how would you allocated this elderly widow's assets: house sold and all assets liquid - she has excellent medical insurance for life, content in an assisted living place, all living expenses covered thru social security. approx what percentages would you recommend be invested in stocks, bonds, CDs, elsewhere? a return on this money is not needed for her to live on - but of course a decent return wouldn't hurt. thanks!
an investment counselor's advice, pls
Sep 30, 2006
6 Replies
You say she's in "assisted living." Has she or her advisors planned for the time when she needs full time nursing care? The costs of that can run say $70k a year for a mid-quality facility, covering room and board and some medical support.
thanks - full time nursing care would be covered by her insurance
What does she want the investment for? To grow for heirs?
Pardon the grim, somewhat intrusive tone of the following questions: Have you any idea what her life expectancy is? Or just post her age, and this might be helpful. Also, does her will leave her stocks etc. to a trust or to a relatively young person, such that the stocks can continue growing over at least, say, 20 years? Once you have a timeframe, experiment with some of the free online asset allocation tools listed at
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for ideas, and discuss this with her, as the law may require. (Wasn't sure if that went without saying.) Alternatively, use the information gleened from these tools to prepare for a meeting with a for fee financial planner. You and she might also read up on "estate planning." There may be some tax implications you want to bear on mind, depending on exactly what we're talking here, like maybe an IRA or annuity, or how her state treats estates when she passes. I am not an investment counselor per se. I am only parroting some of the basics, some of which derive from personal experience with one of my own relatives.
Laddered CD's or Goverment bonds. No risk. She's an elderly widow. BUT when she leaves the assisted living place and goes to a Nursing Home, unless she has LTC, she will start depleting her wealth in a hurry and wind up on medicaid (good bye Social Security) after she is finished paying all she can as a private pay patient..
Dave
thanks dave - excellent!
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