What to invest in for 87 yr old

[belleran]

I know the answer to my question is to "see a financial advisor" but I would also appreciate some wisdom from those who have been there done that.
Our mum is in high care with dementia and we have just sold her PPOR - a unit. We now have to invest approx $350k on her behalf. She will be leaving her estate equally between her three children and with her passing probably not too far in the distant future it is best not to have the money locked away.
Any ideas on how we can maximise the return without her losing her pension?

 

[Aaron_C]

Why not just leave it in cash so if she does pass on the money can be easily divided up?

 

[LoneWolf]

I would term deposit it with a short turn around

 

[skater]

Why did you sell the PPOR?

My MIL was in a nursing home following a stroke, & the advice given was to rent out the PPOR, as the income from it isn't taxed like any other income earned and it can help pay for the care.

 

[BayView]

I would term deposit it with a short turn around

Online account such as ING or Bankwest etc usually has better interest and money available within 24 hours.

The interest on $350k would be about $15k or so, about now.

 

[Macca]

As it is already sold I would just to put it into a pensioner type account that pays the deemed interest rates.

Any bank, building society or CU usually offers these.

http://www.humanservices.gov.au/customer/enablers/deeming

 

[LoneWolf]

Online account such as ING or Bankwest etc usually has better interest and money available within 24 hours.

The interest on $350k would be about $15k or so, about now.

Yes, that is exactly what I was referring to. I think will benefit you in this instance

 

[nhg]

Not bank shares for the dividends?

 

[Aaron_C]

Not bank shares for the dividends?

Yeah but watch the blame game if the investment tanks. Best to be 100% safe.

 

[marg4000]

When we sold mum's home after she went into a nursing home we put the money in a term deposit and some in a pensioner deeming account.

As you will be acting under a power of attorney (which carries strict legal obligations), it is best to err on the safe side.
Marg

 

[joanmc]

We are in the same situation and I just put the lot in the deeming account. My mum is 87 with dementia too, I feel for you. it is the suckiest disease.

 

[belleran]

We had been renting her PPOR for about 2 1/2 years but the rest of the family didn't want the hassle of managing the unit which I was quite happy to do. I am the only property focused one and was a little concerned with the decision to sell as the market is just starting to improve. I am not looking forward to looking back in a couple of years and seeing the capital growth we may have missed out on. If we could put the money into growth/income shares for the long term then we probably wouldn't miss out on capital growth but as all of you have pointed out the money needs to be 'safe' so it seems slow growth in a 'high' interest account is the responsible thing to do.