Long story short:
My Uncle, who does not live in the US and recently received a nice severance package after being laid-off with (30+ years working for the same employer), doesn't know what to do with this sum in order to generate a modest but semi-safe income.
Traditional investment strategies do not apply where he lives (South America) and CD's and other "safe" options pay next to nothing, just like in the US. Plus, inflation runs rampant and he'll never be able to catch-up if he stays in cash, with a currency that is extremely devalued against the US dollar. Real estate is also out of the question. Prices are ridiculous (lots more than in the US, even when the average salary is considerably less), and that market will probably crash soon.
He can not open an account in the US because he is not a resident. So he gave me about $10K US to invest, under MY name, in whatever shape or form I trust is the most convenient.
What would you more experienced folks do?
Could anybody suggest a semi-conservative portfolio? He doesn't expect to collect any profits right away. Instead, he sees that as a "deposit and forget for a few years" emergency money. If he visits me in the future, he'll cash-in.
My only concern is the tax situation. How would that affect me, other than raising my income level if the investment does turn a profit, of course? Is there something I need to consider before opening an account under my name with money that is not mine?
If anybody else here was in similar shoes, I would appreciate any input. Thanks in advance.
My Uncle, who does not live in the US and recently received a nice severance package after being laid-off with (30+ years working for the same employer), doesn't know what to do with this sum in order to generate a modest but semi-safe income.
Traditional investment strategies do not apply where he lives (South America) and CD's and other "safe" options pay next to nothing, just like in the US. Plus, inflation runs rampant and he'll never be able to catch-up if he stays in cash, with a currency that is extremely devalued against the US dollar. Real estate is also out of the question. Prices are ridiculous (lots more than in the US, even when the average salary is considerably less), and that market will probably crash soon.
He can not open an account in the US because he is not a resident. So he gave me about $10K US to invest, under MY name, in whatever shape or form I trust is the most convenient.
What would you more experienced folks do?
Could anybody suggest a semi-conservative portfolio? He doesn't expect to collect any profits right away. Instead, he sees that as a "deposit and forget for a few years" emergency money. If he visits me in the future, he'll cash-in.
My only concern is the tax situation. How would that affect me, other than raising my income level if the investment does turn a profit, of course? Is there something I need to consider before opening an account under my name with money that is not mine?
If anybody else here was in similar shoes, I would appreciate any input. Thanks in advance.