Author Topic: AA for parents' funds in taxable account  (Read 556 times)

Fencesitter

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AA for parents' funds in taxable account
« on: June 17, 2018, 09:26:20 AM »
I've been a long-time lurker, and now it's time to tap the community's wisdom for my own specific issue.

My parents kicked ass at saving and are now enjoying a well-deserved traditional age retirement. They also have transferred a portion of their stache to me over the last few years as "gifts" of single stocks. Their hope is for this money to be inheritance, but being pragmatic, this money will also be available if one of them depletes their assets in end-of-life care. They hope to not need this money. Their regular expenses are covered by SS and pension, and they only need their stache for some kick-ass international travel they've been doing. This account is maybe 10% of their overall stache. To me, this is 100% their money and is earmarked for parental end-of-life care.

Anyway, they trust my opinions, and last year they said I should manage the account like I would my own assets. I sold off some of the stocks and bought VTI. At this point the account is approximately 60% VTI, 25% a stock I don't plan to sell, and 15% a stock I plan to sell before the end of the year. Because this money is for older folks, I'm wondering if I should put that 15% in bonds for some safety and security. (My parents have said they aren't in bonds at all, which makes me a little nervous for them). Should I do this? If so, should it be muni bonds? I just started trying to learn about bonds and bond funds. Any good resources to learn more?

Thanks in advance.

MDM

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Re: AA for parents' funds in taxable account
« Reply #1 on: June 17, 2018, 10:05:46 AM »
I just started trying to learn about bonds and bond funds. Any good resources to learn more?
Fencesitter, welcome to the forum.

You could do much worse than some form of Three-fund portfolio - Bogleheads.

Even simpler, the LifeStrategy Moderate Growth Fund or similar would be a very reasonable choice.

If you want to get fancy, consider Tax-efficient fund placement - Bogleheads, but simplicity is worth something.