Hello Mustachians,
My dad almost died last week. He totaled his car but he is fine. We talk a lot about retirement and he knows my plans. We were going to sit down and talk about his retirement plans anyway but I also want to talk to him about risk planning now.
Details:
Age 57
Salary $52k
Side hustle about $10k a year
Rent from disabled sister: about $300 a month
Monthly Expenses:
Rent: about $1200
Child Support: about $500
Food: I'm guessing $200
Transportation: takes the metro to work maybe $200 and has (had) a car note, I'm not sure what it was.
Savings $14k
Pension at 62: $1500 a month, at 65 $2000 a month
SS at 62: $1500 a month, at 65 $2000 a month
That's what I know right now. He has to buy a new car. The insurance will pay off his car note and give him some money for a new car. I think he owed about $10k and he would probably get something similar. I think it was a Honda. He also needs to move soon. His rent just went up by 350 for his tiny two bedroom.
His plan is to move to the Dominican Republic when he retires. I'm not sure when he thinks that will be. He has a 4 year old and his disabled sister lives with him. His disabled brother lives about 2 hours a way and he visits every couple of months.
Any advice? I'm going to ask him if he has access to a retirement account outside his pension and talk about term life insurance. I would say work as long as possible but his main work is exhausting and he has had a couple of kidney stones from the stress.