Wow, that’s amazing. Hey Mom, you’re welcome!
I wouldn’t call it "amazing’ that a money market with a low expense ratio has a slightly under 5% yield when the federal funds rate is slightly over 5%. Many other alternative short term investments are slightly over 5% including short-term tbills and some CDs. I invested in an effective ~7.5% APY CD last week, after sign-up bonus.
In my opinion, the more “amazing” rate is major banks that are still paying ~0% APY in this environment. For example, the 2 largest banks in the United States are Chase and Bank of America. Both have a 0.01% APY for their savings accounts. Bank of America increases this a little bit from 0.01% to 0.04%, if you maintain a $10 million balance for 3 months (diamond honors tier).
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One of the reasons short-term yield is high for funds that invest in short-term Treasuries (and instruments priced off these short-term Treasuries) is because of the potential, however slight, for a US sovereign default in the event of a failure in the ongoing debt ceiling negotiation.
Not a surprise that the big banks have such a pathetic return. They don’t have to raise it, as apparently people are still leaving their money in the banks anyways. If they aren’t losing many depositors, why would they change anything?
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My bank keeps trying to roll over my CD’s at a pathetic .30%, BUT will grant 4% interest to “new deposits”. So every time I have a CD mature I have to play this game where I go into the bank to withdraw my money to take it elsewhere because “I can’t afford to leave my money here with you”. Then, they always say “OH, you’re a good customer, we can offer you that higher rate!” If this small local bank wasn’t very close by and thus very convenient, don’t know if I would stick with them!
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I may be playing that game soon with an expiring CD. (But in my case new money is 5%, renewals around 3%).
In recent years I’ve often rolled my eyes and commented about our credit union earnings: “well at least they have not yet started charging us to keep our money there”. 
Are one of your parents asking you to research, are you concerned for the non-physician parent - or is the non-physician parent expressing concerns?
A physician can transform themselves into work that may be more personally fulfilling - or a way to cut hours with other work. I have some concern about doing this so young – I am more familiar with MDs working beyond the typical 65, but many of these are specialty MDs which may find the work less of a ‘grind’.
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Tip for example family with healthy nest egg: In addition to malpractice insurance for physician, the couple should consider Umbrella Policy to protect their asses.
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It’s more of a vent than anything else. We’ve made some pretty dumb decisions over the years including the purchase of a timeshare (that my parents to this day refuse to admit that it’s a bad purchase).
My parents aren’t going to listen to me so any advice is going to go nowhere.
Dad doesn’t trust the stock market whatsoever. He likes property but he didn’t even borrow from the bank to buy them (which defeats the entire point of property).
Dad had way, way, way more sitting in cash than he currently does until my Mom had to beg him to invest some of it somewhere.
I guess I’m more involved than I have any right to be because it’s frustrating from the outside looking in.
And don’t get me wrong, they’ve done quite well but that’s because of their incomes, not because of any financial prowess.
Dad’s very, very, very risk-averse. Last year, one of our properties wasn’t filled in the first two months it was vacant and he continually reminded/huffed at my mom that it was her idea to invest in property lol.
Interesting… because everyone we know who has a time share actually loves it and uses it.
I think it’s very easy to vent about how others deal with their retirement savings, investments, etc.
It sounds like your mom is a landlord…and that’s something you couldn’t pay me enough to do. But I have friends who love it.
You say your parents are financially secure. How they got there really doesn’t matter. Good for them!!
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If their spending level is not so high that $6.4 million is safely enough to avoid running out of money as long as they live (even with very conservative low yield investments), then why should you have to worry about it?
It is the people whose parents are at risk of running out of money and becoming financially dependent on others who are the ones who need to worry about their parents’ financial habits. Or maybe those whose parents are too trusting and easily scammed, but that does not seem to describe your parents and their very conservative investing habits.
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Interesting… because everyone we know who has a time share actually loves it and uses it.
Yeah, we have it with RCI or something. They deposit their week and get weeks back.
The resorts aren’t great quality though (so many Wyndham places). It would have worked out better and cheaper when you adjust for quality to buy directly.
I don’t think it was rational to buy a timeshare when it actually ends up limiting where you can stay and the quality of resorts.
You say your parents are financially secure. How they got there really doesn’t matter. Good for them!!
Yes, but they’re throwing away money for no reason.
I think anyone with assets should consider an umbrella policy, especially once their teens start driving.
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That’s your opinion. Your parents have done well…regardless. When you have your own investable income, you can do it your way…and 
you do as well as they have.
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If they have “won the game” (i.e. accumulated enough assets to last them the rest of their lives), then they may derive value from not worrying about money and not having to invest in anything that may require maintenance (checking the markets, dealing with tenant issues of rental property, dealing with additional income tax calculations, etc.).
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How much umbrella policy coverage do you recommend? 100% of the assets?
You could probably exclude 401K/IRA assets from total.
excerpts from Do you need umbrella insurance? | Fidelity
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“Umbrella coverage should generally cover the value of the taxable assets owned, as well as that of any homes beyond the primary residence. (Again, however, one’s actual need could be higher or lower.) Assets held in employer-sponsored retirement accounts (e.g., 401(k) or 403(b) accounts) are generally protected from exposure to civil liability under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The same protection generally also applies to up to $1 million worth of assets held in individual retirement accounts (IRAs). So, in assessing your needs for umbrella coverage, in general only nonqualified assets, along with assets in excess of $1 million in IRAs, need to be considered.”
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“The price of obtaining $1 million of personal liability coverage from an umbrella policy can be relatively low, generally costing between $300 to $500 per year. And for every additional $1 million of financial protection, the incremental premium cost tends to gradually diminish.”
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Another article on the topic…
Probably the trick is to have enough to scare off lawsuits.
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As is true with all insurance, the premiums range by carrier, and probably other criteria that I know nothing of.
The quote I received from GEICO, my car insurer, was multiples of the amount I pay Chubb for umbrella.
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It’s theirs to throw away.
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