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Author: Dano41 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Retirement, trust, and keeping money. Date: 3/8/2004 3:10 PM
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Greetings Everyone,

I am new to MF and investing, but am learning at a fast rate. I did, however, get a problem laid in my lap that I don't know where to look for the answer.

The problem is that my mother wants to retire and is asking me for help in setting up her retirement income. She has a bit over $100k in a pension plan, that will pay her $700/month for 10yrs, but since she isn't married the company is the benificary if something happens to her.
She also has a 401k worth about 14K. One other fact is that she is only 60 so this would be an early retirement.

I know that I can roll the pension plan and the 401k out to an IRA and not suffer any tax liabilities. What I am trying to figure out is how to set it up to pay her a set amount every month while still earning her a decent interest.

Another problem/idea is that she does not want to leave the money in her name but put it in my or my sisters name. She is affraid that if something happens to her, like being hospitalize, that they will take her money if she can't pay the bills. Can this be done legally, and can it be done where she can still draw out of it for living expenses?

I was thinking of a trust with part of the money in money market account, part in bonds, and part in stocks. This would give her an income from the money market account and the bonds, and allow her to grow part with the stocks and hopefully stretch out the 100k for a longer period. I don't know much about trust so I don't really know if this is a good idea or not.

Thanks in advance!
Dano
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