Mom just retired, with no savings...

[5Miler]

My mother had to retire at 62 as she was physically unable to continue her job as a waitress which she had done since she was 18 years old. She took her SS and initially it amounted to under $500 a month. She had about $80K in assorted savings/IRA account.

Shortly after she retired, I went to visit her (me in GA and her in OH) and after I looked into her financial situation, we rented a uhaul truck and moved her into my home in GA. She lived with me until she passed with COPD complications, a total of 20 years in my home. My DGF is a saint for putting up with 18 of those years. Two women in the same house is never recommended, just ask me.

I never once considered low income housing or dumping her on a sibling. That's just unthinkable.

 

[UnrealizedPotential]

My mother had to retire at 62 as she was physically unable to continue her job as a waitress which she had done since she was 18 years old. She took her SS and initially it amounted to under $500 a month. She had about $80K in assorted savings/IRA account.

Shortly after she retired, I went to visit her (me in GA and her in OH) and after I looked into her financial situation, we rented a uhaul truck and moved her into my home in GA. She lived with me until she passed with COPD complications, a total of 20 years in my home. My DGF is a saint for putting up with 18 of those years. Two women in the same house is never recommended, just ask me.

I never once considered low income housing or dumping her on a sibling. That's just unthinkable.

Decades ago , especially before the 1900's and for quite a time after that period, that was how it was done. The children took their parents in and looked after them until they passed away. Kudos to you for being the one to do it.

 

[pb4uski]

Actually, now that I think of it, my grandmother retired on just SS. She lived in a small but neat and clean one-bedroom apartment in subsidized senior housing that was about $400/month as I recall. She was very frugal and spent her money wisely.

 

[ut2sua]

OP - The best and highest return your mother can get is only available within 1 yr of taking SS.
If she is within 1 yr of starting SS, she should stop SS, and return the money.
Her SS will then go up around 7-8% per year, so what she gets in 2 or more years will be Larger and for life.

OP, This ^^^ is probably the best option for your mother (assuming you intend to pay for all her expenses in the next 1 or more years). Unfortunately, it will involve returning some of the $ she has collected. Investing in bond/CD will yield roughly zero %, and the stock market is high and could drop (no one knows when). Delaying collecting SS should guarantee an increase that no other investment can surely deliver within the short investing period your mother has. Living in some countries (ex-US) could be another option for her given her income. A number of folks have done that successfully.

 

[CardsFan]

Another vote to look in to subsidized senior housing. We have a friend who just turned 70. Near as I can tell, SS is her only income. She got into some senior apartments a few years ago. I believe they take a percentage of income (25%?, 30%?). She seems happy.

 

[Dtail]

She earns $1400. No Debt. Has emergency fund $2000. Barely enough to live off of. I want to invest in something for about a year so that it can produce a small income like compound interest, however I know that's good for someone my age. Would it make sense for a 65 year old?

As others have mentioned, 1% return is probably the highest one can go without more risk.
You also mentioned about investing her SS and it also sounds like her expenses are close to the 1400 monthly.
Thus how would you be able to invest the 1400, if she effectively is spending most if not all of the 1400?

 

[pb4uski]

How is her health? Family longevity? If her health or family longevity is poor then paying back her benefits might not be the best play.

https://www.aarp.org/retirement/soc...swers/social-security-going-back-to-work.html

 

[cyber888]

Can your Mom work part time ? 63 is not old unless she's disabled. I know people in their 60s who work to take care of disabled elderly (like 80 year olds), cooking and house cleaning.

 

[HI Bill]

Was she married for more than 10 years? If so, she may qualify for spousal SS benefits at a higher rate.

 

[Aerides]

Your mother hasn't retired, she's quit working or been laid off. 63 with no savings is not retired. She should pursue re-employment unless physically unable. If she has military health insurance for life is there no military pension?

Either way, most grocery stores are hiring in most areas. Whole Foods pays $15 per hour. Most grocery stores have taken measures to help reduce risks to their staff. And with her age and that job your mom should be in line for a vaccine sooner than most. So even if not tomorrow, in 3 months, that should be the plan.

Otherwise, you have a roommate for the rest of her life. Which means your lifestyle will revolve around her for a very long time. I'm very sorry she put you in this position.

