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Old 09-29-2016, 03:43 PM   #1 (permalink)
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Parents got divorced, money and taxes

Long story short; my parents got divorced, my mother bought a condo and payed up front (not too happy with that choice, but at least she won't have a mortgage).

Anyways, she will have a decent sum of money left over, and plans to put all of it except a couple thousand into a CD or CD's to avoid being taxed like crazy on large sum stagnant in a bank account.

I'm just curious about what a few of you think of this plan, or if you have any better alternatives.

Thanks in advance!
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Old 09-29-2016, 08:01 PM   #2 (permalink)
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OK, so, I'm no CPA or accountant or anything like that, so this isn't official sanctioned financial advice. There are a thousand little details that may alter the correct answer here, such as age, health, exactly how much money we're discussing, debts, other sources of income, other investments, personal wishes, risk tolerance, time line, and the planetary alignments. I.E., way more information than you want to post on a forum. In short, your mom needs to find a financial advisor with whom to discuss these details, provide real financial advice, and help make decisions. Preferably, this should be someone who charges a fee up front, as the "free" advisors make their profit by steering you towards investments that pay the advisor a commission.

But, I will say that putting all your money into CD's is typically too conservative, and while it's pretty safe against loss, you miss out on potential income elsewhere (opportunity cost). But who knows. She really needs to find an impartial advisor.
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Old 09-30-2016, 12:25 AM   #3 (permalink)
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I appreciate it, I'll look around for someone reputable.
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Old 09-30-2016, 06:14 PM   #4 (permalink)
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Long story short; my parents got divorced, my mother bought a condo and payed up front (not too happy with that choice, but at least she won't have a mortgage).

Anyways, she will have a decent sum of money left over, and plans to put all of it except a couple thousand into a CD or CD's to avoid being taxed like crazy on large sum stagnant in a bank account.

I'm just curious about what a few of you think of this plan, or if you have any better alternatives.

Thanks in advance!
She will be taxed on the interest earned in either case. CD's are safe, depends on whether she's looking to grow or protect.
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