I have an elderly (86 years old) family member who asked me what I thought he should do with his money. He's living in a retirement community and hasn't had any debts of any type in decades. He has all of his money in CDs that draw a dreadfully low amount of interest. He has more than enough to live comfortably for the rest of his life but he wants to put his money into something safe that is better than CDs. Any thoughts?

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Posted by nelatf

NELA

Member since Jan 2011

2296 posts

Posted on 10/10/13 at 10:45 am to Haughton99

First thought - Keep it in CDs

Follow up questions:

1.) how much is it
2.) kids and grandkids?

Generally speaking, I avoid giving money advice to relatives...

This post was edited on 10/10/13 at 10:48 am

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Posted by Slickback

Deer Stand

Member since Mar 2008

27686 posts

Posted on 10/10/13 at 12:16 pm to Haughton99

Get him to meet with someone that specializes in that. Estate planning is often overlooked by the elderly when it is vitally important.

I'd research it for him and get the fin planner you choose to go meet him at the retirement community. Offer to and sit with them during the meeting or to be a middleman.

This post was edited on 10/10/13 at 12:18 pm

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Posted by LSURussian

Member since Feb 2005

126963 posts

Posted on 10/10/13 at 12:19 pm to Haughton99

Be very careful.

Your elderly family member's heirs can go against you after his passing if they believe they can prove you gave poor investment advice to him or if you benefited financially to their detriment.

There have been numerous court cases similar to the circumstances you are in and you might be in a no-win situation no matter how well intentioned you are.

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Posted by Camp Randall

The Shadow of the Valley of Death

Member since Nov 2005

15602 posts

Posted on 10/10/13 at 1:34 pm to Haughton99

If he's 86. CDs are the way to go IMO.

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Posted by LSU0358

Member since Jan 2005

7919 posts

Posted on 10/10/13 at 1:46 pm to Haughton99

Keep it in CD's or paid for real estate that generates cash flow. RE would not need to be over 20% or so of his net worth, even that might be a little high.

And by real estate I don't mean to go build something where he could be exposed to construction costs, delays, etc. Property that is already built and could bring in renters/tenants with little to no effort.

This post was edited on 10/10/13 at 1:50 pm

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89613 posts

Posted on 10/10/13 at 2:53 pm to Haughton99

quote:
Any thoughts?

Have him give it to me and I'll cut you in for half.

j/k

Have you thought about the better dividend stocks?

Pretty much any of these companies will outperform CDs, in some cases substantially.

Dividata's Top Rated Stocks

At his age, ya'll might want to consult with trust people to determine the correct vehicle - you'll still have some flexibility in the risk/reward/yield areas.

This post was edited on 10/10/13 at 2:54 pm

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Posted by Meauxjeaux

98836 posts including my alters

Member since Jun 2005

40092 posts

Posted on 10/10/13 at 3:04 pm to Haughton99

My last advice to my grandmother.. who lived through the depression and scrimped and saved and had a 7 figure portfolio (how, I'll never know)...

Grammy, it's your money. Enjoy the hell out of it.

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Posted by RC