A
letter to Mish Shedlock, through his blog:
My Dad, now 88 years old, sold out of everything, bonds, mutual funds and even his house a few years ago, right before the crash and has kept it all in laddered CDs. Thank-you for helping to inform our decision there, it helped preserve $150k or more.
Interest payments covered most of his expenses while he was getting 4-5%, but that isn’t happening now and, at 88, he certainly is in no position to go chasing yield elsewhere.
We have hit on what we think is a good alternative. I have seven years left on my mortgage at 6%. Better he should get it than Midland Mortgage Co. so Dad will soon be my new mortgage holder. He gets a monthly check, I get a little break on the rate (5%) and we keep the money in the family.
Can you imagine something like this happening in India? Let me count the number of reasons why not:
- An 88 year old person managing his finances independently
- Said 88 year old person also living independently
- The person loaning money at interest to his own son
Can you say ADF?
