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aging parents with no investments
Primary Residence to Investment Property - Changing PMI TermsDad paying for my new home in cash. How can I buy the house from him?Renting Below Fair Rent (with maintenance agreement) - Tax ImplicationsA home loan refinance problemWhat to consider when loaning parents $50k to pay off investment propertyInvestment strategy for retired coupleGetting Earthquake Insurance on a new MortgageMortgage documents vs Credit report: am I mortgage-less now?What kind of resources are there for children taking care of their aging parents?Out of state property for a secured home loan
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My aging parents (75/77years) own a house on 35+ acres in rural NE USA (no mortgage). They have:
- No investments (other than the obvious property)
- Savings of maybe $30k in a bank account paying minimal interest
- No income other than Social Security and the occasional odd job
- A smaller second home with a $25k mortgage balance (I don't know the loan's rate).
My dad has significant health issues and they are considering selling their primary home and moving into the smaller home. They tell me that a friend wants to help them with investing. I want to be sure they are not taken advantage of. What advice might I give them for their money (current savings and profit realized from property sale), and what issues might we think about as we consider making their money last.
united-states investing retirement retirement-plan
asked 11 hours ago
moscafjmoscafj
32136
add a comment |
My aging parents (75/77years) own a house on 35+ acres in rural NE USA (no mortgage). They have:
- No investments (other than the obvious property)
- Savings of maybe $30k in a bank account paying minimal interest
- No income other than Social Security and the occasional odd job
- A smaller second home with a $25k mortgage balance (I don't know the loan's rate).
My dad has significant health issues and they are considering selling their primary home and moving into the smaller home. They tell me that a friend wants to help them with investing. I want to be sure they are not taken advantage of. What advice might I give them for their money (current savings and profit realized from property sale), and what issues might we think about as we consider making their money last.
united-states investing retirement retirement-plan
asked 11 hours ago
moscafjmoscafj
32136
2
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago
add a comment |
My aging parents (75/77years) own a house on 35+ acres in rural NE USA (no mortgage). They have:
- No investments (other than the obvious property)
- Savings of maybe $30k in a bank account paying minimal interest
- No income other than Social Security and the occasional odd job
- A smaller second home with a $25k mortgage balance (I don't know the loan's rate).
My dad has significant health issues and they are considering selling their primary home and moving into the smaller home. They tell me that a friend wants to help them with investing. I want to be sure they are not taken advantage of. What advice might I give them for their money (current savings and profit realized from property sale), and what issues might we think about as we consider making their money last.
united-states investing retirement retirement-plan
asked 11 hours ago
moscafjmoscafj
32136
My aging parents (75/77years) own a house on 35+ acres in rural NE USA (no mortgage). They have:
- No investments (other than the obvious property)
- Savings of maybe $30k in a bank account paying minimal interest
- No income other than Social Security and the occasional odd job
- A smaller second home with a $25k mortgage balance (I don't know the loan's rate).
My dad has significant health issues and they are considering selling their primary home and moving into the smaller home. They tell me that a friend wants to help them with investing. I want to be sure they are not taken advantage of. What advice might I give them for their money (current savings and profit realized from property sale), and what issues might we think about as we consider making their money last.
united-states investing retirement retirement-plan
united-states investing retirement retirement-plan
asked 11 hours ago
moscafjmoscafj
32136
asked 11 hours ago
moscafjmoscafj
32136
edited 40 mins ago
moscafj
asked 11 hours ago
moscafjmoscafj
32136
asked 11 hours ago
moscafjmoscafj
32136
asked 11 hours ago
moscafjmoscafj
32136
32136
2
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago
add a comment |
2
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago
2
2
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago
add a comment |
3 Answers
3
active
oldest
votes
Do they want your help?
Many times parents have difficulty taking advice from those whose nose and butt they wiped. Your accomplishments and investments are independent of the fact.
What are their needs?
They likely have social security and is that meeting their needs now? What happens after dad passes? Coming up with solid numbers is an important step to figuring out a strategy.
How will the friend profit from "investment" advice?
More often then not, he is just an insurance agent that will do something that benefits him, but may not be optimal for your parents. What solidifies this opinion of mine is using the word investment in this context. Your parents will likely have a short term need for cash, and investment tends to mean long term. This friend seems to ignore this fact.
