It sounds like she has a net worth of $460KHouse (really a condo) is worth $215k according to Zillow.
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Emergency funds: $60k, guessing this is 12-14 months
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Total Portfolio: $185K (not including two individual stocks she wants to keep
You would want to figure out the tax situation with the individual stocks but if she sells them off slowly she might be able to keep in the income range where the federal long term capital gains tax rate is 0% so you should look into that.
They are not tax efficient so they do not work well in taxable accounts but for the money in the retirement accounts I would suggest using a target date retirement income fund since that would be appropriate for her. It would also be able to manage easier if something happens to you. She should also have plans and paperwork so that someone else could help her out if you are unable to.
The target date fund will also be easier for her to understand when she is older and might have more difficulty in understanding what is being done with her money. If she is in assisted living and says something to a caregiver about you doing something funny with her money then they may take it very seriously and get the state involved and get her finances investigated. Keeping her finances simple will help avoid any misunderstandings and to show that you are properly managing her funds well.
For the money in the taxable accounts I would just put it into things like CDs, money market funds, or high yield savings accounts depending on what the interest rates are.
Be sure that all the proper paperwork is in place for you to manage her accounts if you need to especially at Vanguard. People have posted about Vanguard not honoring a valid POA which is not on their form and being very difficult to work with in managing a relatives finances.
Statistics: Posted by Watty — Sun May 19, 2024 10:49 pm — Replies 5 — Views 934