Hi everyone! Hope you're all well, financially and etc.!
I need some advice in regards to my mom's financial situation. She turns 50 this year, but she is VERY untrusting towards the market and only has money in a credit union account and cash in a safe. She's very stubborn when it comes to her money, but I've recently become very concerned when I found out something recently: she has $80k and cashed out about $20k from a mutual fund...after it lost $200 in the first 2 months of it being open. This leaves her with $100k cash: sorry for the confusion.
Yup. That's what I'm dealing with.
She is self employed, so she usually has to pays taxes every year. I'm planning to have a sit-down with her sometime soon to go over how much she makes a year and try to come up with a game plan. I'll update soon once I find out her salary. It fluctuates every year, but last year I believe she reported $40k. The $80k figure is mostly cash she has, almost quite literally, stuffed into her mattress over the years.
Luckily though, her house is almost payed off. I believe she owes about $75k now on the mortgage. So now my mom is talking about paying off the house to not to have pay a 3% interest. But again, she's stubborn.
I'm concerned now that if she pays off the house, she will have close to nothing saved to put into an IRA or something. So my biggest question is: what kind of financial tools can I use to help my mom stay financially stable? Or is there any way to get her a comfy retirement in a reasonable time frame? She cleans houses and businesses, and I hate the thought of her having to work the rest of her life.
The goal I have in mind is trying to get her enough to retire in 15 years, but clearly not even a high-risk investment portfolio would build up enough for her to have a decent retirement. Any and all advice is more than welcome!
Also, I know I might be lacking in information. This post is mostly impulsive because I LITERALLY found out more info on her financial situation 5 minutes ago. I'm freaking out! But I will update as I go. I'm gonna try and look at her stuff tonight or tomorrow.
Thanks for you help in advance!
EDIT: Sorry for the confusion on how much my mom has. And I apologize for the misleading title, I guess I meant my mom has no money in any retirement accounts. My mistake :/
Submitted March 04, 2018 at 03:08PM by LoftiestMilk0 http://ift.tt/2I4utYO
