Q&A: I’m the Executor of Dad’s $500K Portfolio. Should I Cash It Out?

A bond fund that lost 38% feels like proof you should have bought individual bonds instead. But individual bonds would have lost value too; you just wouldn’t get a statement telling you so. Former financial planner Joe Saul-Sehy joins Paula to answer three listener calls. The first comes from an executor deciding whether to move his late father’s $500,000 brokerage account to cash during probate (the court process of settling an estate). The second is from an investor whose bond fund lost 38% in six years, and the third is from a 401(k) plan manager of 23 years who pushes back on Joe’s take on target-date funds. In this episode, we discuss: How an executor can protect an estate’s value without market timing Why splitting the money 50/50 between stocks and cash can work, if every heir agrees Why individual bonds lose value when rates spike too, even when no statement shows it How a bond advertising 6% can still lose you money if you overpay for it When a bond fund makes more sense than individual bonds, and vice versa Why short-term bonds can drag down a long-term portfolio Whether target-date funds are a smart default or a first step to outgrow If you’re settling a parent’s estate, second-guessing your bonds, or wondering whether your 401(k) default is good enough, this episode gives you a way to weigh the tradeoffs instead of reaching for a one-size-fits-all rule. ⏱️ TIMESTAMPS Note: Timestamps may vary slightly depending on dynamic ad placements. (00:00) Why disability insurance costs so much (09:10) An executor’s $500K dilemma: stay invested or cash out? (11:41) Why Joe would move the estate to cash (15:13) The 50/50 split both hosts can live with (24:56) Her bond fund lost 38%. Now what? (27:33) Why individual bonds wouldn’t have dodged the loss (32:48) How a “6%” bond can still lose money (35:20) Why Paula bought her first bonds at 5.2% (53:54) A 401(k) plan manager defends target-date funds (1:05:40) Why so many people ignore their own money 🔗 RESOURCES MENTIONED OUTGROWING YOUR TARGET-DATE FUND? HERE’S WHICH ACCOUNT EACH NEW FUND BELONGS IN 👉 https://affordanything.com/assetlocation Free executor checklist from Stacking Benjamins 👉 https://stackingbenjamins.com/estate Buy Treasury bonds directly from the government 👉 https://www.treasurydirect.gov Share your worst investment mistake for a future episode 👉 https://affordanything.com/voicemail See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.