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  1. #1

    My mom is retiring and needs help.

    My mom is retiring soon and she doesn't exactly know how much she will end up with. She has stock that currently values about 108,000 and a 401k that values around 93,000. she has the option of selling her stock out right, or keeping it and drawing a dividend of about 500 every 3 months. She doesn't know how much she will actually get, because she knows that the government taxes this stuff but doesn't know the rates at which they tax it. She is 64 going on 65 soon. Any advice about how to handle this situation so she will be able to live and pay the bills and such will help. Thanks in advance.

  2. #2
    Once she has this information, download both the federal and state tax forms normally 1040's but state may have a different name. Plug in her income using last years forms but update as if she was 65. This will give an estimate of after retirement. I would only use retirement information rather than current years income before retirement plus any pension/SS for last working year. In Missouri SS and some pension funds are not taxed under a certain amount, which was $34,000+ last time I looked.

  3. #3
    For those that are working you REALLY need to start looking at what you might have as income starting at about 45. You can make adjustments to your lifestyle then but not the year before you retire.

  4. #4
    Will there be a retirement health benefit? If fortunate, sometimes there is a "creditable" drug benefit which would eliminate researching Part D drug plans.

  5. #5
    Is her mortgage paid off? Does she have any debts? Your comment about "paying the bills" made me wonder. 65 may sound old to you, but she could live another 30 years. She needs to find a way to live on her SS and pension, if any, so that she can reserve her investments for emergencies. If she could work longer and save more, that would be ideal. Another option is a part time job.

 

 

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