Learning, Sharing, and Teaching > Investor Alley

Moms retirement

(1/5) > >>

bigredball90:
My mom is wanting to retire ASAP, but... she has very little savings maybe 30k.  Currently working as a school teacher with no debt and saving everything she can.  Good news is she has a house, and will probably be fine when she gets her inheritance.  Shes 61, 45-50k a year. 

My biggest questions would be what percentages should she be at im leaning 70/30. She has a 403b through the school, im just not sure if we should use an ira, or a roth.  Any suggestions would be great.

Zamboni:
She needs to max the 403b and fund the Roth . . . at least that's what I would do if I was her.

It won't be as big of a dent on her paycheck as she thinks on the 403b because it's pretax, so her tax will decrease, but it will be a dent. I say try the "max option" for one month and see if she can survive on what is left over.

The portfolio split is probably less important at this point than actually getting her to contribute as much as possible to savings.

uwp:
Does she have a pension? any idea on Social Security?
More info needed.

bigredball90:
No pension.  SS 768 at 62 or 1186 at 66.  She needs 2k a month right now. 
Forgot to ask earlier were moving her 403b (30K) from her old job over to vanguard is it a better idea to convert to a roth with it?  Currently can save 500 a month.

Ive been figuring out how to do my FIRE but, was a little un prepared for helping her out to!  Thanks! 

SwordGuy:

--- Quote from: bigredball90 on January 17, 2018, 01:48:32 PM ---No pension.  SS 768 at 62 or 1186 at 66.  She needs 2k a month right now. 
Forgot to ask earlier were moving her 403b (30K) from her old job over to vanguard is it a better idea to convert to a roth with it?  Currently can save 500 a month.

Ive been figuring out how to do my FIRE but, was a little un prepared for helping her out to!  Thanks!

--- End quote ---

So, at about age 71, are you going to kick in $1000 a month when she runs out of money? 

Because that's her only workable retirement plan short of cutting expenses to about $1350 to $1400 a month.  Or winning the lottery or marrying someone with money.

I'm sure someone will chime in if I'm wrong.  I sure as hell hope I am.

Navigation

[0] Message Index

[#] Next page