Investing proceeds from home sale to financially support for remaining years
Hello, my mother is 93 years old. She is prepping to move her to a senior living facility. Estimate after the sale of her home is apprx. $350,000 to invest to support her in her remaining years. She has about $25,000 in other investments/savings. She is fairly healthy. Can you share investment options we can research to provide financial support for her remaining years. Thought on 5 year annuity.
Terry Says
There is only one thing I would do with this money. Read this: T-Bills beat CDs – Terry Savage
I would buy U.S. Treasury bills of 3 and 6 month maturities — staggering the purchases every two weeks. So if you get about $350,000, I would immediately purchase $25,000 in 6 month bills, and another $25,000 in 90 day bills, wait two weeks, and do the same thing again, and again, and again.
That way, the bills will mature on a staggered basis. If rates move higher you’ll earn more. If rates, as expected, drop, then you’ll earn less. But you won’t lose a penny!
Now, there is one more critical ingredient in this plan. Your mother should have her own estate plan. Preferably a Revocable Living Trust. Watch this video to understand: terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
If you create the Revocable Living Trust immediately– and it could be done within a week, but the time you get the proceeds of the house, then you should open a bank account in the name of the RLT — and open your TreasuryDirect.gov account also in the name of the RLT.
The RLT (as you’ll learn when you watch my video) will have a named successor trustee (or perhaps you will be named co-trustee with your mother). Then, if she is unable to manage her money, you can immediately step in to handle things without a court order.
Please write back to the email you receive saying your question has been answered. And if you don’t have an estate planning attorney, search here: Find A Lawyer – Lawyer Near Me | Search Attorneys (search-attorneys.com) Don’t delay!!
