Parents funds..what to do?

ports9 wrote: ↑ Around 80k in a RRIF...60-40 GIC-Mutual fund. They are 82 yrs old and don't rely on the RIFF to live...the min they are required to withdraw doesn't make or break them.
To me the 40% in mutual fund seems like more risk than an 82 yr old should be taking...even though they don't need the returns...the capital drop the last week or so can attest to that.
GIC = buried in backyard or stuck in a mattress IMHO, but at least there is no risk to the capital and it will be simply drawn out over their remaining years of their lives.

Is 100% GIC the way to go here? Thanks in advance for any and all thoughts.

ProductGuy wrote: ↑ You guys are insane! At this point of their life they need to be invested strictly in bonds. They don’t have the time horizon to wait for a bounce back if there is significant volatility in the stock market.

Thalo wrote: ↑ If they don't need the money to live off of and they have the emotional tolerance for volatiliy, then they could be 100% equities. Or at least put some money aside for their minimum RRIF withdrawals (which get to be quite high in the 80s) and the rest into equities. This money's being invested for you and other beneficiaries, not them.

ports9 wrote: ↑


As an added note...lawyer has told us that putting one of the kids on the deed to the house won't be a way to avoid probate...thanks Gov't...one last cash grab at death.

tzhuge wrote: ↑ Why would you even need to avoid probate on their primary residence? Capitals gains aren’t taxed on that anyways. As I understand it, there could be on gains from time of death to the sale, but that seems reasonable.

WetCoastGuy wrote: ↑ So the investment horizon is whatever the investment horizon of the heirs. If the heirs will be taking that "inheritance asset" and cashing it in as they need to use it within in a short time frame, then the investment horizon is short and don't take the risk.

TrevorK wrote: ↑ (example: do they need to preserve capital in case they move into an old folks home that costs $4,000/mo?).

TomF62003 wrote: ↑ why is that? I thought this is workable if joint tenancy ,ie pass on to survivor(s)?

Scote64 wrote: ↑ Data point: recently looking into private old folks care homes in Victoria BC for elderly parent. So far we found just one that offers multiple levels of care in the same facility for someone who is slowly deteriorating and doesn't want to keep moving every year. It costs $10,500 per month at their initial level of low care requirement for their smallest room - and that hardly begins to cover all of the costs. Now picture the cost situation 10 years from now with a burgeoning elderly population and probably a few future years of higher inflation. Then add a bunch of medical bills for procedures and drugs and equipment not covered by provincial or private health care plan. That million dollars that looked like plenty for their future could end up evaporating in just a few years.

ports9 wrote: ↑ This was my assumption as well. We were cautioned that the CRA will make want to see some proof that one of the kids did something to "warrant" ownership. Did they help pay any of the mortgage...did they pay for some serious renovation etc...vs just placed on the deed late in the parents life to then be the sole owner of the house and be able to sell it tax free and no probate. And also warned that the time and cost of this "investigation" would generally not be worth saving the probate fee.
I've seen this be a real touchy subject on here and other forums...I don't claim to know everything about this subject, just passing along the info/advice we were told.