Parents recently divorced and I’m helping my financially illiterate mom figure out how to manage. She’s sitting on $400k in cash from a house that was liquidated. Another $200k in various blue chip or diverse funds. What would you do to set her up for success and ensure I’m not financially supporting when she likely needs to retire in 10 years?

like
Posting as :
works at
You are currently posting as works at

Have her log onto SSA.gov to ensure she has enough credits for SS. That’ll make a big difference.

like

10% bitcoin

like

Does she have anything in IRA or 401k? Is she planning to rent or buy a new house?

I would recommend maxing Roth IRA & HSA as well if eligible as IRA contributions can be pulled tax/penalty free if needed and HSA as needed for qualified med expenses or both can be left to grow. If I were in this situation I would build an excel template. Talk to her about how long she envisions working, try to project annual expenses using her current spending, determine if there will be other income streams (I would think she'd get the greater of her own or half of ex-spouse). Model a few different situations on your own then you can discuss with her and determine if any changes are needed.

Talk to a CFP with her asap

In similar position. It's been heartbreaking helping parents who divorce later in life (mine are in their late 50s).

If your city allows Airbnb, Buy her a several bedroom house or a duplex (you might need to sign onto the loan if she has no income). Airbnb out by the bedroom or the unit, and she can manage/clean. I did this for my parents and they love it. And I think this is the main situation that Airbnb is perfect for (allow elderly retirees to supplement their income). Timing should be good as by the time you qualify and buy the house and get it set up, post-covid travel plans will probably pick back up. My parents’ Airbnb’s actually went strong all throughout covid, which was a pleasant surprise.

Interesting thought. I may explore an arrangement of paying for her housing in investment property form. Maybe a duplex that the other half could be rented out on.

Related Posts

What happens to your 401K when you leave the US

like

I have 8 lions. 10+ clios. Lots of Luezers’, being on juries, good salary. But honestly? Tired of advertising and this business model we all know very well. Choose an option to reply: (A) stop complaining big crying baby (B) retire and go to Hawaii to surf (C) who cares?

likehelpfulfunny

Should I be investing my 401k contributions right now? I’m afraid that the market’s going to crash. Would it be a better option to just hold the funds uninvested in the pre tax account?

like

What kind of 401k / IRA do y’all put your money into - Roth or Traditional?

like

Slalom Seattle - How’s growth going? Any increase in benefits - 401k match or standard PTO? Heard it’s on low side.

likehelpful

Best place to invest large sum with very little risk ? Thinking of putting a large sum into my 401k as it has been growing around 12% YoY. Any suggestions ?

likefunny

25 with about $50k in 401k roth and $50k in pension. Changed jobs and nobody has given me any direction on best way to roll things over. 401k roth to my roth IRA? 401k to new 401k? Pension as lump sum or just leave it or roll into what?? Thanks for any help!!

like

Hi ladies, looking for advice on pivoting my career. Currently primary engineer for a system that supports 25k users across 200+ offices. I'm bored with IT. I'm a Jill of many trades, networking, wireless, voice, etc. I'm currently working on learning various netops tools. I like figuring out how to put pieces together but it's not much of a challenge anymore. I'm working on putting together a 5 year plan to move to 100 percent remote because my husband wants to retire and move. Advice?

like

Traditional Vs Roth 401k. Which is better and why?

like

Question regarding traditional vs Roth 401k decision. I joined a new firm and they allow for Roth 401k and Mega back door Roth contribution. I’m 26 years old with a salary of 135k + bonus and have a traditional IRA (previous 401k) and a Roth IRA that are similar worth (50k each) I’m trying to decide how I should go about my new 401k with my new firm. Should I go with traditional 401k for the tax relief and after-tax back door to my Roth IRA? Thoughts, suggestions please. TIA

like

Do you have any rules of thumb for what to do with bonuses? After taxes & 401k contributions, I’m trying to decide what to do- looking at balancing: 1)immediate gratification 2)long term wealth creation & 3)mid term savings such as expensive home projects and/or future down payments on next home. Sitting on ~$30k post tax/401k bonus and trying to decide how to allocate across 3 areas. Also deciding if it makes sense to set a standard for me and my wife(similar comp) to follow for future bonuses.

like

Has anyone used their solo 401k to purchase income property real estate? Just discovered this feature today and want to hear about experiences. And no, I don’t mean borrowing up to 50k for a primary residence purchase. Been there done that. Thanks!

