Sensorei
Executive Member
And we had a huge dotcom crash in the 90s, 2008 housing crash, 40% covid crash last year etc. Have fun losing money if you're topping up your investments right now.
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Managing money for a parent - access control
- Thread starter koffiejunkie
- Start date
mugikhan
Senior Member
The S&P 500 hasn't lost money over an extended period of time. So yes I will enjoy holding my investment long term through these so-called corrections
mr_norris
Expert Member
Buying high and selling low is how I roll
mr_norris
Expert Member
A lot of people have suggested some good things. I'm unsure what the correct vehicle would be but I know for sure that an endowment policy is a bad idea. The fees aren't great.
Sensorei
Executive Member
Over LONG term. Even Bitcoin performed almost 10x better than the S&P500 over the last 10 years. Doesn't mean it's always a good time to buy.The S&P 500 hasn't lost money over an extended period of time. So yes I will enjoy holding my investment long term through these so-called corrections
Corelli
Executive Member
If you transfer to yourself, you will have to pay donations tax (about 20%) but you can also be held liable for theft (ie transferring it from her).
My parents invested with Alan Gray, it pays interest out to them monthly, same with some fixed deposits. The interest can be paid into a seperate account which she can use, but the principal remains. Just check the penalties, in case she needs to access it immediately. You may get lower interest, but incase she needs the money for hospitals.
For you to manage it, you would need her to sign a power of attorney.
Best bet. Go chat to a financial advisor (Old Mutual has some good ones), or chat to Alan Gray. You could also chat to her bank about what they offer. And then you and her must go to an attorney to create a power of attorney (safe is she is unable to, or get alzheimers etc). She can also draft her will at the same time. You musnt sign the will as witness, otherwise it would invalidate it.
Hope this help. We had to go through the same process for my mom and dad (my dad had Alzheimers).
Stanlib is good, and some shares also could be beneficial depending on her exposure.
My parents invested with Alan Gray, it pays interest out to them monthly, same with some fixed deposits. The interest can be paid into a seperate account which she can use, but the principal remains. Just check the penalties, in case she needs to access it immediately. You may get lower interest, but incase she needs the money for hospitals.
For you to manage it, you would need her to sign a power of attorney.
Best bet. Go chat to a financial advisor (Old Mutual has some good ones), or chat to Alan Gray. You could also chat to her bank about what they offer. And then you and her must go to an attorney to create a power of attorney (safe is she is unable to, or get alzheimers etc). She can also draft her will at the same time. You musnt sign the will as witness, otherwise it would invalidate it.
Hope this help. We had to go through the same process for my mom and dad (my dad had Alzheimers).
Stanlib is good, and some shares also could be beneficial depending on her exposure.
Corelli
Executive Member
Dont buy bitcoin, other than if you are willing to loose the money.
For her the best now is stability. You must remember old age homes can be expensive. We paid R16k a month for my dad when he had Alzheimers. Thats seperate from his medical bills, and other costs. We eventually arranged he share with another guy at the old age home, the monthly amount went from R16k to R9k.
Remind her also with assets its tricky when you pass away. Try to get rid of everything to the family before you pass on. My mom basically gave everything away and we helped her buy other items, which we can then easily get rid of. No family heirlooms to split up then.
For her the best now is stability. You must remember old age homes can be expensive. We paid R16k a month for my dad when he had Alzheimers. Thats seperate from his medical bills, and other costs. We eventually arranged he share with another guy at the old age home, the monthly amount went from R16k to R9k.
Remind her also with assets its tricky when you pass away. Try to get rid of everything to the family before you pass on. My mom basically gave everything away and we helped her buy other items, which we can then easily get rid of. No family heirlooms to split up then.
mugikhan
Senior Member
Time in the market beats timing the market every single time. Keep reading articles that call for these 'corrections'. All they do is create FUD.