 

[pb4uski]

... Otherwise, you have a roommate for the rest of her life. Which means your lifestyle will revolve around her for a very long time. I'm very sorry she put you in this position.

This thread is a good reminder that one of the best gifts that we can give our children is our financial independence.

 

[Speculator]

It sounds like your mom is in a tough spot right now and fortunate to have you for support. If I were you, I would contact the local branch of the Council on Aging in your area for support. I've also included links for some other programs, too. And I would look at applying for housing assistance, as well as contacting our local Department of Workforce Services. My experience with these different resources has been very good. And don't forget, you can dial the national 211 number, too. And, for what it's worth, try not to get overwhelmed. You and your mom should be able to work things out, but take your time and understand everything will be a process. Good luck!

https://www.211.org/services/essential-needs

https://www.agingcare.com/articles/...n-access-for-their-elderly-parents-120513.htm

https://acl.gov/about-acl/administration-aging

https://www.ncoa.org/public-policy-action/federal-budget/

 

[Brat]

Your mom could live with you if need be but she may need help addressing her current situation. Many are suffering depression from the impact of the pandemic, which could be complicating her ability to cope. Try the resources above.

 

[daylatedollarshort]

There are lots of programs in our area for seniors / low income households. I'm not sure what she would qualify for living with you, but it doesn't hurt to check into all the programs available, now and if she could potentially move out. An older friend of mine just moved into a subsidized senior living center after being on a wait list for 8 years, so the time to get on waiting list is now. We live in an urban area with several senior clubs and they all have resources for help. Most counties or cities have some kind of aging department with social service workers knowledgeable about programs. One of our senior centers has a roommate match program for seniors, where they do the screening and background checks.

Other programs in our state / local area include - SNAP (food stamps), free lunches at the senior centers, free activities, discount public transportation passes, wholesale produce at the Farmer's Markets, almost free senior bus service, low income utility programs, low cost Internet, free phone service, free Uber rides for seniors, free college classes and more. The library has all sorts of free classes and event passes, plus the usual books, streaming services, ebooks, music, etc. (Some of these have been suspended during the pandemic.)

I actually sit around and think about this, what would I do if I only had SS to live on, as an interesting math problem. It would cost around $800 here to rent a room Golden Girls style, but that would be in a nice house on a bus route. (If there wasn't any subsidized housing available). But after rent one could probably live a fairly normal middle class life with all the programs available for help with just the programs and SS. It would probably mean not owning a car, but in the cities here many people don't use their cars much anyway. (One of our adult kids lives in a walkable area and has a car but was happy it started the other day from having it sit so long without needing to drive anywhere.) It is a plus your mom has free medical care. In some cities here college students get free bus passes and seniors in our state can enroll in college classes for free.

For extra income she could probably pick up a few hundred extra dollars with ideas in Reddit's beermoney forum. Some people there make over $1K a month. And maybe she could try some gig work like dog walking or pet sitting for extra money.

We've had thread on this before and one solution was to buy the parent a mobile home in an affordable area in a 55+ park. We had retired friends do this in a vacation area and it seemed to work out well for them. They had pretty low overhead. Or maybe if you don't mind her living with you, you could convert a garage or get a backyard cottage for her to live in so your each have your own space. I am not sure why so many posters here are acting like having your mom living with you is so awful. Housing is super expensive in our area and multi-generational households are pretty common. A number of homes in our area have mother-in-law units added on, either parents, adult kids or for extra income. Laws were added last year to encourage people to build more ADUs to help with the housing shortage.

 

[Amethyst]

Ahem. Children didn't look after their parents. Female children did.

And if novels from that time are to be believed, a lot of them didn't enjoy it one bit.

Decades ago , especially before the 1900's and for quite a time after that period, that was how it was done. The children took their parents in and looked after them until they passed away. Kudos to you for being the one to do it.

 

[Music Lover]

Ahem. Children didn't look after their parents. Female children did.

And if novels from that time are to be believed, a lot of them didn't enjoy it one bit.

I'm sure before the 1900's men really didn't enjoy working 12 - 14 hours a day under horrible, unsafe conditions either.

So, while maybe the novelists were technically accurate that the females tended to look after the aging parents, they neglected to provide proper context.

 

[UnrealizedPotential]

Ahem. Children didn't look after their parents. Female children did.

And if novels from that time are to be believed, a lot of them didn't enjoy it one bit.

