My parents are both going on 60 now and would like to retire.The thing is they only have their house(worth 100k) to use as a means of retirement.What would be best step to take?
119809
If they have sufficient source of income after retirement, they may keep themselves buzy in the communinity by operating  a time binding small scale tution center to educate youngers in the light of their vast experience of life. They may also rent out a portion of their house preferably to any of their children who are self defendant because this will of course creat a conception of a sound  joint family. It will be better than to live alone. They should not consider themselves as 'retired personnel' becuase the word 'retirement' is an initial stage of diseases. Pay my regards to them.\n\nWith best wishes\nM. Husen
295701
She needs to check with Social Security.  You can retire at 59 and a half, but the longer you wait, the more you receive in retirement benefits.  We all also get those statements from SS each year around our birthdays, she should save those, that'll tell her, too.
254348
unless you are planning on living in a cardboard box, or are filthy rich, you better be saving!!! minimum to set aside is 10% of your income, but that is bare bones minimum. don't count on the government of any country to help you, and if they do, it will be subsistance level only, don't expect to be warm and well fed. you have only yourselves to count on. I certainly hope your children will take care of you, but that mostly depends on how you raise them. are you raising them to believe that family is important, and that old people are to be respected and honored? are you raising them to be responsible adults and to have respect for others and themselves? even so, they could have tragedies in their own lives that prevent them from being there. and when you consider that people are living longer than ever, how do you think you are going to pay for your food, housing, medicine for all those years after retirement if you don't have some set aside? I bet if you go into a senior center or retirement home in any country, you will find plenty of people going without medicine, food, and other important things because their social security or government benefits just aren't enough. contact a financial advisor or do some research yourself and start saving and investing now.
335980
It is very hard. I am on that road too. Father is in the same boat. You have 2 basic choices, you take guardianship and to heck with their wishes and make the decisions for them. Not the nicest way to go. Or you find out who deals with the seniors in their area and you have them set up things that make life more manageable, if not perfect for them. Hire helpers, volunteer drivers and visitor. Can you get nursing aid to visit for medical checks and medication management? It a long and winding road at best, but  really all they want is as much independence and dignity as they can  muster at their ages. Here we have a commission on aging that will help you review your options, they can asses your parents and see what the underlying reasons are for missed medication (lack of money, forgetfulness, too cheap to buy it, difficulty taking it) When the send out a worker list here i know that background checks have been made and references are checked, it is still a hard match to get personalities to mesh. In reality I make the drive myself several times a week, do shopping, get meds, do heavy cleaning, fix televisions ( remotes baffle him he keeps locking the features out). Life would be far easier if he would move into a assisted living or agree to live here, but alas he has rights to stay where he is and be independent as long as he is mentally fit and not a lear danger to himself and others. You have to realize a large portion of their life was in that house, it marks their history, accomplishments and memories. You may just have to dig in and make it as safe as you can for them. Talk to  a senior center, social worker, aging speialist and know what options are there and what rights they have and what benefit they get from not moving. Its complex, do a lot of asking and research. And talk to them plainly about how much stress and worry you have about them, but listen to them too. Good luck.
552263
get a savings account with someone else (like a parent or spouse, depending on your age) and put some money in it every time you get paid. make sure that it is a savings account that requires both peoples signature to withdrawl money. this is what I did when I wanted to save money and it worked great!
445007
People often mistake home equity for wealth.  The earlier writer was correct in now you have an appreciating asset that also provides tax relief.   In addition, it is controlled rent.\n\nTake it from a landlord who has significantly raised rents recently, because the market afforded me that opportunity.\n\nNow if this is your second or rental home, that may provide a different approach.  How long could you live off of the equity?  And what would you do with that time until the money runs out?\n\nIf you are just going to stay at home and take care of the kids, I would keep the house.  Their needs (especially financial) will be greater as time goes on.  \n\nOn the other hand, if you are going to really take that time and use it to improve yourself, so you don't have to work 12 hours a day, then to me that is a worthy tradeoff.  But only if you are serious about improving your skill set or your circumstances.\n\nHope that helps.
195098
I see the appeal of every situation, here.  Living with your parents translates to very low living expenses.  Keeping your job means good income.  Buying  house builds equity for you in the future, and "locks in" your monthly housing payment...the bank won't ever raise your rent.  Finishing your degree can lead to more financially rewarding employment.  What if you could do it all?\n\nIf you kept your job and bought a house that you could just barely afford on your current income (and right now is an awesome time to buy, since there is very reasonable loan money available, still, and the housing market is down in value a bit), you could continue to live with the 'rents for the first 3-6 months while you spend your spare time painting, etc. to get your new place just right before you had to live there.  Ask anybody who has spent the first year living in HGTV wannabe chaos how much they wish they could have done that.  Make sure you get a place with 3-4 bedrooms and 2+ baths.  When your friends see your great new pad, you're going to find two of them who would love to live in a place that nice, and this is where the magic begins.  Assuming you've bought a $175,000 house (the market is wildly different in different parts of the country, so the math will be different, but you'll get the idea), you're looking at a total if maybe $1,400 for the payment with taxes and insurance.  Now, out of your pool of friends, there are going to be at least two of them who would love to (and are cool enough people) pay a mere $500 to live in this nice a house (as opposed to living in some tiny apartment).  You're now living in a $175,000 house for $400/month...kinda.\n\nRather than entering that money into the general income stream, put that $1,000/month away into a new savings account.  Even if you have to "raid" the cookie jar for those occasional end-of-the-month emergencies, you'll be socking away $10,000 a year.\n\nMeanwhile, take just one class per quarter while you keep your current job.  If you can commit to 2 years of this, here's what life looks like at the end of that time:\n\n*You own a nice house (well, actually the bank does, but you know what I mean)\n*You have $20,000 in your education fund\n*You have all the College credits you already earned, PLUS you've gotten 8 quarters' worth of those pesky History, or Math, or English requirements out of the way.\n*You're ready to take on a part-time job, and now only have to deal with your core classes for your major full-time because your housing cost is $400/month and you have reserve money to dip into.\n\nYou'll graduate ready to take that first job, and be able to live, alone, debt-free, in a nice house.
