Laura wrapped it up with a bow:) I am just adding my 2 cents.
First, she should be able to get an estimate of her SS benefits at various retirement ages.
Have her sign up online at ssa.gov to establish her own account for easy access and up to date information. That is the first thing she should do to understand what she is working with and how much of a delta she may need to make up at different retirement ages. She should also remember to sign up for Medicare at 65.
Should be done three months prior to turning 65 - if she misses the 65 birthday deadline she will be penalized and will end up paying 10% extra for Medicare forever.
Second, she should plan to work until 70 if that is at all possible. Her SS benefit will grow at about 8% per year after her full retirement age, and since that will be her primary support, she should plan to maximize that as much as possible. Which means: if she can’t physically work until 70, her focus needs to be on having enough savings available to carry her through until then.
Also note: because she was married for more than 10 years, she should be eligible for the higher of her own or her ex’s SS benefits. In other words he does not have to be dead for her to draw under her ex's SS benefit.
Third: yes, get rid of the CC debt as soon as she has some cash available to do so. I too would let the student loans ride given that rate. If her future employer has a 401(k) or some other retirement savings plan, she should put as much as possible towards that.
Depending on the interest rate of her cc's and her credit rating - see if it makes sense for her to apply for a zero percent APR card once she is working - so she can transfer her debts and pay them off interest free within the 12 month or sometimes 15 month time frame.
Have her look into Doctorofcredit.com to find a card with a bank bonus - $250 or $300 is extra income and she still has to pay car insurance and cell phone bill, then pad it if she needs to by paying a couple of her son's bills just this once, to reach the required spending limit - usually $500 to $1000.
Also, once she's a bit settled she might switch to a credit card at her local credit union - one with a low interest rate from 9-12 percent, just to have a card that will not kill her with interest when she has extra expenses that she can't immediately pay off.
It isn't huge but my rewards card incl bonus brought me over $700 this year because I had travel expenses - but my normal cc rewards card only about $100 because I just don't spend that much.
What I am trying to say is that particularly when you are low income you need to take advantage of everything, a CU that pays 1% interest for your checking - sure I only made about $60 annually - the thing is it all adds up and that is your life going forward.
Other than that, she will need to figure out how to keep her expenses low as she adjusts to a very new lifestyle. It will be important for her to figure out how to eat healthfully and get some exercise while she’s on the road so that she can stay healthy and continue to be able to work and enjoy her life as long as possible.
Now is a good time to get detailed about the expenses and shut down or lower as much as she can, maybe even do something part time while she is waiting for the next training session. It would be beneficial to have a budget in place once she starts her new job.
Kudos to her for fighting for her Financial Freedom and taking on a new job, especially one like that. It will not be easy, it is tough enough to start a new life on your own after 30 years without envisioning yourself living under a bridge.
From one old lady to another, tell her it can be done and with a bit of good luck, persistence and at least decent health she will be just fine. Having someone in your corner for support will be enormously helpful.
My advice as someone who opted for SS at almost 66 is to go for your current goal of 67 and act as if that is final. A lot can happen in four years - so don't fret too much over how it will all turn out - simply focus on one goal at the time - which is being ready and able to take on this new job.
Working until 70 - pfft, wait and see - you can always opt to take SS at 67 and work part-time or develop your own side gig or if everything works out well work an extra year to 68 - if the company will allow you to.
I know the numbers clearly show the advantages to wait until age 70 for SS, but sometimes that just isn't realistic.
You are not totally out of options. Fix as much as you can of your financial situation now, make it your business to learn - because for you, every financial decision is crucial right now - you want to hone your skills.
Start by looking at your bank - my CU pays 2.5% for holiday club savings up to $4K and you have access any time, so I made it my emergency fund. My other CU offers a starter CD $3K @3.5% but lets you begin with $50 and build up to $3K - 12 month term.
So you know I am not putting my money in .10 interest or even a .50 interest savings account, it ain't much but I can't afford to pass up the opportunity to make an extra $200 for basically nothing.
You know the saying it doesn't matter how much you make, it matters what you do with the money you have.
Good Luck - make the most out of your opportunities and you'll be fine.
