Almost retired parents: Savings account vs Investing
Hi Everyone,
Looking for some advice here. My parents (who are in their late 60's & early 70's) recently sold their rental home and after paying capital gains have about 200k sitting in their bank account. They've done a terrible job planning for retirement, so this is all the money they will have as there is no pension, RRSP's or investments to pull from. They own their current home worth approx. 500k.
One parent is still working but I predict within the next couple of years he will need to throw in the towel.
As this is all of their money I am unsure if they should put it into any sort of investments as:
A) There is always risk they could lose money and they can't afford that as well their timelines wouldn't be long term
B) I predict they will need to frequently pull from these savings to subsidize their monthly/yearly expenses, so having them tied up in investments may not be such a good idea
That being I've suggested at the very least to put the maximum into a TFSA.
Eventually I think they'll need to downsize and again use any equity from the sale of their home to live off of.
Thoughts? advice?
Thanks in advance.
Looking for some advice here. My parents (who are in their late 60's & early 70's) recently sold their rental home and after paying capital gains have about 200k sitting in their bank account. They've done a terrible job planning for retirement, so this is all the money they will have as there is no pension, RRSP's or investments to pull from. They own their current home worth approx. 500k.
One parent is still working but I predict within the next couple of years he will need to throw in the towel.
As this is all of their money I am unsure if they should put it into any sort of investments as:
A) There is always risk they could lose money and they can't afford that as well their timelines wouldn't be long term
B) I predict they will need to frequently pull from these savings to subsidize their monthly/yearly expenses, so having them tied up in investments may not be such a good idea
That being I've suggested at the very least to put the maximum into a TFSA.
Eventually I think they'll need to downsize and again use any equity from the sale of their home to live off of.
Thoughts? advice?
Thanks in advance.