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Subject:  Re: Bag lady in training? Date:  10/27/2000  10:56 AM
Author:  JLC Number:  25771 of 88495

<<<Facts: Age: 57, female (will probably live to 90!)
Retirement savings: essentially nothing (less than 25,000). I have an IRA and SEP. It looks like I will NOT be able
to even add measly 2K to IRA this year.
Income: Self employed and not making much more than I must have to get from month to month.
Other assets: I do have half interest in two pieces of real estate and full interest in another, fair amount of equity
in all but not liquid.
Insurance: none--no one depending on me. I do have health insurance of course and a disability policy. Disability
cost $400/month.
Spouse: none
Debt: none other than business expenses, mortgage payments. Car paid for, extinguished credit card debt earlier
this year.>>>

$400/month for disability seems high. One of three things, either you're earning a high income and insuring all of it, or that number is health and disability combined, or you're insuring too much. You might reconsider how much disability you really need. If you don't work, you might actually spend less money than while working but then again medical costs could eat up the difference, something to think about.

You might consider selling the property. You'd owe some capital gains tax but that would free up some money to place in an IRA. You could use the rest to help pay off mortgage or invest in a non-retirement account.

Good luck,

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