Mom is trying to hold more "cash" ...

[Steelart99]

The sentimental attachment IS there since that was my Dad's approach. I'm hoping a fiduciary might help her see that she should at least start considering a more diversified portfolio. She does have enough other, non-Apple investments to increase her cash position to where she should be comfortable, albeit even less diversified.

So to back up a bit, Mom did not handle any of the investments prior to Dad's passing. She has basically just held course for several years ... and done well with that. Recently, she has been reading "stuff" that has caused her some angst that she believes can be addressed by increasing her cash allocation. Thus my original post; I was not sure what to tell her might be the options for "cash". I've always recommended that she have more diversification, but as I said in my last post, she sees this as their inheritance to us and prefers to maximize that. That is where I hope the fiduciary might be able to show her the volatility/dangers of staying with her allocation as-is.

Unfortunately, I live in a different state and simply can't make it to her place to go see the fiduciary next week. Having said that ... maybe I really need to make the trip regardless ...

 

[RunningBum]

Can you be phone conferenced in? Skype?

 

[Clone]

Mom did not handle any of the investments prior to Dad's passing.

...

Recently, she has been reading "stuff" that has caused her some angst that she believes can be addressed by increasing her cash allocation. ...

Something that would bother me just a bit here is the idea that someday, somebody might say the words that resonate with your mom and talk her into converting the portfolio into something that is safer and has a guaranteed return, because, you know, the market is just not that safe anymore. Perhaps recommend a nice little variable annuity like this one here...

Not sure exactly what might be done. I have seen enough goofiness in relatives as they age. For myself- it probably makes sense at some point to establish the money in a manner that protects me from falling prey to a salesman, while at the same time not turning complete control over to the heirs. Trusted advisers retire or move away, probably some institutional management where you don't have a person with a commission motivating them to churn your account.

 

[2017ish]

I missed this before. So it does sound like this will likely become an inheritance and be stepped up in cost basis. I'd still try to diversify, a little at a time might be a minor tax hit, you'd need to run it through a tax program to see. But off hand, LTCG should be no more than 15%, right?

-ERD50

Max is 20%, if you are in 39.6% nominal bracket and you also get to pay the 3.8% medicare surtax on net investment income.... http://www.irs.gov/pub/irs-access/f1041es_accessible.pdf

 

[mpeirce]

Max is 20%, if you are in 39.6% nominal bracket and you also get to pay the 3.8% medicare surtax on net investment income.... http://www.irs.gov/pub/irs-access/f1041es_accessible.pdf

Plus the state taxes, if applicable.

 

[Texas Proud]

The sentimental attachment IS there since that was my Dad's approach. I'm hoping a fiduciary might help her see that she should at least start considering a more diversified portfolio. She does have enough other, non-Apple investments to increase her cash position to where she should be comfortable, albeit even less diversified.

So to back up a bit, Mom did not handle any of the investments prior to Dad's passing. She has basically just held course for several years ... and done well with that. Recently, she has been reading "stuff" that has caused her some angst that she believes can be addressed by increasing her cash allocation. Thus my original post; I was not sure what to tell her might be the options for "cash". I've always recommended that she have more diversification, but as I said in my last post, she sees this as their inheritance to us and prefers to maximize that. That is where I hope the fiduciary might be able to show her the volatility/dangers of staying with her allocation as-is.

Unfortunately, I live in a different state and simply can't make it to her place to go see the fiduciary next week. Having said that ... maybe I really need to make the trip regardless ...

Just my opinion, but if crap hit the fan and things go so bad (which is what your mom is thinking if she has angst and wants more cash)... Apple is going to take a bigger hit than most... if we are going down the tubes as a society, then people do not need Iphones or Ipads.....

So having a love for Apple and wanting to increase cash because of all the bad that is going to happen just not complement each other....

Just sayin....

 

[tmeeker]

So my 74 year old Mom has been reading a variety of financial reports and has become very concerned that she does not hold much in cash. Her investment portfolio is very, very heavy in stocks with little in bonds and only about 2% in her cash account. She is concerned about the Chinese yuan taking over as the world currency and her investments becoming 'worthless'.

I've tried to talk with her about it and her need to discuss her financial holdings with an independent adviser (she will do this). I've also cautioned her about doom and gloom reports especially when associated with some sales pitch. I certainly don't know what to tell her about what the near-term future might hold (broke my darn crystal ball) nor what the outcome of the yuan taking over might be. Any thoughts?

All that said, are 'cash' holdings limited to paper money and PMs? Or, are there other equivalents?

If mom wants to go broke, hire a broker - they make sure she will be broke

 

[Steelart99]

Plus the state taxes, if applicable.

Yep ... a significant "ouch" factor.

 

[Steelart99]

Can you be phone conferenced in? Skype?

A possibility I may have to explore. Thanks for the suggestion.