Short Term Investment Questions

[floatn turd]

So my mom is old.
She has some money in the bank.
My sister wants to get it out of the bank and into something like a house, that will make her some money, instead of just sitting in a bank account.

Since I am not burdened with the weight of "extra money", I don't know if real-estate is worth doing in the short term.
Or
If there are better options out there.

My mom only has about 5 years left in her, if I was a bet'n man.
(Sad, but it is what it is)

Anyone with "rich people problems" have ideas or opinions on safe, short term investment ideas for ab old woman??

Thank you
FT

 

[TimeBandit]

Treasury bills.

CD's.

No maintenance, no headaches, 100% liquidity.

 

[CLdrinker]

I heard Airbnb are great if the client will cancel when you need them too.

 

[Dkahnjob]

Treasury bills.

CDs.

No maintenance no headaches 100% liquidity.

+1 on T-Bills, no state tax, only federal tax on income.

 

[Mandelon]

There are REIT (Real Estate Investment Trust) funds that invest in real estate but are liquid enough to sell easily. They pay regular dividends. NO hassles of renters, maintenance costs, sales commissions or much risk.

There are many other dividend oriented funds on the stock market that invest in high dividend stocks. I mean safe ones, like utilities, shopping centers, and large solid corporations. Not junk bonds or anything risky.

She will get quarterly or semi annual dividend payments.

 

[paradise]

5% on treasury bills right now in the short term. Five years is less than that but effectively zero risk.

Another option would be a high yield savings account. She can get 5% right now, but as rates drop so will the yields on those accounts this would be the easiest and most familiar, but depending upon the amount of money, FDIC insurance may not cover it if the bank fails.

 

[evantwheeler]

So my mom is old.
She has some money in the bank.
My sister wants to get it out of the bank and into something like a house, that will make her some money, instead of just sitting in a bank account.

Since I am not burdened with the weight of "extra money", I don't know if real-estate is worth doing in the short term.
Or
If there are better options out there.

My mom only has about 5 years left in her, if I was a bet'n man.
(Sad, but it is what it is)

Anyone with "rich people problems" have ideas or opinions on safe, short term investment ideas for ab old woman??

Thank you
FT

Do you trust your sister? Are there ulterior motives for her to want to "buy mom a house" with mom's money?

Investment houses are a huge pain in the ass, your mom is not likely to see any benefit in her lifetime from buying a house with that money.

The real question is what does your mom want to do with her money?

My mom is the most risk averse person I know and has squirreled away a bunch of cash working side jobs for the last 30 years. She takes chunks up to the FDIC limit and will circle the money around town at different banks depending on who will give her the best CD rate when one of them reaches maturity. Its a little game she likes to play with the banks and it works for her.

 

[ChumpChange]

Don’t buy a house. Do something liquid with it. Keep it in some type of avenue that your mom could actually benefit from.

Locking it into real estate is basically doing something for the benefit of you and your sister. It will lock up your mom’s money where she can’t use it before she passes. Seems like there’s an ulterior motive there.

Something to think about. When you buy real estate, you already lose 6% of the value because that’s what it’s gonna take for you to sell the house. If it’s not gonna appreciate, and you won’t get that type of return on your money over the next few years, it’s a losing investment.

 

[mjc]

Laddered CD's work good for this type of thing.

 

[JFMFG]

Money Market Account.

 

[stoker22405]

Disregard all the above suggestions.....
Tell her to go spend her money and enjoy her last years ....
Let the last check she writes BOUNCE....!

 

[bowtiejunkie]

I would ask your Mom what she thinks. CD's, T-bills, Money Market Fund, are safe. Probably not a good idea to purchase a home and lock up the funds.

My mom has most her money sitting in 3 or 4 blue chip dividend paying stocks. I've tried to get her to divirsify, but she refuses. The combination has worked for 40 years so I don't push much anymore for diversifying.

