No. of Recommendations: 0
My mother would like to do something for my brother to help with his
retirement (he's 52 and probably has nothing except social security) but she
doesn't want him to have access to the money before retirement without a
lot of hassle. I suggested a traditional IRA in a bank CD that she would
hold onto and be beneficiary of as long as she's alive. Please point out
alternatives and/or problems with this. ,/I>

First the CD. At 52 a very bad idea. You need growth. Try a balanced mutual fund or and index mutual fund.

It sounds like there maybe a spending problem with your brother. Consider a trust. It could control the money until his death. You could be the trustee (this could put a strain on your relationship and it might not be a good idea).

If you want your brother to get the benefit of an IRA the trust will not work. If your mother is going to contribute a lot more than 2,000 per year maybe an IRA with your mother holding the account so your brother can not use it and the rest in a trust.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.