like

Newbie trying to get a better understanding: is it better to max the 401K or just hit company 401K match and max Roth IRA first?

like

Is it common for partners to retire early? (let’s say before 50)

likehelpful

Opinions Wanted My Dad passed away recently and my Mom finally heard back on the value of his Deloitte pension. Around 350k. Combined with life insurance and retirement this puts my Mom in a much more comfortable position than she was expecting and mentioned she wants to use some of the money to pay down my siblings and my remaining student loan debt as she holds a lot of guilt that we had to take loans at all. Between 25-50k for each of us. Would you take the money?

like

I always contributed to a Roth 401k while at KPMG. I have recently left the firm and need help choosing whether to go traditional or Roth 401k at my new gig. Salary is at $150k. Any recs/thoughts?

like

Roughly how much in cash $$ goes towards your traditional 401k a pay check...

like

I have some spare cash lying around, how can I put it into retirement accounts? I know that I can’t write a check to 401k, and I’ve already maxed out IRA contribution for the year. Is taxable brokerage the only way to go? Really appreciate the advice here

like

Do y’all get moved around from hall to hall? I’ve been moved so many times. I have 2 more years until I can retire.

Hi everyone, any tips for resignation letters, who to meet/tell first, what to do before your last day (i.e. anything adulty like 401K or healthcare)? Any insights would be greatly appreciated!

like

Additional Posts

Is Uber at ORD okay now? Several months back when I took Uber from ORD I waited for 20 minutes because of traffic in parking lot. Trying to decide to fly to MDW or ORD

like

Looking to get a few certifications, I have worked in both IT and HR consulting and am trying to decide between ITIL, SHRM, and PMP. Any thoughts on which would be best for future, quickest to get, hardest test? I get the cert paid for and a bonus upon completion, so trying to decide which one to pursue or the order if I want multiple.

like

Leaving my gig. Have 55k in Roth 401k and 5k in traditional 401k. What should I do? Roll the 55k to my Roth IRA and then the 5k to my new employers traditional 401k?

like

Offered L4 BIE role with Amazon 121k TC in Seattle. Currently a senior consultant with about 120-125k TC in NYC. Long term goal to be a data scientist and never worked for a brand name firm. Wdyt?

like

Bout to hop on a flight EWR to ORD cuz I'm hardcore craving some deep dish pizza #consultingpointsperks

like

Currently an MBA student considering an internship offer near Santa Clarita, CA. Have always wanted to spend some time near LA area but would likely room alone and am wondering if I’d have a lonely

like

Better culture + people out of FAANG ?

likesmart

Has anyone left PA and gone into accounting in the Cannabis industry? Or a firm with cannabis clients? How is the culture and clients?

like

Does EY Amex card get you into the sky lounge? Also, can you expense global travel?

likesmart

This summer I will intern at PwC in their Actuarial Services group. How would you recommend I go about asking for a full time offer at Strategy& to do strategy consulting?

like

About to have a directors interview at Alight, but I also just got through the HR screening with KPMG. I rather work for KPMG what should I do ?

like

Is there a list somewhere that details which companies require a GMAT or GRE score for post-MBA job applicants / on campus recruiting?

like

I should probably move my money out of Bank of America. Where is your money? Local credit union? Black-owned bank? Is OneUnited Bank legit?

like

The only thing that would convince me to join a union was if I was deeply and strongly attacked in any way at work, and needed legal help bad. What about you?

like

For those of you who attended a FT MBA program, what did you do when you were not in the classroom? Besides traveling, partying, studying/homework, interviewing, etc. Were you often attending events to network, getting lunch with faculty, enjoying a hobby, something else? Thanks! *Repost*

like

I’m currently a TA Coordinator but I’m looking for my next role. I applied for a D&I role but didn’t get it which is what I really want to do. What are some other positions I can move into? I don’t want to do recruiting. I’ve been a Coordinator for over 3 years. I’m ready to move around… or should I take my talents elsewhere?

like

Hey everyone, Hope you are doing well. I am getting an internship opportunity for 3 months at RSM India. I am a B.Com fresher from Delhi University. Is it a good company to join? Please provide your honest opinion. Thanks!!

like

EWR temporarily closed due to an 8 alarm Marcal paper factory fire.

Post Photo
like

Does anyone see their target promotion date updated in RPM or is it still blank?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.