Author Topic: Helping mom decide where to put some cash at 65 yrs old  (Read 738 times)

MakeDemDollars

  • 5 O'Clock Shadow
  • *
  • Posts: 9
Helping mom decide where to put some cash at 65 yrs old
« on: March 18, 2017, 02:19:59 AM »
My mom is getting a small inheritance and will have about 5K extra to put somewhere. Currently has no other investments or retirement plans (was a waitress and never saved for long term). 65 yrs old.

She wants to put this little something away while she has it and just in case she lives another 20-30 years which she may if she has the same genes as her parents.

I'm thinking maybe in an IRA, if she's not too old to get one. She still works and will a couple more years. Small salary, nothing to save or very little.

If in an IRA or not, I'm thinking some mixture of total market ETF's for US, Intl, and bonds.

Looking to buy in and forget about it until needed some many years out.

Any ideas would be great. Thanks

Richie

  • 5 O'Clock Shadow
  • *
  • Posts: 20
Re: Helping mom decide where to put some cash at 65 yrs old
« Reply #1 on: March 18, 2017, 12:35:24 PM »
Can't say with certainty, but I feel as though she may be right at the age limit for both Roth and Traditional IRAs.  I could be wrong, though.

Have you looked at opening a Vanguard account, and putting her in a good mutual fund?  The Vanguard Life Strategy Growth Fund (VASGX) is super awesome, and is what I have.  It includes US, International (even emerging), and Bonds.

kellyincville

  • Stubble
  • **
  • Posts: 193
Re: Helping mom decide where to put some cash at 65 yrs old
« Reply #2 on: March 18, 2017, 01:39:38 PM »
Age limit for tIRA is 70.5.  There is no limit for rIRA.

Hargrove

  • Bristles
  • ***
  • Posts: 340
Re: Helping mom decide where to put some cash at 65 yrs old
« Reply #3 on: March 18, 2017, 05:55:22 PM »
Roth has no limit or mandatory distribution. Vanguard Roth IRA (60% VTSMX, 40% VGTSX) would be just fine if she really intends to leave it 20-30 years and doesn't want to deal with more complicated financial research. She could transfer it free to VTSAX and VTIAX (the Admiral class investment funds) when she hits 10k for even lower (from already tiny) fees. Those are funds that track basically the entire world.

Risk tolerance calculations and so on may matter as things come up and she changes her mind, but all she is likely to get out of this is 20-40k.

MakeDemDollars

  • 5 O'Clock Shadow
  • *
  • Posts: 9
Re: Helping mom decide where to put some cash at 65 yrs old
« Reply #4 on: March 20, 2017, 12:50:19 PM »
Have you looked at opening a Vanguard account, and putting her in a good mutual fund?  The Vanguard Life Strategy Growth Fund (VASGX) is super awesome, and is what I have.  It includes US, International (even emerging), and Bonds.

Will look into this thanks.

Risk tolerance calculations and so on may matter as things come up and she changes her mind, but all she is likely to get out of this is 20-40k.

I think if it built to 20K+ that would be great. Nice little bonus check for someone living on SSI down the road.


NoStacheOhio

  • Handlebar Stache
  • *****
  • Posts: 1510
  • Location: Cleveland
Re: Helping mom decide where to put some cash at 65 yrs old
« Reply #5 on: March 21, 2017, 06:12:31 AM »
Agreed, Roth IRA, VBIAX if you want a one-fund portfolio.
The first step is acknowledging you have a problem, right?

https://forum.mrmoneymustache.com/journals/digging-out-of-a-hole/