Question by joshua_bandy: What’s the best way to invest for my mothers retirement?
My mom is 55 and has a dismal amount of savings for retirement. She just started putting in the minimum match on her 401k ~5~ years ago at my urging. She has no savings and is living from month to month. I’m 22 and making far more than I’m spending, and paying 10% into my own 401k. I want to open a retirement account in her name to supplement her social security. What’s the best way to do it in her name, and whats the best type of account for this situation?
Also, if she averaged 50,000 a year for the past 30 years, what can she expect from social security when it comes time to retire?
Best answer:
Answer by Common Sense
This is the last place you should be asking these questions. You don’t know the qualifications or the intent of anyone that answers.
Having said that here’s my 2 cents……….
Open a ROTH IRA for her. Don’t go through a bank or insurance company. If this is her only “investments” get something from a no-load Mutual Fund company that will allocate the investments based on her age and retirement date. Call Vanguard, Fidelity, T.Rowe Price (and some others) for the best ideas.
These funds will “fluctuate” but history has shown us that the proper asset allocation will give her the best return.
Good luck. Read a couple of books on retirement investing. Be very cautious of web sites and email addresses given in response to your question.
BTW: kittyrogers’s answer is pretty good………
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