Can we invest some of Mom's savings to earn her a better interest rate?

Thanks akdaughter, that is a good point.

As someone who has been dealing with mother's finances for close to ten years, I agree with Igloo's advice. Much of my mother's money was in annuities, and it was a real juggling act to withdraw enough to pay her expenses while avoiding early withdrawal penalties. There were five different annuities, all with different rules. Then there were the tax issues since the accumulated interest was taxable when withdrawn. Mom's dwindling remaining funds are in savings accounts or short term CDs because as her expenses go up each time she moves to a higher level of care, I need to be able to access the money. Also, I am trying to keep it simple so that when the time comes to apply for Medicaid, there will be less work. Although I wish I could get a better return on her money, in the long run it probably won't matter because it will all be spent anyway. Keep it simple - you have enough to do with your mom's care without trying to become an investment expert, too.

Thank you all for the responses. Yes, any investment would need to be accessible as she needs it and no we would not be doing high risk at this point in time. I believe my brother's interest is simply pragmatic in that she should at least earn a few dollars, if possible. There is not so much there to be concerned with inheritance. She worked hard, it's her money for the purpose of taking care of her. And my bro and SIL are coming into town so my husband and I can go away for a few days as they understand the need for time alone and the difficulties with caregiving. They don't live nearby but we talk weekly and they are very supportive and have been the ones, since they aren't involved in the day to day, that can step back and offer suggestions - like how to get her to take her meds. It was simple but I was too close to see it. I am blessed that they truly understand and wish they were closer to help out more. The Maze and Medicaid will prob be the future - I'm hoping Mom can stay with us and just have caregivers come in periodically if it comes to that. Who knows - as it is said all dementia patients are so very different. I just hope she stays nice - she has always been delightful, giving and was an amazing cook. I ask her for her opinion when I cook but she could not possibly actually cook. I used to ask her opinion about all of life and miss being able to do that - little bits help us both. I digress. Thank you.

GreenJean - is brothers concern really about mom OR more about what he assumes will be his inheritance? Not to sound harsh, but if your moms caregiver, & mom is living with you...so your the 24/7 point-person right?? you should be using moms funds to pay for her caregiving & needs and you need to have moms $$ readily available for you to spend as needed. Not in some annuity with a end date 10/20 years from now or someother time-locked investment with fees and penalties for early withdrawls.

I'm going to go out on a limb but I'd bet that you are caregiving for free for mom & absorbing her costs of living with you into your household budget AND you have actually look at the costs of care in a facility and know that 50k, 100k, 250k can easily pffft!, be gone & spent in a year or two. That you are worried about the day that moms care increases to the level that you just cant provide what you know she eventually needs. Brother doesn't see the care needs as he's not there doing the day to day with mom. Is this more the situation??? HoneyJean, if it is, brother needs a reality check.

My take on the mice maze that is dealing with caregiving, aging parents, Medicare & Medicaid, is that if they live long enough, the caregiver will run out of steam/ability/their own health, the elder will move into a tacility & run out of $$ -unless they are generationally wealthy - and you will end up applying for Medicaid for them to pay for their NH stay. They will need to cash in & spend down to get Medicaid eligible. All that late in life financial planning must work for the spend down which basically means its no risk & easily liquid &/or Medicaid compliant. It's not a DIY project, you need a good elder law atty - personally if there real $ out there (over 300k) I'd suggest you see a NAELA certified elder law atty. Good luck!

cwillie was thinking just what I was. The time for aggressive money growth was when she was younger. With higher interest rates go higher risks or lower liquidity. cwillie's advice is spot on.

Of course you can, but remember you have a duty to make wise investments with her money so do your research. Don't lock into something that doesn't mature for years and don't go for high risk investments better suited to someone much younger. You might also want to consult with an elder care attny regarding medicaid eligibility requirements.