Non-US Investing • Investing for >70yo relatives

I think your biggest problem will be behavioural-ie your relative’s ability to cope with the more obvious risk with bonds as opposed to cash holdings
Bonds can go down-re 2022 -how will they handle this? -will you be blamed?
Starting to face the volatility and risk of investing at 70-75 is a tough one for new investors
If they are financially secure I would be wary of taking on much in the way of unnecessary risk/volatility
Having said all that a bond ladder of short term (5 years) treasury bonds would seem to be a reasonable fist “toe in the water” for this new starting phase of their investing career
xxd091

Thanks! this is helpful. I will try go ahead with that. point taken on 5 years, not 6.

Indeed, I told them about fluctuations and the idea is they will keep them until maturity, hence the ladder, so hopefully I won't be blamed but one never knows. I did warn them multiple times that the value might go up or down during the time they hold them, but if they hold to maturity then they get 100 at maturity date, and the risk in that case is a default of the Italian government, rather than price fluctuations.

Statistics: Posted by daviddem — Mon Jul 01, 2024 1:54 am — Replies 3 — Views 807