My mom is 62, she has $4000.00 in savings --property worth $39.000 -- her social security will be about $600.00 a month.What can she do to insure her future?For the next 3 years she could invest $200.00 a month
Greetings, Grovine, and welcome. You wrote:<<My mom is 62, she has $4000.00 in savings --property worth $39.000 -- her social security will be about $600.00 a month.What can she do to insure her future?For the next 3 years she could invest $200.00 a month>>Unfortunately, with only $4K in savings at this point there's very little she will be able to do to "insure" her future in the next three years. All she can save based on your message would be $2,400 per year for a total of $7,200. If that along with her current $4K in savings was invested in stocks each month and those stocks earned 11% per year compounded monthly, then your mom's savings would grow to $14,118. That's hardly an amount adequate to sustain her comfortably over the rest of her life.Sad to say, but unless your parent has some other source of income for her retirement, she may be facing many more years of work and/or a very, very frugal retired life. Regards..PixyRegards..Pixy
Looks like you and your brothers/sisters will be her insurance. Hope she gets along well with at least one of her children.
grovine Date: 6/22/00 11:49 AM Number: 4265------------------------------------------------------<<My mom is 62, she has $4000.00 in savings --property worth $39.000...>>Questions for you to consider:Is that real estate with a mortgage and an equity of $39,000 or real estate owned free and clear with a value of $39,000?What are the realistic chances of appreciation of the real estate in the area in which she lives?What are the possibilities of her taking in a roomer for companionship and to help with the expenses?What is she currently earning per month?What is she currently spending each month to live and for job related expenses?How much in the way of job related expenses could be realistically eliminated if she were to retire?<<... -- her social security will be about $600.00 a month. What can she do to insure her future?For the next 3 years she could invest $200.00 a month>>Well, she is better off than some, however her choices are relatively limited and, unless she is able to live on about six hundred or so a month or has some family members who are willing to supplement her living expenses in one way or another, she has the potential of a real problem.If she can invest at least two hundred a month for the next three years, she should certainly do so, and, if she does, she should then have accumulated at least $11,200 plus whatever earnings and/or appreciation that might have accrued.After three years or so, if her health permits and she can otherwise continue to work, she might wish to continue working and continue to invest that two hundred each month as well as the six hundred she could then receive from Social Security.If she can keep it up long enough, she could eventually become relatively financially independent.Please note that, just this year, the rules have changed and that a person over 65 should be able to earn whatever he or she wishes without losing any Social Security benefits.Please do check and see what her locality permits in the way of real estate tax reductions and other benefits for the older person.Please also make certain that she signs up for both Part "A" and Part "B" of the Medicare when she signs up for Social Security.Good Luck,DHatch
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