My Mom has about 60k in savings. The interest she gets, monthly, is ridiculous. We are planning on using this money to help take care of her in the future. She is 92 and of pretty sound mind. My brother is encouraging her to invest the money with the hopes that the investment will pay off in regards to adding to her amount. I am afraid of the risk involved and think she should leave it in savings and add to it from her checking account when she has a little to transfer. What do others think and, if the advice is to invest, what should she invest in? She is planning on seeing a financial advisor but I want her to see one with "elder care" experience.
The stock market right now is not the place to put money you can't afford to lose, plus I'd say she doesn't have enough to make a significant profit with anyway.
If you bank online anyway, the only difference is that it can take few days for the money to transfer from savings to checking vs instantly.
I’m guessing that the current savings pays less than $1 per month; a HYSA could pay $200, a CD ladder $250+.
Forget the "financial advisors". They are salespeople. Use some of her funds to visit a certified Elder Law attorney and make sure you have all her end of life paperwork in order--POA, MOLST or POLST and will.
Are you okay with that?
I don't think mom can afford that.
Standard advice is not to put money that you are going to need within 5 years in the markets.
At 92, it seems pretty likely that mom will need that money for her care within 5 years.
What would be safe to do is to create a CD ladder--CDs that are FDIC insured that mature serially. So, you buy a 3 month (or 6 month, or one year) CD for 1k each month. When the first one matures, you buy another.
www.Bogleheads.org is a great place to ask these kinds of questions.
Whis mom's POA? That is the most important thing to do right now.
Managed my mom’s care this way, absolutely feel confident in this.