Sigh... Elderly Mom's Getting Terrible Investment Results

[CaptainNJ]

Originally Posted by lottamoxie

It's a complicated relationship, always has been. My mother is extremely controlling and anxious and easily overwhelmed. There is no amount of persuasion that could ever overcome her stubbornness; she would never take my advice and would listen only on things she wants to listen to. She'll listen to her sister before she'll listen to me, but on the matter of a non-revocable trust or transferring assets she's not going to budge and that's that.

my dad is similar in that he doesnt want to lose control and seems to prefer to not transfer too many assets prior to his death. at the end of the day, there is nothing you can you do about it. just try to help them fulfill their own wishes (which may just be keeping out of their financial affairs).

a lot of how i handle my financial planning is influenced by what my father has done and where i would like to do things differently.

[artillery77]

Originally Posted by lottamoxie

I know, I know, its none of my business... but...

I'm visiting my elderly mother and took a look at her investment statement up through 12/31/2016. In 3 years she only made 1.47% net growth on her investments. The investment fee is 1% (or maybe slightly more).

I'm upset because she's throwing money away.

She wants me to make a list of questions for her investment guy (who I know and have spoken to when she was first meeting with him). The thing is, I don't have questions as much as I think he/his firm should be fired ASAP. That amount of growth is unacceptable, IMO. For goodness sakes, a 3 to 5 year CD would have earned more for her over the same period of time.

Mom is convinced she must have an investment person and she doesn't trust me (even though my own portfolio of index and mutual funds has grown over 10% in that same period of time).

<deep breaths>

It's her money, it's her game, but she's given you an opening. Listen to what she's offering, not what you want to hear:

Questions for the investment manager for her to ask:

How would you describe my investment portfolio?
What is the benchmark index for this type of portfolio?
What have been the benchmark rates of return for the past year, 3 years, 5 years and 10 years?
How has my portfolio performed in the past year, 3 years, 5 years and 10 years?
How has my portfolio performed net of fees for the past yer, 3 years, 5 years and 10 years?
Could you explain the performance variance too me?
Do you feel I have wisely invested my money with you?

Let the advisor fire him/herself. Then you can worry about what the next step is. Personally, I'd want the request in writing or on a recording in case the dude starts lying. The milk is already spilled in this case unfortunately, but perhaps she only wants to be invested in short term treasuries... Let the advisor clarify what she is and the benchmarks, then both of you can make a judgement.

[leastprime]

We are 66/69. We have investment goals and income goals. Income goals is more important. We have enough in SS, small pension, GLWB deferred annuities, a rental, and trading accounts. As you can see we are more focused on Income and preservation of Income, rather than on investments. We also have more than enough Income. We are currently holding 70%-60% cash earning checkbook rates.

OP, be sure you understand the difference between Income security and Investments. Something your mom understood but you may have confused her.
GL