Author Topic: Helping parents with retirement  (Read 2781 times)

BlueLagoon

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Helping parents with retirement
« on: April 29, 2015, 11:42:42 PM »
I visit my parents about once or twice a year and have never really had a conversation with them regarding their finances and retirement plans.  My dad recently retired (64) and my mom will still be working for a while (56).  They both have/had blue collar jobs and don't really have anything saved for retirement. Dad's 401k is less than $50K and mom is part of a union and has a pension (although I don't know the amount/details). 

Lately, after my dad retired I started asking more questions.   They had their home paid off but decided to help out my sister and mortgaged the house (she is making monthly payments).  This was incredibly frustrating to hear since my parents have always worked hard but just never earned much money.   Basically, they will be relying on social security, minimal savings, some rental income and my mom's small pension.  How do I help them at this point?  Where do I start? 

Frankies Girl

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Re: Helping parents with retirement
« Reply #1 on: April 29, 2015, 11:50:22 PM »
First suggestion would be to ask if they even want you to help them. There are some parents out there that would be pretty upset and possibly even offended if their offspring came in and started telling them what to do or made suggestions on how to manage their money.

If your parents would appreciate your help, the next thing would be to sit down with them and go over everything they have:  assets, debts, expected social security amounts, etc. You need to get all the details to know what the next move should be.


MDM

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Re: Helping parents with retirement
« Reply #2 on: April 29, 2015, 11:53:13 PM »
...and has a pension (although I don't know the amount/details). 
How do I help them at this point?  Where do I start?
Pretty much identical to what FG just posted, but as long as it was already written.... :)

As the light bulb joke goes, "[your parents] have to want to change."  The very first step is getting your parents' agreement to share all their financial details with you.  They may or may not want to do so - and if not, that is certainly their prerogative.

If they are willing to share, certain things may become obvious and you can work with them.  You could also post a case study, but again you'll need the details before doing so.

Catbert

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Re: Helping parents with retirement
« Reply #3 on: April 30, 2015, 09:55:57 AM »
As others have asked, do they really want help from you?  Their biggest issue based on the limited info available is that they need to stop loaning money to your sister.  If they live in a LCOL area retirement is entirely do-able with SS, small pension and paid off house. 

mozar

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Re: Helping parents with retirement
« Reply #4 on: April 30, 2015, 08:11:16 PM »
Your parents seem set. I don't think they need your help.