Hope for retirement at 63?

[Anonymous]

My parents are 63 and they have zero saved for retirement. My dad has his own small practice and doesnt have a reliable source of income. I would guess his income is approx $50K a year. My mom works for him as his office manager. She hasnt had a "real job" in at least 15 years (and hasnt paid herself a salary or SS taxes in years - to my knowledge). He has some good months and some bad ones - she claims he hasnt made a single dollar in the past month.
They have 2 cars, both of which are repeatedly in the repair shop. In fact, my mom had to walk to the office today (approx 2 miles), while my dad borrowed my neighbors car for a meeting this morning.
They own a house and my grandmother's apartment (she passed away 12 years ago and my mom hasnt gone inside since.)

My mom is not in great health and while they have insurance, if something should happen to my dad, she really has nothing and would be unlikely to find other work. I have been trying to encourage her to get together some sort of budget or talk to someone but she insists its too late and there is nothing that can be done. She claims she made many poor choices (which I agree with) and now she has no options.

Can anyone suggest who they could talk to? A financial planner? They dont really have much to plan. I am happy to have them live with us, but they currently live in another state and housing is the one thing that they have covered.

[Anonymous]

Doesn't sound like they can afford to retire.

[Anonymous]

If the properties are not mortgaged, there is rental income potential. She needs to start paying herself and into social security, right away. She'll get a portion of your dad's if anything happens to him.

[Anonymous]

They definitely need to wait till at least 65 to get Medicare before retiring, and if your dad can hang in till 72, he'll get a lot more from SS.

Reverse mortgage is also an option, albeit an expensive one. It's the only thing keeping my mother financially independent.

[Anonymous]

my grandmother's apartment (she passed away 12 years ago and my mom hasnt gone inside since.)

What? Is it rented out or has it been vacant that whole time?

[Anonymous]

I disagree with the advice that your mother should start paying into social security now. While your dad is alive she can get 50 percent of his social security payment. If he dies first she will get his entire payment. If she hasn't paid in for her entire life and just starts paying in now, 50 percent of whatever he gets is likely to be more than she could get on her own.

If you are happy to have them live with you, perhaps the best plan wen they can no longer work is to sell their real estate, invest the proceeds, and have them move in. Social security, Medicare, and whatever income they can from the proceeds of the sale of their property should be more than enough to cover their expenses if you are providing them with free housing.

[Anonymous]

I think the best shot they've got is to work until Dad gets full social security, and make sure their expenses are less than that.

[Anonymous]

Medicare pays for a lot but not everything. That's why those who don't have secondary insurance purchase Part B if they can afford it. Do they own their home outright? It sounds like you need to approach your mother about that vacant apartment. Is this DC area? If you think it's saleable, I'd get out and invest the proceeds in a SEP for each of them.

[Anonymous]

Anonymous wrote:I disagree with the advice that your mother should start paying into social security now. While your dad is alive she can get 50 percent of his social security payment. If he dies first she will get his entire payment. If she hasn't paid in for her entire life and just starts paying in now, 50 percent of whatever he gets is likely to be more than she could get on her own.

If you are happy to have them live with you, perhaps the best plan wen they can no longer work is to sell their real estate, invest the proceeds, and have them move in. Social security, Medicare, and whatever income they can from the proceeds of the sale of their property should be more than enough to cover their expenses if you are providing them with free housing.

+1
Paying SS doesn't make sense.