/biz/ - Business & Finance

If your mother is nearing retirement and this is her retirement fund, then yeah, mostly bond funds and dividend paying large cap.

>>460165
>Jewish
>one penny

>>460173
No it is not her retirement fund, because all of the workers have their own "retirement fund" sponsored by the government and the company. This is just capital she has saved up since she was young.

I think my sister and I are going to inherit it, even though she hasn't said anything about it.

>>460165
How old is she? What's her retirement date that she has in mind? Does she know what her risk tolerance is? Would she be able to swallow a 10% fall in the market? 20%? 50%? What are her goals for retirement? How much cash does she need to live on per month in retirement? Does she have any pensions? Does she plan to do part time work during retirement? Is your dad around? Does he have any money? What is your mom's financial knowledge? Why is she investing now and not 4-5 years ago?

These are just some of the questions you need to answer before even thinking about investing her money. You should really talk to a financial planner. Preferably one that is NAPFA registered and is fee-only.

>>460165
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) would probably be the best bet if this is meant to be be for extra retirement income. $325,000 would get her 29953 shares, and it has a monthly distribution. Last month is was was $0.02336/share, so she would get $699.70208 before taxes. Not a hell of a lot, but it's a start.

>>460176
Why the fuck has she saved up 325k for her whole life without investing it earlier? She's lost hundreds of thousands in stock growth/dividends.

mutual fundsssssssssssssssssssssssssssssssssssssssssssssss uu mothafucker.

>>460255
>>460297

Please don't listen to these idiots. If you want to do this right, there is a process you should follow. You can't just throw her money in the stock market and wipe your hands clean. Talk to a financial planner. You can find some that will draw up a plan for her for $2-3k depending on where you live. If you want ongoing service planners usually charge a 1% annual fee based on AUM. If you have any questions let me know.

vanguard index funds

do some research OP

>>460219
Thanks for the tips. I told her to ask a financial planner, but she is not sure how to do it.

>>460287
She invested in real estate many years ago, but she had to give up one of her apartments because of divorce. Now she only has 2 (one that we are living in and one she is renting out).
>She's lost hundreds of thousands in stock growth/dividends
Do you mean she lost the opportunity cost or literally lost thousands?

>>460335
Where do you live? I can help you find a reputable planner in your area.

From my understanding in terms of risk

bank
bonds
mutual funds
individual stocks
voodoo magic

but I could be wrong

>>460338
in Scandinavia.
>>460343
Do you have to pay tax on the mutual funds when you're going to cash out the funds?

>>460346
I mean how does it work? let's say I have 20% return on my portfolio, and I have to tax 28%. Doesn't my return reduce by a great %?

>>460346
>Do you have to pay tax on the mutual funds when you're going to cash out the funds?

I don't know, expect to pay taxes on every dollar you make in the US regardless of source unless you are really good at cheating on your taxes.

Maybe talk to some sort of financial adviser, asking the internet about this type of important thing is not usually a good idea for a variety of reasons. It's a good place to start to do research but unless you are extremely skilled in gleaning information from the internet its probably better to talk to a professional face to face.

>>460346
Ohhhhh I didn't realize you were outside the US. In that case I'm not really sure I can help you. But my original point still stands. Planning for retirement isn't just about throwing money into the stock market. It takes dialogue and a conversation about your goals and what you want in life. I'm sure you can find a reputable planner in Scandinavia.

Do you live in Norway? Isn't everyone there a literal millionaire from all that socialist oil money?

>>460362
Yeah. I am going to convince my mom to go to a financial planner, and not me.

>>460365
Yeah, I'm from Norway.
>Isn't everyone there a literal millionaire from all that socialist oil money
Only if you divide the sovereign oil fund on all of the citizens, then everyone would be oil millionaires in NOK (Norwegian currency) which is around $161k.

>>460351
Dane?

>>460335
>Do you mean she lost the opportunity cost or literally lost thousands?

If she invested these $325k in mutual funds at 8%, only fifteen years ago, she would have more than $1,000,000 now.

325,000 x (1 + 8/100)^15= 1,030,954