What is your investment experience?
If it is minimal, I would recommend seeing a fee-only financial adviser. Seek one that can teach you three about investments and help you make good decisions. Coming to this person with firm numbers will reduce the cost as they will not have to work through the numbers for you guys.
edited 6 hours ago
Nathan L
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
|
show 5 more comments
Explain to your parents what a fiduciary1 is.
Tell them that no matter how much they like this guy (gal?) they should only invest with someone that they have a fiduciary relationship with - because they only have one shot left and it needs to be the best thing for them.
Steer them to someone who is a certified financial planner or any other certification
which their state holds to the standard of a fiduciary.
It may not even be a good idea to do anything except pay off the mortgage and then get CDs for most of the rest of the money. (depending on life expectancy of your mom)
One final item is... when your Father dies your Mother needs to have enough to live on and her SS will decrease by some amount. Maybe you can determine what this is in advance?
This all assumes that you parents want your advice... which isn't always the case - best wishes!
1 The law requires that the decisions made must be in the best interest of the client. If that doesn't happen, your parents (or you, if you are an heir) can sue for compensation.
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
add a comment |
Probably they shouldn't be investing. It's too late for that. And if they aren't investing it's pretty simple: Sell the big property before they urgently need the money because that takes time, then pay off the mortgage on the other house because the mortgage only costs money and they probably can afford to pay it off. In that order so they always have some liquid money in the bank. Get some certified professional (e.g. fiduciary) to work out the details.
answered 5 hours ago
NobodyNobody
1457
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
add a comment |
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3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
Do they want your help?
Many times parents have difficulty taking advice from those whose nose and butt they wiped. Your accomplishments and investments are independent of the fact.
What are their needs?
They likely have social security and is that meeting their needs now? What happens after dad passes? Coming up with solid numbers is an important step to figuring out a strategy.
How will the friend profit from "investment" advice?
More often then not, he is just an insurance agent that will do something that benefits him, but may not be optimal for your parents. What solidifies this opinion of mine is using the word investment in this context. Your parents will likely have a short term need for cash, and investment tends to mean long term. This friend seems to ignore this fact.
What is your investment experience?
If it is minimal, I would recommend seeing a fee-only financial adviser. Seek one that can teach you three about investments and help you make good decisions. Coming to this person with firm numbers will reduce the cost as they will not have to work through the numbers for you guys.
edited 6 hours ago
Nathan L
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
|
show 5 more comments
Do they want your help?
Many times parents have difficulty taking advice from those whose nose and butt they wiped. Your accomplishments and investments are independent of the fact.
What are their needs?
They likely have social security and is that meeting their needs now? What happens after dad passes? Coming up with solid numbers is an important step to figuring out a strategy.
How will the friend profit from "investment" advice?
More often then not, he is just an insurance agent that will do something that benefits him, but may not be optimal for your parents. What solidifies this opinion of mine is using the word investment in this context. Your parents will likely have a short term need for cash, and investment tends to mean long term. This friend seems to ignore this fact.
What is your investment experience?
If it is minimal, I would recommend seeing a fee-only financial adviser. Seek one that can teach you three about investments and help you make good decisions. Coming to this person with firm numbers will reduce the cost as they will not have to work through the numbers for you guys.
edited 6 hours ago
Nathan L
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
|
show 5 more comments
Do they want your help?
Many times parents have difficulty taking advice from those whose nose and butt they wiped. Your accomplishments and investments are independent of the fact.
What are their needs?
They likely have social security and is that meeting their needs now? What happens after dad passes? Coming up with solid numbers is an important step to figuring out a strategy.
How will the friend profit from "investment" advice?
More often then not, he is just an insurance agent that will do something that benefits him, but may not be optimal for your parents. What solidifies this opinion of mine is using the word investment in this context. Your parents will likely have a short term need for cash, and investment tends to mean long term. This friend seems to ignore this fact.
What is your investment experience?
If it is minimal, I would recommend seeing a fee-only financial adviser. Seek one that can teach you three about investments and help you make good decisions. Coming to this person with firm numbers will reduce the cost as they will not have to work through the numbers for you guys.
edited 6 hours ago
Nathan L
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
Do they want your help?
