TOM, Bank, Pessac discussed on Financial Quarterback Josh Jalinski
And they blessed Pessac. Week to you all so do we have next time ninety one go ahead. Tom. Good morning. Third of Easter. I have some money from my dad who's living with me that I'm holding for him. And it's just sitting in a savings account. And I was wondering if there was someplace I could, but that would be a little bit more helpful rather than you know, in the Bank. Doing nothing, but also be available if he ever needed it. So he's nine one one. Okay. Now, if he was eighty one the answer would be different. And if he's seventy eight the answer would be different because there's different products for different circumstances. Okay. I if you think about this at ninety one a lot can happen. There's two ways and one's going to be counter conventional one does he need the money or not. No. Covered under his his health is all taking care of. And he's the living, you know, day to day. Everything's pretty much covered. Okay. That we have out of his name. So I'm holding it just in case of an emergency or something that comes up that we on foreseen that we needed for. But in his I wanted to just, you know, maybe it's sitting there doing nothing if there was something else that could be done with it. In the meantime, and still be available. Well, number one week. I would be conservative with the money. You could have you could have bonds that are insured. You could also look at having maybe twenty to thirty percent inequities seventy to eighty percent in fixed income or bonds, something like that. That way gives a little bit of potential. The other interesting thing is if you are not going to need the money. There is a thought to when you have an older person who doesn't need the money remaining inequities getting the step of in basis. Meaning if he's ninety one in puts the money inequities and dies at one hundred one you get ten years of tax for growth to the heirs. Now, if you gifted the money now, it's a new basis so that sort of changed that's philosophy. So I would I might do some bond ladders. To get you know, instead of getting zero percent, maybe get three percent certain bonds and four and others then equity see kind of stagger based upon what the cost of his care would be if he needed to hit that money. And let's say over the next ten years you envision him needing forty percent of that money than forty percents should be pretty conservative. If you envision him potentially needing sixty percent sixty percent should be conservative. But there are a lot of options for you. Now with a money market rates being higher. You know, we can show you different money markets. Even you know getting about up to two two two two point three percent. I've seen rates are subject to change and all that stuff. And there may be expensive issues in the funds and all that. But but generally you could put let's say year in a money market at two point three seven percent. Then you buy to your treasury. Then you buy three year on anybody four then a five and six, and we kind of make these ladders. To get the overall yield up a little more that's one potential -ality for the money that he's going to need. Money's not gonna need. You can put an equities and something like that. I I hope that helps any other questions. No. That was it. That sounds great. I couldn't I just couldn't stand sitting there in the Bank. That's doing, you know, absolutely nothing. People don't realize there are options, you could do and you could also look at treasuries you look at municipal bonds. And when I would do is have a ladder, you know, says the first year, so how much is the cost of his care. Twenty three hundred a month. This is all the money that what I'm talking about is is not touched. But the rest of it is about twenty three hundred a month. However, if he did need to go into an office. Then I, you know, I think this money I'm talking about. Now would then be unavailable. So, yeah, we'll have says so how much does he have total? Total that was it about one hundred and seventy okay, not much mean that could go pretty quick if there was an end of life issue. So that's why you want to be pretty conservative with it. That way, you know, when you're doing a bond ladder. The only risk would be like, okay. Say. You sell off. Right. If there's some spike in interest rate, you know, you might lose five or ten percent, dude. Interest rate volatility. That's why if you ladder it in hedges that risk a little bit. So no, certainly we could help you give us a call eight eight Josh the the one seventy number just changed things. Because it probably would mean you'd be about eighty percent treasuries, you know, or bonds and maybe twenty percent equities. You really wouldn't want to go too much in the stock market then with one seventy I thought I thought it was our number those are number. But no good question. Any other question before we go? Thanks for your help. I really appreciate.