My dad and I run a successful business. He has enough money in the business checking account for him to retire, if he did something with it. It's just sitting in a checking account making no interest or anything, and not keeping up with inflation. He has no debt, mortgage or otherwise. It's hard to talk to him about shepherding his money when he makes so much that 10k in interest left on the table doesn't register.
What could be a good argument for him making some other investments? It doesn't have to be optimal, just low risk and easy to 'sell' to someone who thinks the government is going to steal everyone's 401k, and the stock market is always about to collapse, and the dollar is no longer the world's reserve currency, and we are continually on the brink of hyperinflation. It's his money, but I am going to be the one taking care of him as he ages, so I'd like him to be a bit more mindful of what his money is doing in the meantime.
It has taken me two years of arguing, with the backup of our CPA, for him to agree to set up a 401k, which we are maxing each year on the employee and employer side. The argument that won him over there was the differential between his tax bracket now (highest) and his future bracket (equal to or less than highest), and that in the meantime at least he doesn't have to pay tax on the contributions in that current year, and that he would only have to wait a few years to start drawing it anyway. Nothing about actual returns on the investment interested him. What he liked was the tax-avoiding part of it. It is all in the appropriate year vanguard target retirement fund.
Any ideas?
Submitted November 14, 2018 at 08:52AM by sakjhgasmdjaknch https://ift.tt/2FvELE6