Edit: post above mine has a great point. That's what I've told my mom. Spend YOUR money however you want. If there's zero left, I'm not going to be upset.

 

[samsah33]

Stick with the CD's, MM funds or T Bills, and only invest what she can afford to lose.

 

[floatn turd]

Thank you all.

No ulterior motive.
My sister has her own money.
And
My mom is at the end of controlling her $$ days.
Everyone gets there and she has arrived.

I'm not a big fan of buying a house, I agree.
I think it would be a pain in the ass.

I also don't know about CDs and all that business. I'll learn up on it.

Maybe some gold?

 

[Good Stuff]

Speaking from personal experience if the money from a house purchase could be used to gain monthly income for the entire time it is owned it’s a great idea. In the long term it creates family wealth as long as it continues to be rented out for income and possibly even leveraged into purchasing more properties after it is no longer needed to cover expenses. That comes with the stipulation that the asset would continue to be owned in a trust and not liquidated immediately regardless of market condition if something happens to your mom. Real estate does cycle up and down but rents haven’t seemed to take any large hits through the past value downturns. Get stuck with a deadbeat squatter and it all changes and becomes a massive headache and expense depending on the state the property is located in. If you got a CD that paid dividends monthly to continue and cover mom’s expenses that could also be a benefit. If you can’t get enough interest to cover those expenses and are constantly drawing down the balance then you will also continue to get smaller and smaller returns until the money is gone. Tax liabilities on the income generated always need to be considered. There will always be people who don’t see the value in owning property and that’s what feeds the rental pool. Rents increase while a fixed rate mortgage or a paid off home will not increase costs except for maintenance. A plan for that must be in place that allows income to pad an account that can cover those unforeseen costs and your moms expenses. Remember that long term care also increases and factor that into your decisions. It can double over 5-10 years so depending on age a long term care insurance policy might also be an option but I am unfamiliar with it except that it exists. Seek the advice of a few professionals on both sides and consult a good tax attorney or CPA.

 

[Havasu blue label]

CDs try and get 1 year one

 

[Good Stuff]

Also establish a trust now for whatever assets your mom has if she doesn’t already have one. They help keep a family whole by eliminating a lot of the frustrations, arguing, and financial loss that comes with probate.

 

[floatn turd]

1) I don't think real-estate is right for us in this particular situation.
2) I do want to learn about CDs and all that business.
3) We do have a trust already set up.

Thank you all for the input.

 

[farmo83]

JEPI

 

[riverroyal]

Pontoon
Posting for a friend

 

[cofooter]

the1) I don't think real-estate is right for us in this particular situation.
2) I do want to learn about CDs and all that business.
3) We do have a trust already set up.

Thank you all for the input.

If you buy a CD make sure to get one that is call protected so you don't get gipped out of your interest during the term....

 

[coolchange]

Also establish a trust now for whatever assets your mom has if she doesn’t already have one. They help keep a family whole by eliminating a lot of the frustrations, arguing, and financial loss that comes with probate.

^^^^^^^^^THIS^^^^^^**

 

[DWC]

Disregard all the above suggestions.....
Tell her to go spend her money and enjoy her last years ....
Let the last check she writes BOUNCE....!

This^^^^^

 

[caribbean20]

Open an account with Fidelity or Schwab and put it in money market funds or Treasury Bills. If 4% - 5% is sufficient, easy peasy and risk free. A rep at either of those brokers can walk you through it. Don’t be afraid to ask questions, that’s what they are there for. Or ask me, happy to help.

 

[Orange Juice]

Gold coins. Bury them in her backyard.

 

[floatn turd]

All good advice.

Thank you everyone for the help.

 

[JL95]

Possibly buy us a community Dcb to use??? Stonks

 

[DILLIGAF]

Disregard all the above suggestions.....
Tell her to go spend her money and enjoy her last years ....
Let the last check she writes BOUNCE....!

Boy. Wouldnt that be ideal. Lol