I'm looking for advice regarding my parent's financial situation. My parents worked real hard all their life but they made a really bad financial decision a few years back before the housing crisis and had to declare bankruptcy due to business not going the way they expected; they basically lost most of their savings (about 300k) because of this. Anyhow, they are now retired but have basically 15k in retirement accounts only and social security as extra income (about $900/month combined). In addition to this, they also have a mortgage owing about 120k with like 22 years to go with a monthly mortgage of roughly $1000. As a result of their situation, they have to continue to work until they basically pass away or become extremely lucky unfortunately. They have some medical expenses from time to time due to their age(dad is 70, mom is 67) but are relatively healthy and able to work; however, I think they will not be able to keep this up for long (maybe 5 to 7 years tops).
I'm able to help them financially and will do that for as long as I can but I also have a family which I need to support. They have so far refused my financial help because they don't want to be a burden and have been able to manage just fine, but like I said, in a few years things will start to change when they are unable to work.
I guess I'm asking for any advice or suggestions or if anybody has been in this situation themselves to provide some guidance. What can they do or should they do in order to stabilize their situation? I think downsizing to a condo where they don't have a mortgage is an option which will give them more peace of mind assuming they can buy it outright with no mortgage (They have about 230k in equity on their home). Any advice is greatly appreciated.
Submitted August 26, 2017 at 07:04PM by johanper77 http://ift.tt/2xnb1S6
