ExFlyBoy5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Some of you may have read my earlier post about having some issues with my Dad and financial control. Well, the hard part (convincing him that I should help out more w/ his finances) is over and now it's time for the logistics. He is 100% in concurrence that I manage his portfolio and that indeed his management of said funds has been "slipping". So, here are the details: Total assets are in the lower 7-figures range. He lives independently in his paid for home and is in pretty good physical shape (and abilities) for his age. His day to day expenses are covered by SS and his yearly RMDs and he has yet to draw down any principal. When it comes time, he will move in with us and if need be, we will hire any help required to keep him in the home. Obviously, sometimes this doesn't work out for whatever reason, but those are the current assumptions. His assets are distributed as follows:
Home: 41% (assumption is we have a fire sale and sell at lowest price)
Cash: 26%
Equities: 33%
The biggest issue I have is the relatively large amount of cash holding. It's some physically held cash (safe deposit box) but mostly in two separate checking accounts drawing less than 1% a year. So, I am thinking of shifting about 1/2 of that to short term or intermediate bond funds, something similar to VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares). So, what do the fine folks here think? What would you do in my (or my Dad's) position? Am I over thinking this and perhaps I should leave the cash as is? Percentage wise it doesn't seem too crazy for his age, but it's a large sum of money and technically it's losing money just sitting there.
Home: 41% (assumption is we have a fire sale and sell at lowest price)
Cash: 26%
Equities: 33%
The biggest issue I have is the relatively large amount of cash holding. It's some physically held cash (safe deposit box) but mostly in two separate checking accounts drawing less than 1% a year. So, I am thinking of shifting about 1/2 of that to short term or intermediate bond funds, something similar to VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares). So, what do the fine folks here think? What would you do in my (or my Dad's) position? Am I over thinking this and perhaps I should leave the cash as is? Percentage wise it doesn't seem too crazy for his age, but it's a large sum of money and technically it's losing money just sitting there.