I've been following the fw finance forum for a while, I've really learned a lot on what I should and shouldnt be doing. My parents recently moved down to Florida, they sold their house and after closing costs, paying off mortgage etc, net profit is around $75K. My parents are super conservative and plan on putting it in a hsbc savings account to accumulate the 5.05% interest. My parents are currently renting a house for an indeterminate amount of time, it could be 3 months at the min it could be 2 years at the most. Most likely it will be around a year- 18 mos. I've tried to talk my dad into some safe mutual or index funds, etc. but he is wary of the stock market. Is there something better the money could be put in other than the savings account or cd.
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posted: Oct. 10, 2006 @ 10:17p
xpguy
Senior Member - 3K
posted: Oct. 10, 2006 @ 10:22p
eb3604 said: I've been following the fw finance forum for a while, I've really learned a lot...
You didn't learn how to search
eb3604
Senior Member
posted: Oct. 10, 2006 @ 10:37p
I have searched. All I came up is savings/cds/safe index funds ie vanguard.
Grifman
Senior Member
posted: Oct. 10, 2006 @ 10:39p
What's the purpose of the money and how much risk can they tolerate? If this is money they need for a new house, then putting it in the market is dumb - a loss would mean no house. If this is just spare cash sitting around that could be invested long term, then some sort of stock market investment would make sense. Purpose, risk and time frame of the investment are all important. Just because your father wants to put it into savings at 5% doesn't mean that it's a bad decision on his part.
eb3604 said: I've tried to talk my dad into some safe mutual or index funds, etc. but he is wary of the stock market. Is there something better the money could be put in other than the savings account or cd.
Sounds to me like you're telling him you know better what to do with his money than he does. if I were him, I'd tell you to take a flying leap.
Any particular reason that Dad should consider you qualified to tell him what to do with his money?
eb3604 said: My parents are super conservative and plan on putting it in a hsbc savings account to accumulate the 5.05% interest.Listen to your ol' man. He's smarter than you think.
Syarzhuk
New Member
posted: Oct. 11, 2006 @ 11:02a
Do/Would they have any assets other than these 75K? Are they going to have income other than Social Security?
eb3604 said: I've been following the fw finance forum for a while, I've really learned a lot on what I should and shouldnt be doing. My parents recently moved down to Florida, they sold their house and after closing costs, paying off mortgage etc, net profit is around $75K. My parents are super conservative and plan on putting it in a hsbc savings account to accumulate the 5.05% interest. My parents are currently renting a house for an indeterminate amount of time, it could be 3 months at the min it could be 2 years at the most. Most likely it will be around a year- 18 mos. I've tried to talk my dad into some safe mutual or index funds, etc. but he is wary of the stock market. Is there something better the money could be put in other than the savings account or cd.
Your parents get to decide what to do with the money, because its *their* *money*. Keep your mitts off, junior. If they want to blow it all on hats, you have no say in the matter.
jensenjp
Frivolous Member
posted: Oct. 11, 2006 @ 11:57a
Are parents retired? Will there be any income(job, pension, SS)? What is the $75k profit for?
if it is for a house in FL, park it in GMACbank.com(5.25%, quicker ACH) or Eloan.com(5.5% initate ACH only) high yield savings and buy a house soon.
if they know it will be at least XX months before they buy a house(locked in to a rental lease they can not get out of, etc.) the get a shorter term CDs for less than XX months. Perhaps a CD ladder(if you can get a rate higher than High Yield Savings and you think the HYS rate will not drop soonish.
if this $$$ is a nest egg for retirement and they will be sitting on it(get it? - nest egg -> sitting on it - heh) for a while then conservative investments(diversify) are the way to go. Some vanguard index funds, Fixed income funds, High yield savings, CD ladder, etc.
of course they can always get a profession financial advisor specializing in their situation(retirement, fixed income stream, etc)
For 1/4% on 75k, I wouldn't stick my nose in. I might mention to Dad that a couple of places have 3mo @ 6% promos if he wants to pick up an extra couple hundred $$.
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