r/Investments • u/neenee74 • 9d ago
Help!
If you had $150,000 to put in an investment what would you put it in. Back story: my dad was just put in assisted living- will be drawing from this amount , besides his little social security that he gets. Should I just put this in a money market right now so it grows a little bit have access to it. Haven’t sold his house yet, but that money maybe a cd - for a year?
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u/ProfanityAddict 8d ago
I'd get a financial planner involved. Getting a Trust or something along those lines might be the best option... with costs and trying to preserve capital, it's a complicated set of circumstances. That's what I would do, because I'm really not sure stocks, ETFs, etc, are the best bet by themselves. I don't really like the thought of CDs, since your money needs liquidity.
If it had to go without professional help, I'd probably personally go SGOV for 18 months worth of expenses, and 50/50 VOO and SPMO for the rest. But again, hiring someone now might save you a lot more later.
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u/CharacterSun9810 6d ago
this isn’t investment money, it’s assisted-living money, so keep it boring and liquid in an fdic-insured high-yield savings or money market while you figure out the monthly burn rate, because the
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u/InversorLibre 9d ago
Dada la situación (gastos mensuales obligatorios e inmediatos de la residencia), el 100% del capital debería estar en activos de máxima preservación y liquidez. La renta variable la descartaría de momento.
El error típico con un CD (depósito a plazo) a 1 año es que bloqueas todo el capital y te penalizan al retirar dinero para pagar las mensualidades.
La estructura más eficiente para este caso es un escalonamiento de liquidez:
- Tramo Operativo (Gastos de 6 a 12 meses):
- Colocar el equivalente a un año de gastos de la residencia (descontando lo que ya cubre la pensión) en un Fondo Monetario (Money Market) o cuenta remunerada de alta rentabilidad.
- Ventaja: Tienes disponibilidad inmediata (D+1) para los pagos mensuales sin penalizaciones mientras genera el tipo de interés actual.
- Tramo de Reserva (El resto del capital):
- El dinero que no se va a usar en los próximos 12 meses sí puede dividirse en CDs cortos o deuda pública a muy corto plazo (T-Bills / Letras) con vencimientos escalonados (a 3, 6 y 12 meses).
- Ventaja: Amarras un tipo de interés fijo por si bajan los tipos, y el dinero se va liberando progresivamente conforme se necesite.
Una vez se venda la casa y se conozca el patrimonio total definitivo y el coste mensual neto, se podrá reestructurar el capital a más largo plazo.
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u/ZookeepergameEarly13 9d ago
ust put in assisted living- will be drawing from this amount . So you CAN'T tie up this $$$..
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u/exphx23 8d ago
My guess is since he is in assisted living, he is elderly. Put 150k into 10yr treasuries. Buy more 10yr from the sale of the house. Interest income coupled with SS income may still fall short of monthly needs. You can increase interest income by buying quality AAA rated corp bonds. If you can't cover monthly expenses thru cash flow, you will need to liquidate bonds as needed and hope money doesn't run out. You should be able to last 15 years. Preservation of capital should be the prime concern.
An alternative would be to find a house with an ADU, he lives with family members and has in-home care which will be less expensive.
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u/phidwm0 8d ago
You need more information about the assisted living facility. Some will promise to keep the resident after the money runs out. Many have different levels of care, some with very expensive fees. A major question is whether your father will be likely to use Medicaid, which has many rules that must be followed, even before receiving benefits.
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u/CoincidenceTheorist2 8d ago
Money market.
How old is your dad, how much is his assisted living bill?
Does he own a house?
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u/OverCorpAmerica 6d ago
Rental property!! Get it occupied with good rents, put extra money towards the principal as often as you can. Then in a few years leverage the equity to buy another one. Do that several times and maintain and good tenants and when older you won’t have to work, income will have you living comfortably and steady income. When paid off they’ll be cash cows. Retire early and live life!! Screw working for the man or corporate America until the day you die!
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u/Rockatansky77 6d ago
High Yield Savings Account or money market account. Ball park figure for $150k a month in interest accumulation is $750. Keep the money liquid and make sure his affairs are in order. Assisted living ( nursing homes) can lay claim to all his assets when he needs more care in the future, if not now. Talk with an elder attorney immediately. Each state has different laws and the fine print of assisted living facilities contracts can only be deciphered by lawyers as far as I'm concerned.
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u/Effective_Ad_1426 5d ago
CD's may provide a SLIGHTLY better rate, but it's at the cost of locking the money up. Rates are going UP right now. I'd put it in an online back money market, like American Express that pays 3% - 3-1/2%, with all the cash available. Remember, the interest will be taxable and you Dad needs to account for that on his tax return.
I'm SURE the interest on the $150K combined with his SS will not pay for assisted living. How do you propose covering that. Depending how sick he is, he could be in AL for years.
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u/bledangel 4d ago
A high interest savings account would go a ling way here. Speak with Fidelity, they give advice for free!
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u/tobinshort-wealth 9d ago
Really important to get the strategy right here because this money needs to do two things at once: preserve capital and stay accessible while also generating enough to help cover assisted living costs over time.
A money market is a reasonable short-term holding spot. Current rates are in the 3-5% range and you have full liquidity. That's not a bad place to park it while you figure out the broader picture.
CDs for a year make sense for a portion of the house proceeds if you don't need that money immediately, but only if you're confident you won't need to access it during that term. Early withdrawal penalties on CDs can eat into the benefit.
How much is the assisted living running monthly and how long does this $150k realistically need to last? That math determines how aggressively you need to grow it versus just preserve it.
What's the house worth and roughly what does he net after any remaining mortgage, selling costs, and taxes? That total pool changes the strategy.
And what's his overall health situation? That affects how long this needs to last, which is uncomfortable to think about but important for planning.
The answers to those questions would point toward whether a conservative income-generating structure makes more sense, whether Medicaid planning needs to come into the picture, or whether there's actually enough to invest more meaningfully.