my dad inherited about 1 million in cash from my grandfather. his situation is as follows:

1. he has a pension providing 90k a year
2. my mom has a pension at about 14k per year

has around 30k in cc debt ranging from 14% to 20%

has a home equity loan of about 45k/mortgage of 100k on a home worth 220k

is the best bet for him to pay off the cc debt and invest the rest as the heloc and mortgage loan are tax deductible? what would you advise in this situation? thanks.

Other questions (off the top of my head):

1) Age of parents
2) Other investments
3) Other responsibilities (children in college)
4) Other income streams
5) Tolerance for risks.

What you are asking is NOT a very simple question. Actually, it may be something that you want to discuss with a attorney or CPA.

I think the OP is saying, I'm trying to help my father out of his inheritance.

Your question must be a brag if you are older than 12.

Pay off all debt incl the mortgagae. Counslt CPA for advice on how to protect/ invest the funds for benefit of spc. needs kid after your parents pass away.

pics

OP, I haven't even gotten to your question. I'm still trying to figure out how your father manages money, and I don't like it.

Retiree with over 100K in income, which means he earned a good paycheck for many years. And all he has to show for it is a 220K house, and he owes 175K?

Sounds like he has a history of overspending.

See if you can work with him to get him to manage his money.

thoughtgang said:3. special needs adult sonHave him use some of the money to pay off his debt, save some, and use the remainder to fund a special needs trust. wiki article

I understand your desire to help your father. You/your father have several issues to consider and I would encourage you to get professional advice for numerous reasons.

A CPA typically does not give investment advice or provide comprehensive financial planning. Your best bet might be to enlist the help of a CERTIFIED FINANCIAL PLANNER (CFP). You can go to www.cfp.net to find a CFP. CFP's must pass extensive couses including taxation, estate planning, investments, insurance, and more. They must also meet experience, education, ethics, and examination requirements. A CPA should be consulted for complicated tax matters. An estate planning attorney might be necessary for numerous estate planning documents if that hasn't been addressed already.

Good luck.

Feel free to PM me if you have addtional questions. Disclosure: I am CFP with 10 years in the industry. My firm does not accept investment commissions and is able to provide estate/tax planning services. CFP's can be compensated in a variety of ways including fee-only, commissions, both, fee offset, and more. The website has information about questions to ask/how to choose a financial planner. It is good to interview a couple of CFP's to determine the one with whom you would like to work.

ClaimsGuy said:Is thoughtgang the special needs son?

Seems to me that your father has an income that is 2-3x the average family income in the US.

Personally, given that both your parents are retired, I would probably pay off the debts and invest the rest with the assistance of a CPA/CFP.

My biggest issue is that at age 63, your parents seem to be living above their means and really need some assistance in budgeting to make sure that they do NOT blow through the inheritance quickly.