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Message
Seeking Investment Advice for Parents
Posted on 12/17/16 at 10:11 am
Posted on 12/17/16 at 10:11 am
So my parents are mid-50s, both have fairly blue collar jobs and make a combined $120k-ish. They just finished paying off their house that was appraised for around $195k. They want to do some renovating in the kitchen and bathrooms along with the typical repainting of some rooms. They should have all of that done and paid for by the end of April or May.
Once they are finished with that they won't have any kind of debt. I think their plan right now is just to throw everything towards retirement.
From reading this board it seems like a lot of people would advise that others have their money work harder for them with interest rates being as low as they are.
What kind of advice would you give them in order to maximize their return?
Once they are finished with that they won't have any kind of debt. I think their plan right now is just to throw everything towards retirement.
From reading this board it seems like a lot of people would advise that others have their money work harder for them with interest rates being as low as they are.
What kind of advice would you give them in order to maximize their return?
This post was edited on 12/17/16 at 10:16 am
3
Posted on 12/17/16 at 10:38 am to LigerFan
Do they have anything for retirement now?
Posted on 12/17/16 at 10:44 am to Shepherd88
quote:This.
Do they have anything for retirement now?
401k, IRA, cash balances and such. Are they nearing retirement?
Posted on 12/17/16 at 10:48 am to LigerFan
I'm 60, wife is about to be 57.
Semi-retired, have a pension.
Wife is seeking ACSM-CPT certification, second career, currently teaches pre-school.
Only debt is my care note. House, school loans, credit cards no longer.
Updating home of 25 years, now, paying as we go.
We spend, save and have some investments.
Our lifestyle is comfortable, never have been extravagant.
Hope we have covered the essentials, think we have as we have been pretty deliberate, and are enjoying one another.
Have tried to minimize any burden on children, was a biggie on our list.
Semi-retired, have a pension.
Wife is seeking ACSM-CPT certification, second career, currently teaches pre-school.
Only debt is my care note. House, school loans, credit cards no longer.
Updating home of 25 years, now, paying as we go.
We spend, save and have some investments.
Our lifestyle is comfortable, never have been extravagant.
Hope we have covered the essentials, think we have as we have been pretty deliberate, and are enjoying one another.
Have tried to minimize any burden on children, was a biggie on our list.
This post was edited on 12/17/16 at 10:49 am
Posted on 12/17/16 at 1:19 pm to Shepherd88
Yea, mom has taught for 25+ years so she is good to go. Dad has been maxing his 401k for 10 years now, plus whatever he was putting into it before all the kids finished highschool.
Posted on 12/17/16 at 2:30 pm to LigerFan
I would go talk to a FA. Sounds like a goal needs to be implemented on a set retire date and how much they want to spend/month in retirement.. taking that and all they have saved into account should give a figure of how much they need to be saving now for that goal
Posted on 12/17/16 at 4:17 pm to Shepherd88
Thank you for saying what I didn't. Is precisely what we did and moved accordingly.
Posted on 12/17/16 at 4:46 pm to LigerFan
quote:If this is accurate then they should be in good shape. $18,000 per year plus an additional $6000 catch up allowed for those over 50. Being in their 50's I would split it between Vanguard Index 500 fund and a low duration broad based bond fund.
Dad has been maxing his 401k for 10 years now
Posted on 12/17/16 at 11:41 pm to LigerFan
I recall Warren Buffet saying his will is leaving 90% of his money in the Vanguard S&P 500 (up 12.8% this year).
March 2014: "My advice to the trustee (for his wife) could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors . . .”
March 2014: "My advice to the trustee (for his wife) could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors . . .”
This post was edited on 12/17/16 at 11:46 pm
Posted on 12/18/16 at 7:46 am to matthew25
That's interesting.. but it ain't that simple.. he's missing out on all Small/Mid cap exposure, international equity exposure, emerging market exposure, and international bond exposure (even though i know he's not a bond fan). Those all play in an important roll in diversification.
Not to mention to opportunity in the sm/mid equities under a trump presidency.
Not to mention to opportunity in the sm/mid equities under a trump presidency.
Posted on 12/18/16 at 10:57 pm to Shepherd88
Your post reminds me of the 4 mutual funds held by Dave Ramsey. I'll have to research.
Buffet tailored his advice to someone aged 60 and older.
Buffet tailored his advice to someone aged 60 and older.
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