I have been recently told of “investment rules” presented to a client who is managing their parent’s investments. Both of their parents are over the age of 80. Along those lines, my husband is cleaning up a mess that his father followed just because he is over the age of 80.
First off, my client’s dilemma. They were told because their parents were over that age of 80 that they could only invest in annuities, that they had to have an annuity that paid them out at least $20,000/year so they could spend all of their money, and last but not least, they are too old for investments. None of these statements are true. I have many clients in their 80’s, and a few in their 90’s. We invest in a prudent manner with leanings toward the conservative. If, however, your family history shows life expectancy well into your 90’s or later, a client in their early 80’s may have a long term need for their investments to provide income + growth. Many Octogenarians invest with thoughts of succession and not current income needs. This leads to a whole different, possibly, more growth based investment for that person.
Second, my in-laws were told that because they were over the age of 80 they no longer had to file a tax return. Age is not one of the factors considered by the IRS as a reason not to file. My husband has had to pull together all of their tax information for the past 4 years and get them filed. You can go to www.irs.gov and check out who is exempt from filing.
We need to watch out for our parents and grandparents when it comes to their investments.

disclosures:http://www.hechteffect.net/?page_id=31