In any case it happened, even though I am unsure of the circumstances of what exactly happened, whether the majority were female children over males who looked after their parents, it did happen, the parents did live with their children later in life. The census records say so.

 

[Bigdawg]

This thread is a good reminder that one of the best gifts that we can give our children is our financial independence.

+1.

Even more important is giving our children financial education so THEY become fiancially independent.

 

[OldShooter]

Hello, I am… trying to help my mother. ...

@Wyniia, every state AFIK has resources specifically targeted at seniors. In our state, DW was vice chair of the Board on Aging for a number of years. One of their most important activities is maintaining a call center staffed with people who job it is to help in situations like yours. It is a sort of one-stop-shop for available resources.

Your profile says you are in NC, so I looked to see what they have. I did not find quite the same thing as we have in our state, but this page looks like a good place to start: https://www.ncdhhs.gov/divisions/daas Among the links there is an "Elder Housing Locator" and a link to regional "area" agencies. I think this is the area agency for Charlotte: https://centralinaaging.org/

I suggest you contact these people for help.

 

[Amethyst]

And until recently, I thought we had mostly done away with those conditions, although now I'm no longer sure of that.

I'm sure before the 1900's men really didn't enjoy working 12 - 14 hours a day under horrible, unsafe conditions either.

.

 

[rothlev]

Her best financial move right now would be to get on the waiting lists for HUD senior housing. Check out all of the options . When I did this for my MIL the wait was in months not years. HUD housing is wonderful, they usually have activities, transportation to shopping, The rent is 30% of income. Add to that food stamps, and free government food subsidies, she will be fine. Most seniors in these complexes are very comfortable. My MIL saved so much money while living on a similar income that the complex called and told us to move the excess money out of her account. Then you can "hold" some money for her for emergencies, or whatever. Not all the complexes are equal thou, so check them out. I think once you get her in you can always move her to a better one when an opening comes up. This is not a travesty and there are many many seniors in this situation. i wouldn't worry about the interest or dividends, Just hold some money for her. And FYI, absolutely if her only income is SS, and you pay more than 1/2 of her support, claim her on your taxes, until she moves out. ( only worth $500) unless you are single, in which case Head of Household is a significant tax break. In this situation and at her age, I would not pay back the social security, unless she takes a regular full time job

 

[Nemo2]

Two women in the same house is never recommended, just ask me.

I seem to recall, (I think it was Turkish), reading of an old expression to the effect that "Eight mustaches can live together in the same house better than four breasts".

 

[daylatedollarshort]

Her best financial move right now would be to get on the waiting lists for HUD senior housing. Check out all of the options . When I did this for my MIL the wait was in months not years. HUD housing is wonderful, they usually have activities, transportation to shopping, The rent is 30% of income. Add to that food stamps, and free government food subsidies, she will be fine. Most seniors in these complexes are very comfortable. My MIL saved so much money while living on a similar income that the complex called and told us to move the excess money out of her account. Then you can "hold" some money for her for emergencies, or whatever. Not all the complexes are equal thou, so check them out. I think once you get her in you can always move her to a better one when an opening comes up. This is not a travesty and there are many many seniors in this situation. i wouldn't worry about the interest or dividends, Just hold some money for her. And FYI, absolutely if her only income is SS, and you pay more than 1/2 of her support, claim her on your taxes, until she moves out. ( only worth $500) unless you are single, in which case Head of Household is a significant tax break. In this situation and at her age, I would not pay back the social security, unless she takes a regular full time job

+1. One of our parents did have savings, but with senior housing, ongoing expenses were less than SS income each month, including extras like going out to eat and vacations.

One thing to consider is that if the OPs mom needs Medicaid assisted living eventually, she will likely have to spend down her assets before Medicaid will kick in, so charging her fair rent now and keeping some of the money in the OPs name might not be a bad idea.

 

[HawkOwl]

Ahem. Children didn't look after their parents. Female children did.

And if novels from that time are to be believed, a lot of them didn't enjoy it one bit.

If you mean provided nursing care, yes, that unfairly almost always falls to female descendants.

If you mean financial support, sharing living space, putting up with peculiarities, helping with repairs and maintenance, driving mom to appointments, and conflict resolution when tempers heat up, then both males and females can and do contribute.

 

[aja8888]

Seems like the OP is MIA.