Hi there, I’m a younger fellow who has grown increasingly concerned about the financial state of his parents and also that of the nation.
I just had a lengthy discussion wherein I found out she only has one year of middle class salary in her retirement accounts. She does want to buy a house eventually, but she still has a lot of debt and also is really dumb (pardon me) about finances.
I found out she is co-signed onto my sister’s student loans which are about $130,000 and her own student loans equal about $130,000. She told me she hates the idea of credit cards, yet is somehow totally okay with pulling out paycheck loans that charge between 100%-300% interest. I advised to immediately get a credit card this weekend and consolidate any high interest debt and to consider getting my sister’s loans off since the Public Service Loan Forgiveness system is only applicable to my mom’s debts and not my sister’s and my sister is adult enough to be carrying that under her own name and not affecting my mom’s credit. I asked my mom if she is matching her employer and she isn’t, because she wants to work on debts instead. My adult brother lives with us and she pays for all of his food and his portion of rent. I live here but I pay rent (albeit a minimal amount).
I know at retirement age there is social security, but with the state of politics, I doubt that’ll be a for sure thing. She is in her very early 60s and is aiming to retire by 70, but I can’t see any possible way that is feasible for her?
What are her options? What can I advise? I don’t want to bank on the idea that I might have to take care of her when she’s old, because what if I have my own kids by then? I make a decent amount now, but I for sure don’t have a solid plan to advance my career or make money. It just feels like she’s in denial about her situation, and I feel so hopeless because I want to help them but don’t understand how?
Submitted December 15, 2017 at 12:47AM by MA93 http://ift.tt/2o9PI5N
