|Money and Finance Because you have to save money to spend it on new paintball stuff!|
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|09-29-2016, 02:43 PM||#1 (permalink)|
Join Date: May 2008
Location: Over hill yonder'
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!
|09-29-2016, 07:01 PM||#2 (permalink)|
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.
|09-30-2016, 05:14 PM||#4 (permalink)|
Join Date: Nov 2015