Where to put $$ after home sale?

[Anonymous]

I’m selling my dad’s house for him. He has dementia.

I’ve never sold a house before…

Where do you put all that money?

Placing it all in my father’s bank account seems nuts.
Could give some to dad’s financial advisory to invest for him?

Is there anything else to consider?

[Anonymous]

I invested my mom’s house sale proceeds. It’s worked out well for her.

[Anonymous]

How old is your father, and what will his financial needs be? If you are on the younger side of being an older adult, you might be concerned about longevity risks (risks of running out of money). If you are on the older side, you might be concerned about losing your money (market risk). If the money isn't needed and going to someone younger, then it could be invested in something riskier. I would suggest not losing the money to a financial advisor, or finding one that is fee only. If your situation is that he is on the older side, and you are preserving capital for his expenses, then I would suggest opening up a Vanguard or other money market account. The return is 5% or so right now, which is very good, and it's very low risk.

[Anonymous]

if over a milliion, fee only financial advisor will be worth it, esp when it comes to taxes and dealing with any other income streams (rmd etc) . less than that, probably divided between low low cost low risk mutual funds and some money market/hysa accounts. how much are we talking and what are current monthly expenses (assume AL or memory care?)

[Anonymous]

Anonymous wrote:if over a milliion, fee only financial advisor will be worth it, esp when it comes to taxes and dealing with any other income streams (rmd etc) . less than that, probably divided between low low cost low risk mutual funds and some money market/hysa accounts. how much are we talking and what are current monthly expenses (assume AL or memory care?)

Estimated about $900,000. The money isn’t needed for care, but that costs around $9,000/mo.

[Anonymous]

Anonymous wrote:How old is your father, and what will his financial needs be? If you are on the younger side of being an older adult, you might be concerned about longevity risks (risks of running out of money). If you are on the older side, you might be concerned about losing your money (market risk). If the money isn't needed and going to someone younger, then it could be invested in something riskier. I would suggest not losing the money to a financial advisor, or finding one that is fee only. If your situation is that he is on the older side, and you are preserving capital for his expenses, then I would suggest opening up a Vanguard or other money market account. The return is 5% or so right now, which is very good, and it's very low risk.

Thank you!

Age is 90
Doesn’t need this money for care

I thought about investing this with Vanguard — maybe 50-60% in S&P fund since he won’t need this money anytime soon.

[Anonymous]

Forgive me for being crass but is he ever going to need this money? You could reach out to an estate attorney and ask what makes the most sense financially (would a trust make sense for example).

[Anonymous]

Anonymous wrote:Forgive me for being crass but is he ever going to need this money? You could reach out to an estate attorney and ask what makes the most sense financially (would a trust make sense for example).

He has a trust already. I’m wondering where to invest or place the money.

[Anonymous]

Op if he really doesn’t need the money for his care, I would invest in vanguard or fidelity preferably with a payable on death account (to avoid probate) to his heirs. Does he have a will?

[Anonymous]

I dumped a bunch of money from a home sale into the stock market at the absolute worst time a few years ago…didn’t want to miss out on upside…but am risk averse so dollar cost averaging/monthly purchases would have been more suitable.

[Anonymous]

This feels trollish. His anticipated 9k/mo future care is funded and there is already a trust. Why are you asking about this on DCUM instead of talking to the attorney and financial advisor?

[Anonymous]

High yield savings account and if it’s over $250k, then another account so it’s all FDIC insured.

[Anonymous]

Anonymous wrote:Op if he really doesn’t need the money for his care, I would invest in vanguard or fidelity preferably with a payable on death account (to avoid probate) to his heirs. Does he have a will?

Thank you.

Is payable on death the same as transfer on death?

Yes, he has a will and trust.

[Anonymous]

Anonymous wrote:This feels trollish. His anticipated 9k/mo future care is funded and there is already a trust. Why are you asking about this on DCUM instead of talking to the attorney and financial advisor?

I may not want to place the money with the advisor. Therefore, I do not want to ask the advisor for advice.

What attorney?

[Anonymous]

Anonymous wrote:I dumped a bunch of money from a home sale into the stock market at the absolute worst time a few years ago…didn’t want to miss out on upside…but am risk averse so dollar cost averaging/monthly purchases would have been more suitable.

I’m glad I asked here.

Thanks!

OP