[USER]

I’ve recently taken over managing my mom’s finances (age 75). She has dementia/Alzheimer’s and lives with me.

Fortunately, she’s still largely functional and in good health, but needs help remembering to eat, take medications, etc.

Anyway, I’m seeking advice on how to invest her money. There isn’t much, but I want to make the best financial decisions with what she has.

She has about $110K in a Fidelity money market account (SPAXX), $10K in a brokerage account, and $50K in an IRA (FSKAX).

I recently transferred the IRA from LPL Financial, where it had essentially no gains due to high fees and poor management over the last decade.

Her pension and Social Security cover all of her current expenses, which are fairly low since she lives with me.

Eventually, I’ll need to hire help or transition her to assisted living, but I want to keep her with me as long as possible.

I don’t know much about investing beyond low-cost index funds, which is what I put her IRA in.

However, I’m not sure if this was the best move, and I’d appreciate any advice.

Thank you!

[Rick]

Are you her only child and are you the sole beneficiary of this money once she passes?

If yes, act like a fiduciary anyways always in her best interest. If no, do the same and over document the hell out of everything including conversations you may have with her.

Unless you can clearly and definitively determine this money is truly not needed for her care, use, enjoyment, I would stick with as asset class mix appropriate for her age plus potential needs.

That is likely moderately heavy on short term safe asset classes like short term US treasuries (sometime CDs when their rates are better) and the rest in something like a balanced fund like vanguard’s Wellington and/or Wellesley funds.

If you can clearly determine these fund are for you (or heirs much much younger than your mom) then I would feel ok starting to shift money into assets classes like large cap blend (VTI) and similar.

[Sandra]

This isn’t answering your question… If she hasn’t done so already, make sure she has set up all her POAs, including healthcare and financial, while she is still considered mentally able to do so.

[Elizabeth]

Here’s my experience after having gone through caring for my mother who died of dementia:

1) set up a password manager for all of her accounts so you can manage these. All bills on autopay and all account alerts on
2) get a bunch of airtags and put them in her shoes/purse/glovebox or whatever.

3). If she doesn’t drive, go to the DMV and make it official. Lots of folks change their mind later and arguing with someone with more moderate dementia bites

3) do not rule out moving her to a new place sooner than you think. My mom really thrived with more ladies around carers around her

4) hire a placement specialist to find hidden housing options for your mom. It’s free and they know all the details..

5) get to know all of your mom’s doctors and bring the medical POA form to each of them now.

Good luck. This is a hard road you are both on

[Deborah]

Assuming you’re in the U.S., I would meet with an elder attorney sooner than later. Memory care can run $10k/mo.

I get that it’s desirable to hold off as long as possible. But you also want to be prepared if that becomes necessary.

There’s a five year look-back on financial gifts if you need Medicaid, so be careful to not transfer to you.

However, I would consider setting up a rental agreement and have her pay you rent.

Even if you only use a portion of that and set up a side account in your name for her extra spending money for later.

If you don’t take it (in a way acceptable to Medicaid) you’ll end up using that $ in her spend down paying for care before qualifying for Medicaid.

[Author]

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