Investing for Aged Parent

Question:   Dear Cynthia: I am the legal guardian of my mom, who is an Alzheimer’s patient in a nursing home. Can I invest some of her money in the stock market to improve the earnings she gets from a bank? At the present rate, they’ll be gone in 8 years.

Answer: Attorney Mary McDonald, member of the Alzheimers Board says yes, you can providing the stock you buy is in a solid company. Jane Bryant Quinn suggests keeping 2 or 3 years worth of expenses in the bank and invest only with longer term money. When the money runs out, Medicaid will cover the bills. Are stock investments are worth the risk? If the market sags, your Mom’s funds will last less than 8 years. If it rises close to an average rate, you might pick up another year or so. If you’re trying to fatten your Mom’s assets to have something left over, the law makes this option attractive. If you succeed, you’ll get the money. If you fail, your Mom goes on Medicaid (the taxpayers) sooner.

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	Web site coordinators: Jamie Thompson Sandra McKinnon Site evaluation: Cynthia Crawford Last updated: March 09, 2005	Web site established by: Kate Akers Mark Belwood Cynthia Crawford Sandra McKinnon Diana Hammond

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