nnkrealtor
Recycles dryer sheets
- Joined
- Jun 8, 2005
- Messages
- 103
My parents (mom specifically) just inherited approx. 100k after taxes.
They are meeting with a FA next week.
The typical investment strategy for my family for generations has been to put all of their money into bank CD's.VERY conservative. VERY scared to put principal at any risk what so ever.
Now they are meeting with this FA next week and I am worried that she will steer them toward a high fee and super conservative vehicle like annuities.
Background
Both parents are late 50's
My father is retired with a teacher's pension (health insurance not covered in pension) so basically his pension pays for his and mom's insurance with not a ton left over.
He also has a farm that he inherited and at this point he has reinvested any farm income back into the farm as it had fallen into disrepair with his father died. That should change pretty soon as the major farm upgrades are complete. That being said with farming income can fluctuate greatly from year to year, so I consider that more a (hopefully) self sustaining hobby than an income source for him at this point.
Mom has worked management in a grocery store for the last 10 years. Odd jobs before that and a short stint as a public school employee so she has no retirement plan and until this windfall nothing stashed away.
They have, I would estimate 100k stashed away in laddered CD's.
Mom: wants to use a portion of the money for home [-]repairs[/-] upgrades like finishing the basement or adding a large deck and is unsure what to do with the remainder.
Dad: if left entirely to him it would go into CD's for the next 10 years and he would complain about the interest rate on those CD's for the next 10 years.
I have been invited to this meeting with the FI with them. My intentions are to just sit and listen during the meeting and then when we are alone try to steer them toward some Vanguard funds. To keep it simple I was thinking Target Retirement 2020.
I would like some help from the collective wisdom of this board for how to approach the subject and convince them to A: for mom not to blow this money on un needed home upgrades and B: for dad to invest in something other than CD's which is all he knows because that's all his parents and his parent's parents ever did.
They are meeting with a FA next week.
The typical investment strategy for my family for generations has been to put all of their money into bank CD's.VERY conservative. VERY scared to put principal at any risk what so ever.
Now they are meeting with this FA next week and I am worried that she will steer them toward a high fee and super conservative vehicle like annuities.
Background
Both parents are late 50's
My father is retired with a teacher's pension (health insurance not covered in pension) so basically his pension pays for his and mom's insurance with not a ton left over.
He also has a farm that he inherited and at this point he has reinvested any farm income back into the farm as it had fallen into disrepair with his father died. That should change pretty soon as the major farm upgrades are complete. That being said with farming income can fluctuate greatly from year to year, so I consider that more a (hopefully) self sustaining hobby than an income source for him at this point.
Mom has worked management in a grocery store for the last 10 years. Odd jobs before that and a short stint as a public school employee so she has no retirement plan and until this windfall nothing stashed away.
They have, I would estimate 100k stashed away in laddered CD's.
Mom: wants to use a portion of the money for home [-]repairs[/-] upgrades like finishing the basement or adding a large deck and is unsure what to do with the remainder.
Dad: if left entirely to him it would go into CD's for the next 10 years and he would complain about the interest rate on those CD's for the next 10 years.
I have been invited to this meeting with the FI with them. My intentions are to just sit and listen during the meeting and then when we are alone try to steer them toward some Vanguard funds. To keep it simple I was thinking Target Retirement 2020.
I would like some help from the collective wisdom of this board for how to approach the subject and convince them to A: for mom not to blow this money on un needed home upgrades and B: for dad to invest in something other than CD's which is all he knows because that's all his parents and his parent's parents ever did.