[Lacey]

Hi. This is for my 80 yr old grandma. I don’t know exactly how much she has but she is currently with Charles Shwab after they took over TD Ameritrade. She has I believe mostly stocks and has a financial advisor.

She is ready to move her money into anything that is easy with dividends. She has a pension and a paid off condo, she married a great man about 25 years ago, but their investments go to their own kids when they pass in a trust.

I have read so many different things about mutual funds and ETF’s. I personally have a Fidelity account and do invest in Vanguard’s ETF’s through Fidelity.

I have a pension that pays for my living expenses but just started investing in this type of investments so I don’t have a ton of knowledge. Most of the reading I have done in this group is to get to retirement.

My question is if she is already retired and set for herself, what is the best investment firm and investment planning advice y’all can give me to tell her what we all think she should do?

She will probably listen tonwhat I tell her and I will probably be the one who over sees all of this, as her children aren’t very savvy in this area.

They have all asked that when the time comes, I am the one to take over, and also be the executor of her will and trust funds.

She has alot of memory and cognitive issues, but not exactly dementia. I guess just old age.

Thanks in advance.

[Cris]

I love Charles Schwab and have my brokerage account there. It’s easy to self manage and I don’t work with any of their advisors. I’d keep her money there.

[Ed-Hoch]

You first need to have a financial power of attorney or at least linked accounts to see what she’s actually invested in and what her current asset mix is. At 80 for a conservative portfolio usually its around 40% stocks/ 60% bonds (120- age). This is taking into account her entire portfolio, not just the Schwab portion. Of course everyone’s risk tolerance is different, and if she has no plans to even spend the money, it could be 100% stocks in that particular account. The other consideration is what type of account its in. If it’s a taxable brokerage, making changes comes with a tax penalty possibility substantial if she’s held stocks for a long period. If it’s a pretax account, naturally there’s no cost basis issues.

I would definitely get access online, study the investments and allocation, set up a joint call with the advisor and grandmother, and review prior to making any changes. Yes, there are many poor advisors out there, but without knowing exactly what she’s invested in, and the advisors reason for that selection you’re really just making blind assumptions.

At her age with cognitive issues on the horizon, now is the time to get it sorted while she is capable of choosing who she wants to be in charge of her finances in the coming years. If you don’t have a great plan of funds already in your mind, keeping an advisor is probably prudent until your investment savvy is more refined.

You can check also: Is an Allianz Life ABC account a good investment?

[Stephanie]

You can stay at Schwab and ask for a new advisor if he is too risky. She does need some growth funds but should not really be in stocks unless maybe utilities. But vanguard or similar funds make more sense.

This is a lot for you to take on. Be very careful. You might have a fee only advisor review her portfolio first. This would help you when you meet with Schwab.

[Caitlyn]

People say a lot of things before the money hits. They get greedy. She needs a will. Otherwise there will be fights and bad feelings after she’s gone.

[René]

I am a licensed Financial Planner, and I don’t think it is a good idea for you to take on this responsibility. Is this something you want to do?

I think her grown kids need to be involved.

[Eric]

My dad who is also retired and myself both used td ameritrade for many years and purchased the same funds this group recommends at the same expense ratio. Both of us got rolled to Charles Schwab this year as well and our funds seamlessly transferred. We are self managed as we gently fired our financial advisor years ago.

There’s nothing wrong with Schwab. The only question would be what funds she is in and what her advisor is charging. My dad and myself do vtsax.

My dad had some bond funds and few years in a money market all inside his Schwab account. We take his mandatory withdrawal once a year when he wants to take it out.

Also, check out: Safe investment options for $1 million to generate income?

[Michelle]

Has she worked with an estate planner? That’s the first thing I’d do. Make sure you have the thing in place so someone else can make decisions for her in the event that she’s no longer fit enough to make them herself.

So why is it she wants to leave Schwab and her advisor? Honestly, unless there’s a strong reason to at this point, assuming they’re a fee only CFP, I’m not sure I’d make changes now.

If she does want to leave, she can just delink her account and keep it at Schwab, no need to move anywhere else.

[Frank]

Well, don’t get fixated on dividends. That just means taxes.

The simplest solution that would get better results than most advisors would be to go to Vanguard and buy the Wellington and/or Wellesley funds and then just leave them alone and/or spend the income. Here is a write-up on that.

This would not require any further management.

[Glenna]

I managed my dad’s account when he was in his mid 80’s until he died at 90. At 71 and single I am happy to use a CFP/CPA to help me manage my funds and make thoughtful spending and investing decisions. My daughters always depended on me for financial advice but I don’t want to burden them with that responsibility. Especially if you don’t have the skill set.

It is a big responsibility.

I helped us all find good CFP’s!

Explore these too: Best investment for immediate returns at age 65?

[Glenna]

FYI – you can get Vanguard funds from Schwab. I have used Schwab for years altho 2 years ago I hired a financial advisor who used TD Ameritrade.

I was happy when they switched over to Schwab. I certainly like the interface better than Vanguard.

I use Schwab for my IRA funds, my regular brokerage account, my checking and a high yield savings.

[Lori]

Consult with and eventually secure an elder law attorney.

[Stephanie]

Dividends aren’t all they’re cracked up to be. A dividend pays out from the stock and then the price of that stock just goes down by how much the dividend paid out was. It’s often not seen because of just normal market fluctuations.

The other part of dividends that kind of sucks is that it’s forced income which screws up taxes too. Versus just taking how much of the initial stock you want out and paying the capital gains from it.

Have you seen: Seeking advice on rural/farm land investment. New to this. Any tips?

[Jason]

Sounds like a fight is coming no matter what you do. I’d try to get a new advisor and a simpler plan. Maybe some estate planning help for her.

Make sure she’s taken care of through her days.. then what SHE wants to happen with her funds after that. From the scenario.. sounds like you’re going to be the ‘bad guy’ no matter what.

[Author]

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