Hi /biz/. I didn't know this board existed until just now.
Anyway, my grandparents are well into their retirement. They currently live with two of their sons, who are ~50 years old, and both unemployed (no spouse or children of their own). They are not looking for jobs, and never will. They are entirely supported by my grandparents' savings. I guess the idea is that when my grandparents inevitably pass away, their sons will live on the savings until they do too.
The thing is, all of their savings is just in a savings account. By the time their sons are 80, the value in the account will have depreciated to 35% of its value due to inflation alone. I think the money should be invested, so at least they can have a passive source of income.
I'm worried that they will squander their savings too quickly, and I will be the only one left to support them. I'm only 23 and I should not have to manage my family's finances, but even I have a job, an emergency fund, and max out my 401k and IRA each year. What would be the best course of action for my family to take?
>I'm worried that they will squander their savings too quickly, and I will be the only one left to support them.
Not your responsibility.
>I'm only 23 and I should not have to manage my family's finances
>...but even I have a job, an emergency fund, and max out my 401k and IRA each year.
It is better to masturbate in private.
>What would be the best course of action for my family to take?
Firstly, step off the cross and stop acting like an early 20-something martyr. For better or worse these individuals are adults, and so long as their parents consent, then it is their money to do with freely as they wish.
If they ask, feel free to give out advice, but for fuck sake don't solicit. Your post reeks of arrogance, so that may be difficult. Everyone is free to make their own decisions, both bad and good. Like I said, this isn't your concern, so throwing yourself in front of a bus is merely for ego, far from respectable.
Your best course of action would be abandon your family to their own devices. Suggest ideas to them but don't be overly stubborn. Forcing people to make lifestyle changes at that age is nearly impossible, and teaching them new things is out of the question entirely. Just focus on your future, and try to limit your own downside once they come asking for money.
You should not have to suffer because of their poor choices.
> I didn't know this board existed until just now.
This board is woefully slow and monotonic, there's not much you can gain from lurking here.
One of the most difficult things about being an actual adult is recognizing lost causes. I had been in similar situations when I was around your age, so don't take what I said as meaning to greatly offend.
I had friends who made long sequences of poor decisions with money which eventually left them bankrupt and destitute. I, like you, was in a solid income and okay financial condition. At every step I tried to guide them and give advice, even taking on some small financial losses to help with their plight. It goes without saying the results.
>>1045675 was right in that most people are not going to change, unless they do it themselves. "Generosity" was a poor decision. Oh, the days of being young and liberal, and knowing better than everyone else. Had I not have arrogantly tried to "help my unfortunate friends," they likely would still be friends regardless of the fact that their financial failings would happen anyway.
>But, if they come asking me for advice, what should I tell them? Put the money from the savings account into bonds and contact a financial planner?
You tell them to go to a financial planner, nothing more. You are not their fiduciary, and you will not make any suggestions that even leave a hint or implication that you are. Everything boils down to personal responsibility.
It should be invested but it depends on how large the principal is. I wouldn't count on any inheritance. 30 years is a long time and without properly maintaining these assets, they won't last long.
The unfortunate thing is that you likely lack the experience to properly maintain this assets. If I were in your position, I would place them in a 60/40 stock and bond allocation. Hopefully your grandparents and their children know not to touch the principal.
>it will likely be entirely squandered 15 years from now and you will have to support them anyway