My Mom and Dad are about to receive approx $300k post taxes from the sale of some of their farmland. They don’t have much saved for retirement and would like to use this money to augment their social security. they have an extremely low risk tolerance. They would be very happy with anything from a 3-5% yoy return but would want to start withdrawing on that in the near future. Anyone have any suggestions or been in a similar position?

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I mean aren’t there high interest savings accounts that push 3%? You could just leave it there if you want that low of a return and high liquidity.

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Nothing as liquid as a savings account, if the rate is comfortable that’s what I would go with. We close to zero risk as it gets

Laddered CD portfolio and I-Bonds is what I did for a family member in a similar situation.

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Fidelity has 5-yr cds with 5% interest rate. Just watch out for CDs that are callable

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I would ladder that into CD’s over time (several years so some money is always maturing and you get the best return

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I would set up a meeting with a financial planner.

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Treasury, CDs, pretty much anything locked will get you at least 4% today.

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I bond are only for 10K I think.

Take 50/100K and put it in the sp500. The rest put it into a CD.

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Fidelity and Schwab offer FDIC insured CDs with better rates would recommend a CD ladder of varying lengths and you can easily get over 4% ROI.

Treasuries are another option that may be exempt from state income taxes if that impacts your family.

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Invest in QYLD, RYLD, XYLD, JEPI And/or XRMI. About 1% return monthly but price doesn’t appreciate much outside of overall market gains. My parents currently do this in retirement. Setup a Roth for each of them and slowly convert the $$ from brokerage to Roth annually
Doing this for my parents retirement currently

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So using the Roth money to distribute for tax free money - is this the strategy?

^^ was thinking the same thing

Might also look into a simple immediate or differed annuity for some portion, maybe half. Put the other half in 10 and 20 year TIPs to have some inflation protection. If needed when TIPs mature, they could buy another annuity to augment the initial annuity that will by then have taken a significant hit due to inflation. The benefit of an annuity for someone with limited savings is that you can’t live past it and you get a ‘death’ premium since the principle is lost at death. This is very conservative if you use a highly rated insurance company. The down side is that principle is gone at death and it won’t likely beat the market. But being so limited on funds and conservative this might give them the most and steadiest income in the end.

This may be a good time to meet with an hourly fee based financial planner to help devise a plan.

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