What should I do with 50k for my parents?

I presume you have no experience in investing, judging from the question you asked?

If that's the case, it is wiser to go for risk free option - top up CPF, it provides up to 4% pa with literally no risk at all. You won't want to bet your retirement fund with more risk than you can stomach.

Hi anon,

I'd suggest that you look at ensuring that your parents have sufficient balance in their RA to ensure a decent payout from CPF LIFE. At the very least, having the FRS at a minimum would ensure that they would have some form of basic, lifetime income. Topping up their RA from 2021 will also be matched (up to certain limits) by the government as announced this year in the budget so there's really no reason not to at least top up a little.

However if they are already at FRS, then they may want to see if they want to consider ERS. If not, a single private annuity plan with a payout starting in their later years (e.g. age 70) to hedge inflation can be considered as well.

Passive investing (or investing in general, really) has risks and more importantly, volatility. If you choose to do that, can your parents stomach the rise and fall of the portfolio? They need to consider that as well.

Also, do consider looking at their retirement as a whole, rather than 'in silo', so that you can cover as many aspects of retirement as possible.

Good luck!