livesoft wrote:FFNOX is a fine fund for her.
My recommendation would be for her to contribute the maximum to a retirement plan at work. What retirement plans are available at her work?
zebrafish wrote:. I would tell her to do what any good teacher would tell a student-- she needs to educate herself. Hopefully, she can understand this logic. Perhaps you could tell her that you'll help her, but only if she reads a good book on personal finance or investing. Give her a homework assignment!
protagonist wrote:Realistically, how grim are her prospects? My guess is that they are not so bad if she continues working, but the idea of any kind of early retirement is out of the question. She is rather sick of teaching, but afraid to change professions because of the lack of security and pension. That seems realistic to me.
dbr wrote:I think there are a few things to attend to:
Pension planning to get the optimum benefit based on years, salary, and age.
dbr wrote:Make sure SS benefits are understood if she qualifies in this particular employment.
dbr wrote:Is there an interest in qualifying for an administrative position with more pay? For a person dedicated to teaching, I am not sure such a thing should be wished on one's worst enemy, but that is an individual decision.
dbr wrote:Is there an possibility of a life partner appearing on the horizon?
livesoft wrote:Acquaintances of mine in this situation have done the following:
1. Inherited from siblings or parents
livesoft wrote:2. Gotten married
livesoft wrote:3. Did private tutoring
livesoft wrote:4. Moved to very low cost-of-living situation to a single-wide
livesoft wrote:6. Moved back home to live with and take care of elderly parent
livesoft wrote:Also give her the book "Why Smart People Make Big Money Mistakes ..." by Gilovich and Belsky to read.
protagonist wrote:... As frustrating as it is, I think empathy is important here if I am going to make any progress.
donall wrote:Have either of you looked into the Canadian SS system? Can she perhaps get some income from this source from her previous years of working?
Wow, this is an extraordinary case and the BH responses were great. One can only hope they helped her and can help Protagonist now.
bottlecap wrote:Is herproblem with saving or investing. If she will save, she's got options. If she doesn't want to save and invest, she will have to work until she is into old age. Not knowing her, it's impossible to be sure, but I doubt writing or speaking will earn her more than what she is doing now.
If she won't save and invest, she has no other option than to work into old age.
protagonist wrote:donall wrote:Have either of you looked into the Canadian SS system? Can she perhaps get some income from this source from her previous years of working?
She looked into it...she claims no....but that is certainly a worthwhile thing to check.
pkcrafter wrote:My first thought is your friend is a candidate for asset management. You've put her in Fidelity Four in One, which is very aggressive (~85% stock) for a 48 year old that has no idea about risk or anything else. I'm not a fan of trying to catch up by taking more risk, it can backfire, and all she will understand is you're the one that did it. You didn't mention if she actually asked for your help. Perhaps it might start sinking in after a CFP evaluates her financial status. She might take what a CFP more to heart than what you tell her, and helping her find a good advisor might be the best thing you can do for her.