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.