577680
In general you should look at housing costs not to exceed 30% of your pay.  This would include rent, property taxes, insurance, mortgage, and utilties.\n\nThen you need to figure out what long-term financial goals you have.  Do your want to retire?  Then find the cost and there are plenty of calculators out there to tell you how much you need to save each paycheck to reach that goal.\n\nThen do that with all your bigger purchases - like a new car every X years, major appliances like a furnance lasts 15 or 20 years, education for your children, etc.  Determine the amount and when you need it and then you'll know how much to put into accounts for these larger purchase goals.\n\nAfter that, spend it.  Just make sure you think of everything you reasonably want to do and start saving for each of those now.  You'll be surprised how small the amounts are for each major goal.  \n\nAnd enjoy what is left over...if any!
4068
You have to include the household income of the parent you're living on right now. You can also check which one of them have you as a direct dependant on their tax return. Not both of them can have you there and the government will also use that information as a decision point.
641271
The situation to me is whether or not she is able to do stuff.  If she has medical issues, does this prevent her from being able to do basic stuff?  If not, then it comes down to what you and her son are willing to put up with.  You have two possible solutions.  First is to sit down with her and lay it all out for her.  Her son has to be behind this also, because it won't do to have you saying one thing and her son saying something else.  Let her know that she will be required to do her own laundry, assist with cooking and /or dishes, she will be asked to help clean around the house.  If she cannot, or will not, assist in these matters then let her know what will happen - she will have to find a new home, she will be asked to leave, she will have to pay rent, etc...  Whatever the penalty or solution that you two come up with to deal with the situation.  Solution #2 would be if you do not wish to live like that - contact the other 2 sons and everyone have a family meeting to decide what needs to happen with 'mom.'  It may be that it is time to find a retirement home for her.  If it is too much of a physical, emotional, and financial burden for you to take on - then the entire family should get involved.  It doesn't mean you don't care for her, but you can't live your life around her entirely either.
602775
I would buy an investment property or two, then put the rest in some type of money market fund earning an average of 10% or more. The Rule of 72 states that any money invested @ 10% will double every 7 years.\n\nIf you used 100k of that 400k, on down payments on one or two investment properties to create you some month to month cash flow, and build long term equity. Then the other 300k in a fund, in seven years you'll have 600k, 14years 1.2mil, 21years 2.4mil; geez your retired good for you!!
613520
Think of relocating  as here in Canada there are more oppertunities than ever and if 'it's' possible to start 'your' own organization all the better...just need some investers....and that is the key...investers and a REAL PLAN......Since 'you' are at home have 'your' parents and such INVEST' in 'YOU'.....( after all that is where TRUST and such START....)...
467358
Robert welcome to the grey zones, your best bet would be a private insurance person that you can trust and he/she can sit down and discuss the choices in your area relevant to your finances, beware most of 'em want to sell you their's and they don't care for the rest. Besides this part d is necessary in a way, you don't get it at age 65, they will make you pay penalties later, good luck
479503
I see some interesting responses on here.  I disagree with the reverse mortgage suggestion.  Up front it sounds great to take out a mortgage and never have to worry about paying it.  Needless to say interest continues to accrue and as this person suggested it will be paid from the estate.  Many times however it requires the estate to sell the home to do so.  I would only suggest a reverse mortgage as a last resort.  \n\nThis situation is a sensitive one as many factors come into play.  Such as what is the value of his 401K, what other sources of income does he have and what other savings vehicles are available to him.  Since he is in his 60's he can withdraw from his 401K without a penalty although he is still subject to taxation on the lump sum distribution.  This is why it is important to know what other sources of income he does have and are those other sources taxable. \n\nIf he his paying a high mortgage rate there is some benefit to paying off his mortgage, but not if this severely depletes his liquid assets.  It is a complicated question and needs a full financial analysis to see if it is beneficial.  \n\nI would however avoid that reverse mortgage option in this situation.
305730
Man what a tough choice to make at your age,hell that's tough at any age! Have you thought about moving your parents to Cali with you? Maybe to an assisted living facility close to you so you can be there for them and pursue your dreams. You sound very mature and well put together for a 23 year old and I would hate to see you miss out on great opportunities and the woman you love so much,both are hard to come by. Do you have any other family that could help with you parents? I'm very close with my parents and I can see how hard of a decision this can be.\n \nGood Luck
60561
Sell and move back in with your parents.\n\nSeriously, the equity you've earned is not cash that's available to you anymore - it's debt that you've paid back.  It's not your money anymore.  You took out a loan to get a house to live in, and now you're paying back the loan.\n\nThe only way to get the money back that you've paid is to sell.  But then you'll just have to buy another house or move back in with your parents or something.  :)\n\nOr you could sell your apartments.
583948
Chapter 13 is no picnic either. They will garnish your wages and leave you pratically nothing to live on. Do you have a relative or friend that can buy the house from you for awhile until you can get back on your feet? Or perhaps even selling it outright would be better than losing it. How much equity do you have in the home? Mortgage lenders will refinance up to 65% of the home's value to bail you out of foreclosure. If that isn't enough, perhaps you have access to a retirement fund (401k, IRA, etc) and you can bring some out of pocket.