Hi all. I just now have power of attorney over both of my parents for health reasons (78/66 ages). Assets are: 1) ~$800k held in brokerage account in a money market fund, 2) ~$750k in Traditional 401k (for 66 year old), held in SP500 Index.
I am looking for asset allocation assistance. I am thinking of doing something like 30% SP500 index/70% some kind of treasuries, tied to expected hold periods for a reasonable guess of remaining life expectancy. They currently receive ~$3k/month in Social Security. They would need another $2-3k a month for reasonable living/lifestyle expenses. So something like Treasury Note is attractive given the reliable fixed-income situation. It feels like they are primed to take advantage of the current rate environment given their situation/expected life expectancy and lifestyle.
Complicating this is that the 77 year old is in early stages of Alzheimer's, which is making me question treasuries given the desire to hold until maturity to realize the close to risk-free benefit. I am not sure how much cost will be incurred in end-of-life care and am reticent to lock things up in a way that would require secondary market sales to achieve liquidity given the risk of loss that would be incurred here.
Anyways, any thoughts/help would be much appreciated. I know there is a strong emotional desire to not "erode" the principal amount and just live off earnings, which I am trying to respect. Any help would be much appreciated, thanks.
I am looking for asset allocation assistance. I am thinking of doing something like 30% SP500 index/70% some kind of treasuries, tied to expected hold periods for a reasonable guess of remaining life expectancy. They currently receive ~$3k/month in Social Security. They would need another $2-3k a month for reasonable living/lifestyle expenses. So something like Treasury Note is attractive given the reliable fixed-income situation. It feels like they are primed to take advantage of the current rate environment given their situation/expected life expectancy and lifestyle.
Complicating this is that the 77 year old is in early stages of Alzheimer's, which is making me question treasuries given the desire to hold until maturity to realize the close to risk-free benefit. I am not sure how much cost will be incurred in end-of-life care and am reticent to lock things up in a way that would require secondary market sales to achieve liquidity given the risk of loss that would be incurred here.
Anyways, any thoughts/help would be much appreciated. I know there is a strong emotional desire to not "erode" the principal amount and just live off earnings, which I am trying to respect. Any help would be much appreciated, thanks.
Statistics: Posted by Notor — Mon Jul 29, 2024 6:27 pm — Replies 1 — Views 284