What should my mother do with 30K excess cash?

[Anonymous]

She's 78 years old. She has a very predictable income of 5K a month and expenses of 3K. She has about 1 year of living expenses in the bank. What should she do with an extra 30K? It's currently sitting in a money market fund making .15%. The credit union is suggesting she invest in a 5 year fixed annuity at 2.4%. Is this a good idea? She doesn't need it now but wants to invest conservatively so as not to lose the principal. Aren't interest rates going up? Should she invest half of it now and wait for rates to rise to invest the other half? She is very frugal and refuses to pay a financial planner. She's relying on me which is not good. Any advice is truly welcome.

[Anonymous]

At that age, she needs to consider what will happen if something happens and she needs a nursing home, etc. Probably not worth it to invest it. 0.15% is no good, just shop at bankrate.com for the best rates on savings accounts or CDs. For example Capital One 360 (formerly ING Direct) is paying 0.75% on a standard savings account right now. I use them for our savings.

[Anonymous]

Anonymous wrote:At that age, she needs to consider what will happen if something happens and she needs a nursing home, etc. Probably not worth it to invest it. 0.15% is no good, just shop at bankrate.com for the best rates on savings accounts or CDs. For example Capital One 360 (formerly ING Direct) is paying 0.75% on a standard savings account right now. I use them for our savings.

Thanks for bringing that up. There is a clause in the contract stipulating that if she needs to go to a nursing home (not assisted living) that the money will be relinquished without penalty. She will stay in her home until the bitter end. Then she'll move to nursing home.

[Anonymous]

Keep in FDIC insured cash account

[Anonymous]

Have her send it to me!

[Anonymous]

Anonymous wrote:

Anonymous wrote:At that age, she needs to consider what will happen if something happens and she needs a nursing home, etc. Probably not worth it to invest it. 0.15% is no good, just shop at bankrate.com for the best rates on savings accounts or CDs. For example Capital One 360 (formerly ING Direct) is paying 0.75% on a standard savings account right now. I use them for our savings.

Thanks for bringing that up. There is a clause in the contract stipulating that if she needs to go to a nursing home (not assisted living) that the money will be relinquished without penalty. She will stay in her home until the bitter end. Then she'll move to nursing home.

I still think that's risky. What if she needs in-home care (like a helper) and insurance doesnt' cover that? Best to keep it fully liquid, like a savings account.

[Anonymous]

She's 78. Keep it liquid