Hello,
I'm trying to help my mother-in-law plan for her retirement in September 2021. I feel fairly confident in what I'm doing for my retirement, but I'm not sure what would be best for her because of how different our situations are. I'll try and be as concise as possible in describing her situation.
- Age: 67, turning 68 in August 2021 and lives on her own in an apartment. No debt.
- Her monthly mandatory expenses are $2200 for all bills, food, etc.
- Current income: $4050 after taxes have been taken out
- Job: Hourly public school employee: $1400 per month.
- Ex husband's social security: $1250 per month. She will collect this until age 70 and then start collecting her own that should be about $1200 per month.
- Ex husband's Public Employee Retirement fund: $1400 per month.
- Expected Income during retirement starting September 2021: $3150 after taxes have been taken out.
- Her Public Employee Retirement fund: $500 per month for 15 years.
- Ex husband's social security: $1250 per month. She will collect this until age 70 and then start collecting her own that should be about $1200 per month.
- Ex husband's Public Employee Retirement fund: $1400 per month.
She has no retirement accounts other than her Public Employee Retirement fund. My advice to her is to start practicing living on the $3150 per month that she'll be bringing home once she retires in ten months and save the extra $900 per month for the future. Theoretically, in ten months she would have been able to save about $9000. I'm just not sure what she should do with it to help it grow so she has it available for a rainy day. One of my ideas was for her to invest it in a Roth IRA, but from what I understand she wouldn't be able to withdraw any of her earnings from it without penalty until the account has been open for 5 years. My other concern is her loss of income once her public employee retirement fund ends after 15 years.
If anyone has any advice, I would be very appreciative of it!
Thank you!
Submitted November 14, 2020 at 08:36PM by IanH14 https://ift.tt/2IsZXx7