Many times parents have difficulty taking advice from those whose nose and butt they wiped. Your accomplishments and investments are independent of the fact.
What are their needs?
They likely have social security and is that meeting their needs now? What happens after dad passes? Coming up with solid numbers is an important step to figuring out a strategy.
How will the friend profit from "investment" advice?
More often then not, he is just an insurance agent that will do something that benefits him, but may not be optimal for your parents. What solidifies this opinion of mine is using the word investment in this context. Your parents will likely have a short term need for cash, and investment tends to mean long term. This friend seems to ignore this fact.
What is your investment experience?
If it is minimal, I would recommend seeing a fee-only financial adviser. Seek one that can teach you three about investments and help you make good decisions. Coming to this person with firm numbers will reduce the cost as they will not have to work through the numbers for you guys.
edited 6 hours ago
Nathan L
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
edited 6 hours ago
Nathan L
30.1k1675130
edited 6 hours ago
Nathan L
30.1k1675130
edited 6 hours ago
Nathan L
30.1k1675130
30.1k1675130
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
answered 11 hours ago
Pete B.Pete B.
52.1k13111164
52.1k13111164
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
|
show 5 more comments
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
1
1
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
...excellent points. In response: They brought up the finances, are open to family input. Dad had recent health scare, which initiated this. Beyond that, lifelong financial planning is not something they've engaged in. Current needs are minimal. Happy living on social security. We do need a plan for when dad passes. I don't yet know the details about the "friend" (former part-time employer of my mom...tax accountant). I am assuming good intentions at this point. My investment/retirement planning experience is significant, but self-taught, and my wife and I have been doing well our own.
– moscafj
10 hours ago
2
2
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
The main piece is they aren't working with a long-timeline so should keep things pretty low-risk. Depending on the value of the house they intend to sell they could potentially be fine with no risk investments.
– Hart CO
10 hours ago
4
4
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
My reaction when I read this question was a bit like point 3: Is investing right for them AT ALL?
– UKMonkey
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
@UKMonkey fair point, and my thought as well. It was my first reaction when they stated a friend wanted to help with "investments."
– moscafj
10 hours ago
4
4
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
should you add "fiduciary" to the "fee only financial adviser"?
– aaaaaa
9 hours ago
|
show 5 more comments
Explain to your parents what a fiduciary1 is.
Tell them that no matter how much they like this guy (gal?) they should only invest with someone that they have a fiduciary relationship with - because they only have one shot left and it needs to be the best thing for them.
Steer them to someone who is a certified financial planner or any other certification
which their state holds to the standard of a fiduciary.
It may not even be a good idea to do anything except pay off the mortgage and then get CDs for most of the rest of the money. (depending on life expectancy of your mom)
One final item is... when your Father dies your Mother needs to have enough to live on and her SS will decrease by some amount. Maybe you can determine what this is in advance?
This all assumes that you parents want your advice... which isn't always the case - best wishes!
1 The law requires that the decisions made must be in the best interest of the client. If that doesn't happen, your parents (or you, if you are an heir) can sue for compensation.
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
add a comment |
Explain to your parents what a fiduciary1 is.
Tell them that no matter how much they like this guy (gal?) they should only invest with someone that they have a fiduciary relationship with - because they only have one shot left and it needs to be the best thing for them.
Steer them to someone who is a certified financial planner or any other certification
which their state holds to the standard of a fiduciary.
It may not even be a good idea to do anything except pay off the mortgage and then get CDs for most of the rest of the money. (depending on life expectancy of your mom)
One final item is... when your Father dies your Mother needs to have enough to live on and her SS will decrease by some amount. Maybe you can determine what this is in advance?
This all assumes that you parents want your advice... which isn't always the case - best wishes!
1 The law requires that the decisions made must be in the best interest of the client. If that doesn't happen, your parents (or you, if you are an heir) can sue for compensation.
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
add a comment |
Explain to your parents what a fiduciary1 is.
Tell them that no matter how much they like this guy (gal?) they should only invest with someone that they have a fiduciary relationship with - because they only have one shot left and it needs to be the best thing for them.
Steer them to someone who is a certified financial planner or any other certification
which their state holds to the standard of a fiduciary.
