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.
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