JohnnTexas
Dryer sheet wannabe
- Joined
- Nov 7, 2014
- Messages
- 16
Hi All, looking for some advice for my mom. My dad passed away 9 months ago. Mom is 87 yrs old. Dad had an IRA at Fidelity that was self managed. Mom doesn't know a lot about investing so she was talked in to moving the money to a managed account at Fidelity. Today she called me to say she doesn't like the fact that she is paying almost $4K in annual fees.
I suggested first thing is get out of the managed account and move to a Non managed account. She has about $420,000 in this account.
She also said that she thinks she might want to move all of this from the IRA managed account to a IRA CD at a local bank paying 1.5% for 18 months (sleep better at night knowing she won't lose the principle. She didn't really understand the meaning of inflation until I explained it to her and how she is barely keeping up with inflation being all in CD's)
I don't know all of her financial details as I live out of state. I will be heading home for the holiday weekend and plan to spend some time with her and review what she has. I believe her annual expenses are about $55,000. House is paid for and worth about $350K.
Not sure what her SS amount is and I believe she has a small pension but will also verify this.
I am thinking she can move about $100,000 to the CD this year and put the rest in Mutual Fund at Fidelity with an Assest Allocation of 40% equities and 35% bonds and 25% cash(cd's for 18 ,on this and then reassess).
I also need to see what her RMD amount will be.
Any suggestions on a better set up for her? She is fairly health for 87 and wants to stay in her house (hates the thought of a nursing home or a retirement center).
She wants to preserve as much principle as possible as she doesn't know how long she will need it to last and what her needs might be I her final years.
Thanks for any suggestions and direction.
I suggested first thing is get out of the managed account and move to a Non managed account. She has about $420,000 in this account.
She also said that she thinks she might want to move all of this from the IRA managed account to a IRA CD at a local bank paying 1.5% for 18 months (sleep better at night knowing she won't lose the principle. She didn't really understand the meaning of inflation until I explained it to her and how she is barely keeping up with inflation being all in CD's)
I don't know all of her financial details as I live out of state. I will be heading home for the holiday weekend and plan to spend some time with her and review what she has. I believe her annual expenses are about $55,000. House is paid for and worth about $350K.
Not sure what her SS amount is and I believe she has a small pension but will also verify this.
I am thinking she can move about $100,000 to the CD this year and put the rest in Mutual Fund at Fidelity with an Assest Allocation of 40% equities and 35% bonds and 25% cash(cd's for 18 ,on this and then reassess).
I also need to see what her RMD amount will be.
Any suggestions on a better set up for her? She is fairly health for 87 and wants to stay in her house (hates the thought of a nursing home or a retirement center).
She wants to preserve as much principle as possible as she doesn't know how long she will need it to last and what her needs might be I her final years.
Thanks for any suggestions and direction.