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Wednesday, October 19, 2011

Mom’s Ongoing Financial Dilemma

My mother is a widow. In addition to her loneliness, she is feeling a bit lost financially. My parents never had much money. As a result, mom doesn’t have much except her house.

Mom wants to sell her house and move closer to her children. Unfortunately, no one wants to buy it at anywhere near the modest listing price. She needs the money from the home sale in order to remain financially independent.

Given the current economic environment, things are unlikely to be resolved to anybody’s satisfaction. Steps to address the problem might have been taken before potential became reality. Now, we’re stuck with limited options and partial solutions.

Here’s what you can do to produce a more satisfactory result. First, know that you absolutely must save money. It may negatively impact your current lifestyle, but it will help your future standard of living. Next, invest wisely. Seek the help of trusted advisors. A well-diversified and allocated portfolio – no matter how small – will serve you well.

Finally, plan for the difficult times. You know they will come. Think about your insurance portfolio in terms of how well you have covered your personal financial risks. Consult a trusted advisor in this area, too.

The more you do ahead of time, the more likely the future will be a bit less frustrating. It may not be much fun to save and plan for the future, but it’s mandatory if you want to avoid the kind of financial distress impacting mom.


Blog posting provided by:

Michael Snowdon, CFP ®

Michael is president of WealthRidge, a wealth management and financial planning firm, and is a professor emeritus of the College of Financial Planning. His focus in financial planning is to coach people in the process of meeting their goals and achieving their dreams.