Hey Mustachian's!
I am new here as of this morning, introduced myself already, sorta. I wanted to email Mr. Badass aka Mr. Money Mustache, instead I will try the forums like he suggested. I would love some advice on ways to produce more income on my investments and a plan to move some to Vanguard with no idea where to start, I will leave my bonds at the bank with zero fees. To summarize: My mother has terminal dementia, lives with me, I have absolutely no idea if or when she will need assisted living housing in the future but I would like to be prepared just in case. My plan all along is to care for her at home until the end, but Mom is declining fast, her behavior is pure innocence but she gives me zero personal space. I have enrolled her into an adult day care to start next week, possibly one to two days a week for now, $70 a day. This is just the beginning. Assisted living facilities are 4K to 6K a month. But again, I have no clue if I will ever need to place her in one or not. It hurts to say this next part, I am feeling the disease will take her down within 2 years.
I will give some details on financial situation as of now, I will be happy to add more later if needed or requested, I don't want to over do my first post.
I would like to be able to put money aside in a Vanguard fund to grow but have access to if needed for the aforementioned. But I am not confident with my plan. Hence why I am requesting help.
The info below is where I stand now, I moved the investments from two different firms into one firm, in October. I am very dissatisfied with mistakes made at the new firm, so now the accounts are, as I write this, in transfer process from that firm to my bank to hold with no fees until I decide where to invest the listed except the bonds and REITS will stay at my bank.
I am 53
Own my home
Zero debt
Mom is 73
Mom's social security income and IRA RMD are included in the household income.
$1,100,000.00 in investments =
$311K - IRA (30K of the IRA sitting in cash)
$350K - Bonds, Tax exempt
$120K - REITS x 3 Tax exempt total $120K (2 are upside down total $33K, original value $60K, not sure what to do with that!)
$ 23K - ROTH IRA
$295K - Taxable investment account - stocks, mutual funds, etf's, etc. (25K of the account sitting in cash)
Annual income = 61K roughly
$ 31K - includes interest from bonds, dividends from 1 REIT and the taxable account
$ 9K - RMD estimate after taxes
$ 21K - Mom's social security retirement
The 31K is investment income from $707K invested. The total does not include the 25K sitting in cash, nor the 33K in REITS upside down.
Real Estate =
$400K in home equity line, 0 balance, 2.9% interest for first year as of May 28, 2018.
Please remember, the goal is temporary and feels urgent in the sense of producing more income to set aside or using what cash is available, etc. for the unknown future of my mom. My goals and needs will change in a couple of years give or take.
Questions: The 25K sitting in cash, do I invest to receive more income or should I toss it in a fund for short term growth and use when needed.
In the IRA and taxable accounts the firm purchased a few stocks late 2017, that failed. The dividends are not great, one of the stocks is GE. FAIL
The 30K in cash in IRA - what to invest in for growth.... Vanguard something or another....
Do I use the home equity line before digging into the principal?
I have more questions but feel I have written enough for now, I will give more information later if needed. I appreciate anyone taking the time to read my post and possibly guide me through this heartfelt temporary journey.
Thanks so much! Robyn
EDIT: Please understand my post's intent is regarding investing and income options for extra cash that I listed above and/or using HELOC vs principal if situation arises in future for caregiving costs. And Vanguard questions. I appreciate the responses offering support and guidance regarding how to care for for my mother but I have that part handled. Mom is not eligible for any type of assistance. Hospice is not needed as of yet. I have talked to attorney's, doctors, social workers, home health care, Medicare, Medicaid, etc. I have been on a support group for almost 2 years. I have been down this road already with ex mother in law Alzheimer's. =)