"Q: I have been investing for decades, and I now want to transition into a safe, non-volatile, income producing account without penalties or capital gains. What are my options? A: Who wouldn't want a consistent return without risk or capital gains taxes? Sadly, this doesn't exist. If you seek safety, consider a money market fund, a CD, or treasury bills. Once the Fed starts to cut interest rates, which could be any day, rates on these investments will start to drop."
"A: It's smart to think about this today. Find a qualified estate attorney, who can walk you through the process and will present you with a variety of options for assisting your daughter in the future. In the process, you will likely have to identify someone (or an institution) who can assist her with money management in the future. Once the plan is intact, discuss it with her so she understands the basics."
No investment provides a consistent return with zero risk and no capital gains taxes. Safer, low-volatility options include money market funds, certificates of deposit (CDs), and Treasury bills, but yields on those will fall when the Federal Reserve cuts rates. For a potential heir who may inherit significant assets, engage a qualified estate attorney to design appropriate vehicles, select a trusted individual or institution for future money management, and explain the plan to the heir. After a large home sale, keep proceeds in FDIC-insured accounts and spread deposits so each stays within the $250,000 insurance limit per ownership category.
Read at www.mercurynews.com
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