Hello,
My parents are are 76/74. Mom just broke her hip, they will be moving into assisted living while she heals. Parents are starting to have memory issues and I am encouraging them to stay in assisted living. I can see the decline over the last two years, doctor is worried how many years they can live alone. I have POA and Healthcare POA on both and am trying to get everything setup for them.
Dad plans to stay in assisted living with my mom, but drive home at times to piddle in his workshop. Parent's want to move back home in a month, I don't believe they will be able to, that is a later discussion. I want to make sure they can afford care, hopefully without having to sell the family ranchette (dad would have a hard time letting it go).
New expenses:
Assisted living. Estimating $4.5K to $6.5K per month depending on mom's mobility after inpatient rehab is complete. My gut says it will be on the higher end. The charge month to month (no buy in).
Income:
Social Security/Pension. $50K per year. (this covered their expenses prior to my mom's accident)
Assets:
House/ranchette paid for $600K+
IRAs $2.5 million (53% US stocks, 17% INT stocks, 30% bonds)
Taxable CDs in local banks plus I-Bonds, around $500K
Combined, they have about 58% of their funds in equity.
I would like feedback on the asset allocation. I and other sibling live about 600 miles away. We are trying to get them to move closer to us. Parents say they are open to move once grandma, 96, passes. Dad doesn't want to leave his rural community, so nothing firm.
I am comparing their current allocation to Fidelity and Vanguard target funds for their ages. The target funds for their age range seems to be about 35% equity. I had planned to slowly lower their equity portion over time, basically taking the RMDs and putting them into bonds/CDs in their taxable accounts. (I had no long term asset allocation picked, I was just reluctant to make huge shifts)
Should I quickly shift more of their IRA into bonds?
thank you
My parents are are 76/74. Mom just broke her hip, they will be moving into assisted living while she heals. Parents are starting to have memory issues and I am encouraging them to stay in assisted living. I can see the decline over the last two years, doctor is worried how many years they can live alone. I have POA and Healthcare POA on both and am trying to get everything setup for them.
Dad plans to stay in assisted living with my mom, but drive home at times to piddle in his workshop. Parent's want to move back home in a month, I don't believe they will be able to, that is a later discussion. I want to make sure they can afford care, hopefully without having to sell the family ranchette (dad would have a hard time letting it go).
New expenses:
Assisted living. Estimating $4.5K to $6.5K per month depending on mom's mobility after inpatient rehab is complete. My gut says it will be on the higher end. The charge month to month (no buy in).
Income:
Social Security/Pension. $50K per year. (this covered their expenses prior to my mom's accident)
Assets:
House/ranchette paid for $600K+
IRAs $2.5 million (53% US stocks, 17% INT stocks, 30% bonds)
Taxable CDs in local banks plus I-Bonds, around $500K
Combined, they have about 58% of their funds in equity.
I would like feedback on the asset allocation. I and other sibling live about 600 miles away. We are trying to get them to move closer to us. Parents say they are open to move once grandma, 96, passes. Dad doesn't want to leave his rural community, so nothing firm.
I am comparing their current allocation to Fidelity and Vanguard target funds for their ages. The target funds for their age range seems to be about 35% equity. I had planned to slowly lower their equity portion over time, basically taking the RMDs and putting them into bonds/CDs in their taxable accounts. (I had no long term asset allocation picked, I was just reluctant to make huge shifts)
Should I quickly shift more of their IRA into bonds?
thank you
Statistics: Posted by okie745 — Sat Dec 30, 2023 11:44 am — Replies 2 — Views 160