Ask Terry Questions Mom’s retirement money running out

Mom’s retirement money running out

By Terry Savage on July 17, 2019 | Financial Planning / Retirement

Hi Terry
I have a 92 year old mom. She gets SS but it ain’t spit. She had funds( her pension ) put into Morgan Stanley but funds running out. She gets home heath care at her home where she wants to stay. Where can I find addition funds for her . Dad was a WWII vet. Any advice would be great. SS is only $1113 a month. All her $ goes to health care.

Terry Says

Ugh — this is a truly difficult situation.  You can’t manufacture the money.  And I can’t imagine how she can keep paying property taxes and insurance for a home on this small amount.

One thing puzzles me.  You say she has a pension. Did she take a lump sum, which is now depleted?  I ask, because a true pension would keep paying her monthly as long as she lives.  How did that get handled?  I can’t think of any other benefits, aside from her Social Security, that you could find to help care for her.

I’m afraid your only choice is to sell the house and either move her into a senior facility — or move her into YOUR home and use the funds from the sale of the house to pay for the ever-increasing cost of custodial care that she is likely to require.   Note:  if the money from the sale of the house runs out, then she will likely qualify for Medicaid to pay for her living expenses — so make sure the senior facility will eventually accept Medicaid payment (so she doesn’t have to move again).

Or else, if you want to keep her there in her home, you and your siblings are going to have to ante up.  But this can’t be a safe situation with her living alone.  I hope you can encourage her to be brave and make a new start in a more appropriate setting now, while she can make new friends.

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