It may not even be a good idea to do anything except pay off the mortgage and then get CDs for most of the rest of the money. (depending on life expectancy of your mom)
One final item is... when your Father dies your Mother needs to have enough to live on and her SS will decrease by some amount. Maybe you can determine what this is in advance?
This all assumes that you parents want your advice... which isn't always the case - best wishes!
1 The law requires that the decisions made must be in the best interest of the client. If that doesn't happen, your parents (or you, if you are an heir) can sue for compensation.
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
Explain to your parents what a fiduciary1 is.
Tell them that no matter how much they like this guy (gal?) they should only invest with someone that they have a fiduciary relationship with - because they only have one shot left and it needs to be the best thing for them.
Steer them to someone who is a certified financial planner or any other certification
which their state holds to the standard of a fiduciary.
It may not even be a good idea to do anything except pay off the mortgage and then get CDs for most of the rest of the money. (depending on life expectancy of your mom)
One final item is... when your Father dies your Mother needs to have enough to live on and her SS will decrease by some amount. Maybe you can determine what this is in advance?
This all assumes that you parents want your advice... which isn't always the case - best wishes!
1 The law requires that the decisions made must be in the best interest of the client. If that doesn't happen, your parents (or you, if you are an heir) can sue for compensation.
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
answered 9 hours ago
J. Chris ComptonJ. Chris Compton
95719
95719
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
add a comment |
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
Not sure about the US, but in some countries, a fiduciary, even if doing a pretty honest job, is a really expensive service. One should have very clear information on how and how much this person is being paid and if he/she takes any bonuses from some investment broker.
– Mefitico
9 hours ago
1
1
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
@Mefitico You raise a good point. However, the fiduciary would likely be less expensive that someone who churns stock or puts them into products that don't fit. Which is also (not by coincidence) why a fiduciary can charge a higher rate/amount.
– J. Chris Compton
8 hours ago
add a comment |
Probably they shouldn't be investing. It's too late for that. And if they aren't investing it's pretty simple: Sell the big property before they urgently need the money because that takes time, then pay off the mortgage on the other house because the mortgage only costs money and they probably can afford to pay it off. In that order so they always have some liquid money in the bank. Get some certified professional (e.g. fiduciary) to work out the details.
answered 5 hours ago
NobodyNobody
1457
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
add a comment |
Probably they shouldn't be investing. It's too late for that. And if they aren't investing it's pretty simple: Sell the big property before they urgently need the money because that takes time, then pay off the mortgage on the other house because the mortgage only costs money and they probably can afford to pay it off. In that order so they always have some liquid money in the bank. Get some certified professional (e.g. fiduciary) to work out the details.
answered 5 hours ago
NobodyNobody
1457
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
add a comment |
Probably they shouldn't be investing. It's too late for that. And if they aren't investing it's pretty simple: Sell the big property before they urgently need the money because that takes time, then pay off the mortgage on the other house because the mortgage only costs money and they probably can afford to pay it off. In that order so they always have some liquid money in the bank. Get some certified professional (e.g. fiduciary) to work out the details.
answered 5 hours ago
NobodyNobody
1457
Probably they shouldn't be investing. It's too late for that. And if they aren't investing it's pretty simple: Sell the big property before they urgently need the money because that takes time, then pay off the mortgage on the other house because the mortgage only costs money and they probably can afford to pay it off. In that order so they always have some liquid money in the bank. Get some certified professional (e.g. fiduciary) to work out the details.
answered 5 hours ago
NobodyNobody
1457
answered 5 hours ago
NobodyNobody
1457
answered 5 hours ago
NobodyNobody
1457
answered 5 hours ago
NobodyNobody
1457
1457
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
add a comment |
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
Great point. You invest to ensure financial security in the future. As a 77 year old with health issues, that future is already here.
– JohnFx♦
22 mins ago
add a comment |
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2
Regarding the part where you "want to be sure they are not taken advantage of". First you should study a lot about personal finances and investment options, as you reach mid-level knowledgeable, you should start motivating them to get information and talk about this things. Knowledge in this case is protection.
– Mefitico
9 hours ago
It probably doesn’t need to be said, but check that the friend isn’t just a so-called ‘Facebook friend’.
– Lawrence
4 hours ago
Your parents have some investments, the house and 35 acres.
– Quora Feans
1 hour ago