good opinions and keen insights. Ultimately, your parents need a reliable, competent individual with whom they can meet face to face. In this way, one can understand their particular needs in detail.


Best of luck

This is very sound advice. Getting all your ducks in a row. You best believe this will be my first suggestion to them. Yet I still respect the very good opinions and keen insights of those on this board.

For safety I was thinking Treasury inflation-protected securities. The principal to these bonds are tied to the consumer price index. With inflation on the rise at least these bonds would keep up with a falling dollar.

My friend, inflation is not on the rise. We are in the midst of an incredible bull market and even someone 78 years young should have the opportunity to participate. The value of a stock portfolio is in both the dividend income and the capital gains appreciation - do they own equities? If they do you might consider the merits of a step up in basis when the stocks are possibly inherited. The inheritor is not responsible for any accrued gains. I would concentrate on finding them a nice protected environment to live their golden years away from a nursing home - assisted living is ideal. You pay up front to go in but then you are covered for any eventuality. They have so much flexibility available to them. But I would not fear equities - fixed income would be a waste.

Originally Posted by Birchtree

My friend, inflation is not on the rise. We are in the midst of an incredible bull market and even someone 78 years young should have the opportunity to participate. The value of a stock portfolio is in both the dividend income and the capital gains appreciation - do they own equities? If they do you might consider the merits of a step up in basis when the stocks are possibly inherited. The inheritor is not responsible for any accrued gains. I would concentrate on finding them a nice protected environment to live their golden years away from a nursing home - assisted living is ideal. You pay up front to go in but then you are covered for any eventuality. They have so much flexibility available to them. But I would not fear equities - fixed income would be a waste.

Birchtree The fixed income bonds are only part of a conservative portfolio. Protecting their principle is very important. Gains to stay at or exceed inflation secondary yet necessary. The stock fund part of their portfolio I could use a little help. I was thinking more in the lines of a 10% to 20% stock allocation and 10% cash the rest bonds.

Originally Posted by mayday

My parents have asked me to ask this MB about sugestions with their portfolio of $450,000.00 They are 78 years young. Everything is paid for and they have very little expenses. any thoughts would be greatly appreciated.

Hello Mayday,
As my husband and I are few years from retirement,we want to retire early so we invest little more conservative,buy good stocks with hi divident 8-12% a year,buy some mutual funds,some cash in internet banking which yield 4-6% for emergency use and the rest in stocks.GL

Mayday,

You / your folks need some professional services! I agree with Skypilot!
I don't think we have any financial advisors on the message board.
Two items you might try.
Visit a CPA with your folks.
Then visit a financial advisor at a reputable bank, maybe several.

Regards
Spaf

Originally Posted by Spaf

Mayday,

You / your folks need some professional services! I agree with Skypilot!
I don't think we have any financial advisors on the message board.
Two items you might try.
Visit a CPA with your folks.
Then visit a financial advisor at a reputable bank, maybe several.

Regards
Spaf

Spaf Thanks for the feed-back. zimmy, SkyPilot, Frixxx, and Birchtree. Three of you say seek a professional so thats just what I'll tell them. They have a CPA and I believe the reason why they asked me to do this is that the fund manager they are dealing with lost a lot of thier money. I think my parents need to be in less risky investments and their fund manager should have know this.