‘I want to start helping my MIL manage her finances after the death of my FIL. How can I ensure she is set up for the rest of her life?’

Hi Money Minder,

Hey there! So, my father in law passed away recently, and I’m stepping in to help my mother in law with her finances. She’s 51, making $19/hr, and has $150k in a regular savings account. She’s got a couple of paid off vehicles to sell too, which might bring in about $180k. Plus, she’s got her husband’s social security benefit kicking in at age 60.

Her rent is $1800/mo, but we’re hoping to find a more affordable place when her lease is up. Luckily, she’s debt-free, and her insurance costs will go down once she sells those other vehicles.

So, how can we make sure she’s set for life? Should we go for a high yield savings account, investments, or get a financial advisor involved? I don’t need a super detailed plan right now, but some guidance on where to start would be awesome. Thanks for any help!

Cheers,
Financially Savvy Sally

Response from THE MONEY MINDER:

Hello There,

I am sorry to hear about your recent loss, and it’s commendable that you want to help your mother-in-law navigate her finances during this difficult time. It’s great that she doesn’t have any debts and has a solid income source. Given her financial situation and her future needs, it’s essential to approach her finances with a realistic and practical mindset.

Firstly, it’s wise to prioritize finding a more affordable living situation for her. Lowering her rent expenses can significantly impact her overall financial health. Once that is settled, you can explore the best options for her $180k from selling the vehicles. A high yield savings account is a safe choice for a portion of the money that she may need access to in the short term. The rest could be invested in a diversified portfolio to grow over time.

Considering her age and the potential Social Security benefits, consulting with a financial advisor could be beneficial. A professional can help create a financial plan tailored to her specific needs and goals. They can also guide her on the best ways to maximize her Social Security benefits when the time comes.

In conclusion, a mix of a high yield savings account, investments, and guidance from a financial advisor can set your mother-in-law on a path to financial security for the rest of her life. Take things one step at a time and ensure decisions are made with careful consideration. All the best from THE MONEY MINDER.