Anonymous wrote:

Anonymous wrote:I think it depends on what you plan to do with any leftover. If the pure use of the money is to pay for care and make it last as long as possible and you are not concerned with what is left then I would inquire with the home about paying six month or a year or two up front and asking for a discount. I think that would produce your highest yield on the money with safest return. I have not looked at the numbers but it might be worth looking at an immediate 5 year annuity. That might produce the highest return even though I generally hate annuities.

Not to be gruesome but there could be lots of reasons to it pay upfront (which I'm sure they wouldn't do anyway).

FDIc insurance limits wouldn't suffice if he is the named owner of the account alone.

Anonymous wrote:I think it depends on what you plan to do with any leftover. If the pure use of the money is to pay for care and make it last as long as possible and you are not concerned with what is left then I would inquire with the home about paying six month or a year or two up front and asking for a discount. I think that would produce your highest yield on the money with safest return. I have not looked at the numbers but it might be worth looking at an immediate 5 year annuity. That might produce the highest return even though I generally hate annuities.

Not to be gruesome but there could be lots of reasons to it pay upfront (which I'm sure they wouldn't do anyway).

I think it depends on what you plan to do with any leftover. If the pure use of the money is to pay for care and make it last as long as possible and you are not concerned with what is left then I would inquire with the home about paying six month or a year or two up front and asking for a discount. I think that would produce your highest yield on the money with safest return. I have not looked at the numbers but it might be worth looking at an immediate 5 year annuity. That might produce the highest return even though I generally hate annuities.

There are many nursing homes that will not accept residents who are paying with Medicaid, but who will keep current residents after their money runs out and accept what Medicaid will pay at that time. They generally want you to pay at least a year at market rates before switching to Medicaid.

It sounds like you will have enough money from the sale of their house to cover them in a nursing home for much more than a year. Before moving them in somewhere, I would negotiate to make sure that if they outlive their funds the nursing homes will accept Medicaid for however much longer they live. They won't qualify for Medicaid until they have run through all their other assets.

PS very sorry you are in this now...Very hard time.

Don't think I would invest this money. the stock market can go down as well as up, but the nursing home bills are only going up. You might try putting it in an irrevocable trust if you have POA.

Anonymous wrote:Since this is short-term money (will be used up within 4 years) and losing it could mean bad things for your parents, I personally would put it into a high-yield checking account.

Do you have a plan for when the money runs out?

Wondering the same thing. At $8,000 a month, that money's going fast

Since this is short-term money (will be used up within 4 years) and losing it could mean bad things for your parents, I personally would put it into a high-yield checking account.

Do you have a plan for when the money runs out?

The site is actually bogleheads.org. Good luck, OP.

Go to boggleheads.com and ask them.

I would never use Morgan Stanley. With a very little work you can do this yourself.

You mean your parents', and how about a regular bank account for easy withdrawal by the nursing home?

If I knew I was going to need the money over the next couple of years, I would put it someplace safe like an FDIC insured savings account. I know that savings accounts are paying almost no interest (you can do a little better online, try Ally) but investments are for money you will need in the long term, not that near future. It doesn't sound like this is money where you can take a risk of a large short-term loss. Therefore, you need to stay out of investments (stocks and bonds) and in savings (savings accounts and CDs).

I would call your Morgan Stanley advisor and ask what they would do for you - what they would recommend for strategies.

I would next call Vanguard and ask the same question.

Get an understanding of fees and see what you think is the best solution (including least amount of stress)

Haven't been there but are there other assets going into the account? If not, do you really want to pay 1% on 400,000? How much risk do you want? BTW, very sorry you are going through this.

Hopefully the subject should be self-explanatory. But I'm coming up on the sale of my parent's (my childhood) home, sad sad. After all is said and done with taxes and fees, I'm expecting to see about $400,000, which will need to be parked to make those $8,000 a month payments to the nursing home.

We have a Morgan Stanley account ourselves, but I'm loath to pay 1.4% to them, and would try to negotiate it down to 1% for rather passive investing. But I do mildly like the diversity they'd recommend to us and could set it up on autopilot to make the payments, since it would require sale of securities, or setting aside enough to make a few month's worth of payments.

Any thoughts from those who've been in this situation?

TIA