My sister is getting a divorce. She wants to take the house, which (to my knowledge) she and her soon-to-be-ex still owe over $100,000 on. She doesn't have a very good job right now (making about $13 /hr) but has an interview this upcoming week for a much better paying job (+/- $50k). She also has some spending issues, but to her credit that's something that she's working on improving. Presently she is living with our mother while the divorce is finalized, and that arrangement is working out fine for the time being.
My sister is already in tens of thousands of dollars of college and credit card debt, and has been struggling to find work in her field. She also hasn't put a single penny into retirement savings.
Personally, I think my sister should stay at home with our mother until she gets herself sorted out mentally and financially. So instead of her taking on the rest of the mortgage, I suggested that she should instead start putting away the same amount of money into a 401k. I argue that the value would grow much faster and be a better investment for her than real estate, at this point in her life. It also wouldn't come with the stress of homeownership, which contributed to her anxiety and depression. My mom argues that taking on the mortgage is 'safer' than investing in the stock market. I'll grant her that it's a safer investment, but I'm not sure it's the better investment.
What does the MMM community think about this situation?