harley
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'm looking for a decent but not too detailed budget form for my Mom to fill out. She's recently widowed. Due to really bad planning on their part (assuming she would die first), she's gone from a shared $95K/yr retirement income (pension + 2 SS checks) to one $15.5K/yr SS check. They have been living that way for the past 30 years - very early retirees. She's got some savings, and I'm trying to help her invest it to produce income while making sure she won't run out of money. She keeps saying she doesn't have long, and I'm trying to get her to see the cost of another bad assumption.
She's actually a decent saver. She's saved nearly $250K over those 30 years, which she has had sitting in various savings accounts. She knows absolutely nothing about investing (obviously). She had once invested $13K in a mutual fund, but she pulled it out a few years ago when it dropped down to $12K. After questioning her a little it turned out she had over the years withdrawn $80K from the fund, but she only saw a loss when it went below it's original amount.
Anyway, I'm thinking pssst - Wellesley for a chunk of the money, with some in CDs for emergency. I'm also considering annuities (she's 72, and not in the best of health). But I don't like the fees and loss of control they require.
My biggest problem is figuring out how much cash flow she'll need. I keep talking to her about a budget, and she keeps shoving notebooks at me saying she has a great budget, since she's recorded every expenditure since the beginning of time. I tell her that those are registers, not a budget. Past, not future. She just doesn't get it. And I can't translate her reports, since I don't understand what a lot of the expenditures are for.
She loves organizing and bookkeeping, so I thought if I could print out a budget form that she could fill out with monthly, yearly, and occasional expenses, we could maybe come up with a cash flow requirement. That would give us a starting point for deciding investments going forward. I've looked at some, but most are fairly complex, with a lot of line items she doesn't need. I thought y'all might have some good suggestions. Any help would be appreciated.
Harley
She's actually a decent saver. She's saved nearly $250K over those 30 years, which she has had sitting in various savings accounts. She knows absolutely nothing about investing (obviously). She had once invested $13K in a mutual fund, but she pulled it out a few years ago when it dropped down to $12K. After questioning her a little it turned out she had over the years withdrawn $80K from the fund, but she only saw a loss when it went below it's original amount.
Anyway, I'm thinking pssst - Wellesley for a chunk of the money, with some in CDs for emergency. I'm also considering annuities (she's 72, and not in the best of health). But I don't like the fees and loss of control they require.
My biggest problem is figuring out how much cash flow she'll need. I keep talking to her about a budget, and she keeps shoving notebooks at me saying she has a great budget, since she's recorded every expenditure since the beginning of time. I tell her that those are registers, not a budget. Past, not future. She just doesn't get it. And I can't translate her reports, since I don't understand what a lot of the expenditures are for.
She loves organizing and bookkeeping, so I thought if I could print out a budget form that she could fill out with monthly, yearly, and occasional expenses, we could maybe come up with a cash flow requirement. That would give us a starting point for deciding investments going forward. I've looked at some, but most are fairly complex, with a lot of line items she doesn't need. I thought y'all might have some good suggestions. Any help would be appreciated.
Harley