Question
What can I do to prepare for my aging parents retirement? Am I in a good position to support them through retirement or is there anything else I should do?
Background
My parents are age 56 and 58. They run their own sewing business. Before business was slow, I think they made about ~$40k annually according to their tax records. However, they don’t have any retirement money saved. They’re looking towards their children to support them in retirement. Fortunately, they have a paid off home in Los Angeles where all our family is at.
I feel obligated to support them financially but I’m worried about them retiring this early because that would mean I have to support them financially for the next 30 or so years.
I went to a cheap school, paid off my debts, have my work pay for my masters, and saved constantly. My luck has positioned me with the responsibility to support my parents’ retirement because my siblings are in debt.
I have dreams and aspirations too and want to move out from my parent’s home. I would like to travel and fund my hobbies. I just don’t know how much I need since my own retirement is so far.
I’m a slightly distressed about money mainly because
- I don’t know how much my parents will need throughout their retirement
- ~20k annual? (based on property tax, car insurance, phone, electricity, water, etc)
- I’m worried about future medical costs. Is there anything I need to know about health insurance or prepare for future medical problems my parents might have?
- I don’t know how much I need for my own retirement since its pretty far away.
My parents’ financial situation is
- Age 56 and 58
- No retirement savings
- ~40k annual savings
- No debt or mortgage
I’m 25 and have two siblings. My financial situation is as follows
- $110k in 401k
- $25k in roth
- $82k in brokerage
- $15k in savings
- $91,000 annual income
- No debt, single
My 28 year old sibling financial situation is as follows
- $200,000 in debt
- $120,000 annual income
- Recently married and thinking about starting a family and getting a single family home in the near future.
My 22 year old sibling financial situation is as follows
- $21,000 in debt (might go to $60,000 since she is pursing more schooling)
- $15,000 annual income (part-time work)
- Won’t get a full-time job in perhaps 3 years from now
EDIT: There are some comments suggesting that my parents should still work because it'll be a huge burden if they retire now. Although they're physically able to continue working, I think it may come off as a bit disrespectful to talk to my parents about that. How does one go about suggesting that to their parents effectively?
Submitted October 21, 2018 at 08:44PM by retiringparents https://ift.tt/2S83iSf
