Worried about my mothers retirement!!!?

Question

My mom is 48 and she is self imployed, but she has absolutely no plan for retirement. What can I do to help her? I've heard of CD's, but would that really do much help by the time she is planning on retiring? I don't want her to know that I am helping her out, but I need some ideas on how to get the money at least started. Help!

Answer 1

Before that you worry about investment vehicles (IRAs, CD's, Annuities, etc...) your mother needs to worry about retirement, not just you.

No investment in the world will help someone who spends foolishly and counts on others to help them.

One important thing that you can do is make sure that she has paid her taxes, which would include her Social Security income.  As long as she has paid into the system, she will be eligible to receive a government check. This is an important part of retirement for many people.

You need to talk with your mom about the situation and avoid "doing something behind her back".

Realistically your mother is 14 or more years away from retirement. She has time, if she is serious, to sock money away and get ready for retirement.

If you did want to help her out, and saving is out of the question, perhaps you could buy a property cheap right now.  You could rent it out and then when she is ready to retire you could let her live in it at no cost.  This would eliminate her cost of living and her S.S. check would go a long ways without a house note.

Tough situation but I'm sure you'll do great.

Good luck!

Answer 2

talk to her about your concerns.  There are things self employed people can do to save.  Her tax accountant should know about it?  what about an IRA or a Roth IRA?  Will she at least get social security?  She must save part of her own salary.  There is no other way.  If not, she will have to live on social security, which is pretty small-she should make sure she is paying into social security so she can get benefits.

Answer 3

You might consider having your mother open a ROTH IRA.  While you can not deduct the money you put into the account on your income tax return, all the interest is tax free.

Answer 4

Does she own a house?  Is it close to being paid off?  Can the terms be restructured so that she can retire around 58-63? Maybe she can cash out some to start an IRA or CD, does she have equity in the home?  I'd start there, feel free to ask questions, good luck