seeking recommendations


M

matt

hello, my father in law is on the verge of collecting a nice sum of
money due to inheritance. he's asked for advice on what to do with
his money. i'm thinking he should ladder on CD's the majority of his
inheritance and perhaps seek mutual funds on a small portion.
however, the rates on CD's seem really low at this time. what else
should i be researching?

thanks
 
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B

BMS

To give the best ideas, we need more information.

How old is he?

What responsibilities does he have?

How's his health?

The rest of the portfolio is in what?

What about your mother-in-law?

Laddering CD's means a need for liquidity, Why?

Answer some these questions and you'll get better ideas.
 
H

HW \Skip\ Weldon

hello, my father in law is on the verge of collecting a nice sum of
money due to inheritance. he's asked for advice on what to do with
his money.
I've heard it said (by a lot of folks with gray hair) that anytime a
family member asks for investment recommendations, the best response
is that they seek out professional advice.

In other words, YOU stay the heck away from mixing family and money.
<grin>


-HW "Skip" Weldon
Columbia, SC
 
C

Cal Lester

EXCELLENT ADVICE ! ! !

Cal


HW "Skip" Weldon said:
I've heard it said (by a lot of folks with gray hair) that anytime a
family member asks for investment recommendations, the best response
is that they seek out professional advice.

In other words, YOU stay the heck away from mixing family and money.
<grin>


-HW "Skip" Weldon
Columbia, SC
 
J

John A. Weeks III

matt said:
hello, my father in law is on the verge of collecting a nice sum of
money due to inheritance. he's asked for advice on what to do with
his money. i'm thinking he should ladder on CD's the majority of his
inheritance and perhaps seek mutual funds on a small portion.
however, the rates on CD's seem really low at this time. what else
should i be researching?
What is he planning to use the money for? What kind of risk/reward
tollerance does he have? Does have have any other financial planning
problems that need to be solved? What are his goals? It is really
hard to give a good answer without a little more information here.
Lots of things can make sense, anything from real estate, government
bonds, tax free muni's, and the stock market.

-john-
 
M

matt

answers inline:

BMS said:
To give the best ideas, we need more information.

How old is he?
early 60's
What responsibilities does he have?
very little. provide for himself and his wife. they live in small
apartment (low monthly rent/utilities). owns 2 cars (uses one for
work). i would guess expenses in total are on the order of
1200-1500/mo. i'd imagine his job enables him to pay his current
living expenses. he grew up a farmer and has little investing
experience and not much savings to speak of (aside from this
inheritance). i've been in the stock market for severals years but
i'm young and my aggressive experience is less then suitable for him.
How's his health?
he's always been strong. i'm a little conscious of a cough he's been
carrying for some time now. no medical insurance :-(. this would be
a necessity until medicare kicked in.
The rest of the portfolio is in what?
a savings account at best.

What about your mother-in-law?
dependent on him. she does not work.
Laddering CD's means a need for liquidity, Why?
perhaps it's just a personality trait from my standpoint. i always
like to be within a short reach of my savings. also it seems with the
current low rates on cd's, it seems more prudent to be able to roll
your money into better long term rates as the market improves.
Answer some these questions and you'll get better ideas.
thanks!
 
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R

Ron Peterson

matt said:
very little. provide for himself and his wife. they live in small
apartment (low monthly rent/utilities). owns 2 cars (uses one for
work). i would guess expenses in total are on the order of
1200-1500/mo. i'd imagine his job enables him to pay his current
living expenses. he grew up a farmer and has little investing
experience and not much savings to speak of (aside from this
inheritance). i've been in the stock market for severals years but
i'm young and my aggressive experience is less then suitable for him.
He might want to look into the possibility of buying into a retirement
community or a condo unless his rent is very low.
he's always been strong. i'm a little conscious of a cough he's been
carrying for some time now.
Some blood pressure medications cause a cough that can be alleviated by
switching medications.

no medical insurance :-(. this would be
a necessity until medicare kicked in.
Major medical insurance would keep him from going bankrupt at a lower
cost than full medical insurance.
perhaps it's just a personality trait from my standpoint. i always
like to be within a short reach of my savings. also it seems with the
current low rates on cd's, it seems more prudent to be able to roll
your money into better long term rates as the market improves.
It's a good idea to ladder but don't go to far out on maturities until
interest rates increase.

A small amount in a mutual fund would help diversify his portfolio, but
I don't know which fund would be best.
 

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