My parents have always been decently comfortable though I recently found out it's because they have very little dedicated towards retirement. No 401K, no IRA, etc. While they've been good savers here and there, they never realized the importance of investing for retirement. I'm hoping to help them make good decisions so that they can live well after they stop working.
They both currently work and my mother will likely be retiring in the next 2 years and my father in the next 4-5 years.
My thinking is that they're in a position where they can make some investments and hold off on touching the money immediately as my dad will continue working and they'll have savings + $2000kish potentially coming in month to month.
Assets for Retirement
- Savings around $200k
- Pension from government job = $800 - $1400 or so/month depending on how long she continues working
- Social Security (mother and father) = TBD (likely at least $1400 - $1600 total)
Debt
- Mortgage with $150k+ left to pay
- Car payment at $400/month with 4 years
Some potential options for them:
- Roth IRA into target funds to take advantage of the ability to invest more due to their lack of retirement savings
- Pay down housing debt more quickly
- They're interested in property as we live in the PNW though I'm concerned about the risk and that it's not liquid
These options still don't produce any additional income for them so I'm hoping someone more knowledgable may have thoughts. I've already recommended my mom to try to continue working to boost social security and pension, but she's climbing in age and it's something she doesn't know will be feasible.
Thank you!
Edit: It's worth also noting that I'm not currently in the position to do it now, but in 3-4 years hopefully I will be in a financial position to help supplement their retirement income. I wouldn't be where I am without them so I want to do what I can to help.
Submitted October 26, 2017 at 09:26AM by ralphwiggum13 http://ift.tt/2gLzLjo
