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|Subject: Retirement Advice For Momma||Date: 9/17/2008 3:44 PM|
|Author: georgez101||Number: 13975 of 19597|
My father passed away a little over a year ago and I'm trying to do a little financial research for my mom who seems to be "out to sea" with her finances right now. She keeps spending money on trips and other unnecessary things that are adding up. I feel like she needs a financial plan of action for the little bit of money she has saved up or she's just going to blow through all of it. I was hoping that someone on the boards here could be of help. Here is her current financial situation:
1. She is 67
2. She is currently still working at a beauty salon making about $500 per week.
3. She has 80,000 in an interest bearing savings account (making probably around 3%).
4. She has 40,000 in an E-trade account (currently not invested in anything...just sitting there as cash)
5. She has 32,000 in an IRA account
6. She is getting about $875 per month from Social Security.
7. Her current rent is about 1,000 per month.
I guess the question is, what are her options? I know this is not a lot of money to retire on. Should she just invest whatever money she has into some kind of safe investment option? Only problem with that is that the return on the investment probably won't be enough to sustain her for a very long time.
Another option is for her to chip in with my sister and buy a house with a mother-in-law set up. My sister has agreed to watch over her in retirement. This way my mom won't have any monthly rent to pay and can live off of her Social Security checks and whatever she has left in savings. My sister can also drive her places since my mom doesn't drive.
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