In mid-December, I found out my dad is ill-prepared for retirement. He turns 62 in February, and he asked me if he should claim his social security benefits or wait until he turns 65. Here’s what his monthly social security income looks like:
|Claim SS benefits at||$ Received per month|
Here’s his monthly expenses:
|Fixed monthly expenses||Amount|
After paying his required monthly expenses, he has enough money left over to cover variable expenses like food, gas, clothing, and other miscellaneous costs. He also plans to work part-time so he’s not cooped up in the house all day.
I asked him about his 401k and other retirement savings. He was honest and told me it’s all gone. What happened dad? What did you spend it on? His reply: money mismanagement.
I took a moment to reflect on all the times my pops helped me out.
The biggest thing he ever did for me was help me get through college. He never hesitated to help me pay for tuition and books.
It’s funny how as a kid and later a college kid, you don’t think for a second how your parents are doing financially especially when they give you money. You just think “Dope! $50? Thanks Dad.”
Overall, my old man isn’t in a terrible position. He doesn’t have many expenses, he has a source of income, he is willing to work part time, and in addition my stepmom works and helps out as well.
I recommended he claim his benefits in February because what if you’re not around at age 65 to spend that extra $500 a month?
This whole situation reminds me to continue budgeting my money, saving for the future and for unexpected expenses, and to not be a slave to money lenders! Make your money work for you!