I have a friend who's been out of work due to covid and not a particularly good saver (!) who called me for some advice on where to direct any future savings.
Here's his situation:
58, single
20k emergency fund
10k IRA (all in Vanguard STAR fund)
Total monthly expenses = 2k
Currently only income is unemployment (which is covering the bills for now), but anticipating finding f/t work again in the fall hopefully. He knows he's working for the rest of his life and is late to the game, but would like to take measures to at least help the situation as he grows older.
Good news is he's in a rent controlled apartment and gets cheap ACA.
My questions:
1. At 58 yrs old (turning 59 this October) is there any use investing future dollars in a Roth? Or should any/all future savings just be thrown in a taxable account?
2. Is it worth rolling over the IRA into a Roth or just leave it alone?
3. Is STAR an ok thing for him to be invested in? Seems to be about 58/42 and returns look decent enough.
Thank you!
Here's his situation:
58, single
20k emergency fund
10k IRA (all in Vanguard STAR fund)
Total monthly expenses = 2k
Currently only income is unemployment (which is covering the bills for now), but anticipating finding f/t work again in the fall hopefully. He knows he's working for the rest of his life and is late to the game, but would like to take measures to at least help the situation as he grows older.
Good news is he's in a rent controlled apartment and gets cheap ACA.
My questions:
1. At 58 yrs old (turning 59 this October) is there any use investing future dollars in a Roth? Or should any/all future savings just be thrown in a taxable account?
2. Is it worth rolling over the IRA into a Roth or just leave it alone?
3. Is STAR an ok thing for him to be invested in? Seems to be about 58/42 and returns look decent enough.
Thank you!