Investing money
Hi Terry, listen to you all the time. I have a question. My mother recently sold her home and has about 225,000 that she doesn’t really know what to do with. Should she just put it in a 1 to 2 year CD or should she do something else she is wanting to put $100,000 away for me longer-term her daughter she did put away 100,000 for a two month CD because it yield her over 4% but there’s another hundred thousand that she’s not sure what to do when she wants to put it long-term hoping that will make more money for me in a few years, so I really don’t know what to suggest for her. Can you make some suggestions? Thank you.
Terry Says
This is where that money belongs — staggered purchases of 6-month Treasury Bills. The interest will drop back into her linked bank account. Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
And while I’m at it, this is the perfect time to see an estate planning attorney. She should create a revocable living trust (watch this video) and then name her accounts, including Treasury Direct, in the name of the Trust. That gives you access to the money to help her if needed, while she is alive, but down the road.
