Hi all. Haven't been on in awhile. I have a question I hope someone can help with. My mom sold her house and is living by me in an independent senior living center. She wants to invest some of her money to earn a little bit of return, but does not want anything risky. She does not have a lot, but should be able to live for quite a few years in this situation. She recently contacted a bank and the Financial consultant had 2 recommendations. I'll see if I can decipher his chicken scratches! His first idea was 3 CD's. One 13 month at 1.5%, one 19 month at 1.75% and one 25 month as 1.85%. The next idea it looks like was Pimco, 1/2 investment grade bond with 2.5% dividends and 1/2 income fund at 4.25% dividend. Then he goes on to write blended yield=3.38%, anticipated 1 % growth, target return 4-4.5% /year. C share- no fee to buy if held 1 year, no fee to sell, if held less than 1 year-1% fee to sell.
I am supposed to meet with this guy soon and she has been bugging me. This is not all the money she has, only part of it that she is not sure what to do with. The rest is invested with another bank and I think it is invested alright.
I have to preface this by saying that I have my own investments that are mostly in vanguard, fidelity and then a bunch of stocks that my husband inherited that were invested by his brother who was an investment banker, so my portfolio is doing great, but I am at a loss as to what to recommend to my mother. Also, I just don't have the time to really do any research and if I invest her money and it loses money as of course the market cycles, she will not be happy with me. I would prefer she have someone else do her investing. As far as she knows, there is no fee for this, but I will ask when I see the consultant.
She is 86 and in pretty good shape. She is independent but can get extra help at this facility if she needs it. She would probably have enough money even if it doesn't earn anything to last a year in a nursing home, but then would probably be on Medicaid at that point.
Thanks for your time! Miss Prim