No savings: Will my mother-in-law be OK in the future?

Published: November 12, 2020

Dave Ramsey

Dear Dave,
My mother-in-law is 60. She works hard and has no debt, but she also has no savings or retirement accounts. However, she owns a couple of paid-for rental properties that are worth about $350,000 each, and her home is worth $700,000. What can I do to help her plan for the future?
Paul

Dear Paul,
The best plan would be to first see if she’s already got a plan. I understand you’re worried about her not having any savings or retirement. That makes you a good son-in-law. But it sounds to me like she’s got the makings of a pretty good retirement situation lined up, even if she didn’t go the traditional route to get there. You just told me she’s sitting on nearly $1.5 million in paid-for real estate. Dude, she’s a millionaire!

If the time comes where she decides she doesn’t like landlording anymore or just wants to retire, she can always sell the rental properties, invest that big pile of cash in mutual funds, and live off the income. I’ve got a feeling this lady isn’t going to be starving or depending on Social Insecurity.

If you’re concerned about things, just sit down with her and let her know. Ask her if she needs any help with her money situation and plans for retirement. If she doesn’t want to talk about it right now, that’s fine, but making the offer shows you care. And, having a good, strong game plan means fewer worries!
—Dave