 Quote:
Originally Posted by ziggy29
Not necessarily. What if she intends to pass all of it to her heirs?
I would agree that if she plans to tap a significant portion of this money for her own use, it should be locked up in things like CD ladders and the like. But if this is something that will be passed to heirs, there's something to be said for going for growth with at least a fraction of it.
Though I'd also say that if I were in her situation (80 years old and with $1M lying around) and I didn't need the money, I'd be tempted to start gifting it to my heirs if it's not in a tax-deferred account. That's especially true if I didn't have long term care insurance.
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I agree with some of your thinking but what if that $1m would have been in stocks. What would it have been worth now? Apparently the lady and her husband were very conservative people. Don't think you'll talk her into stocks. I do think she ought to start giving it away now and watch the smiles on the faces of her children. She'll never see those smiles once she's gone.
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