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grovine Date: 6/22/00 11:49 AM Number: 4265
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<<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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