Hey pf,
So my parents have made some poor decisions/had some bad luck that has led them to this situation.
My father owns his own business and his income fluctuates. Usually he makes AT LEAST 250k gross per year. Paychecks have been consistent for the most part, usually he is paid 3k per week (he does not have taxes withheld from his paycheck I guess?) some weeks he gets much more, some weeks nothing but usually 3k per week pre tax. My mother is disabled and does not work. She just got on Medicare this year and is on SSDI. She gets roughly 1.5k per month from this.
MY PARENTS HAVE ZERO RETIREMENT SAVINGS. They have no savings whatsoever. They live paycheck to paycheck. This is somewhat due to the fact that they bought a 1 million dollar house at the peak of the housing bubble. Bubble crashed, they went upside down on their house, my mom got sick and my dads business went from him making 800k one year to under 100k. So they had to sell this terribly expensive house with 8k mortgage payments and crazy property taxes. However it took over 3 years to sell, partly due to the market and partly because the first person who bought it paid for it with stolen money. He lived in the house for 6ish months before my parents could get him the hell out. So during that time they essentially were paying for two places to live because they ended up having to pay back the money and make those payments to the bank.
Right now, my parents still owe roughly 150k on the big house that they finally sold because they had to do a short sale to finally be rid of it. They currently rent a house. They have no equity in anything. The kicker is my dad owes about 75k in back taxes to the IRS because he spends his freaking money so quickly he does not save up for taxes. He is currently on a payment plan with them.
I don’t know every aspect of my parent’s financial situation but I can lay out the basics.
Income: ~12k gross
Debt: 150k old house
75k IRS
5k Discover card
15k mom’s car
9k sister’s car
12k other sister’s car (yes this is insane. They should not be buying cars for their children they DO NOT have the money. I’ve told them this. I have 4 brothers and sisters)
Budget:
None.
I know they pay roughly 1000/month on groceries and food which is crazy.
400/month on my moms car
200/month each for my sister’s cars
Rent is 2200/month
$250 internet/cable. I’ve told them they need to cut the cord. Apparently this is my mom’s only source of entertainment.
Health insurance for the rest of my family is a mystery. I have my own through my job. Either they bought it from the marketplace and it’s $700+ per month or they don’t have health insurance.
Utilities 200/month
IRS payment 1500/month
House payment I think around 1200/month
The rest is a mystery to me... I’ve been overwhelmed about this for years. I’m afraid for their retirement. I need someone to look at this and put it into perspective. I will answer questions if needed.
Submitted October 04, 2017 at 03:34PM by F1SHYFAC3 http://ift.tt/2yZiB6f
