My wife and I both grew up poor and now make what is, to us, a lot of money – about 160 combined. Between us we have 3 parents still living, all in their late 60s, average health, and still working low-income jobs. We have always known we’ll be responsible for them when they can no longer work – but I don’t know what the most effective way to save money for that eventuality is.
A little more info on the parents, in case that’s relevant:
Wife’s mom: Has a small retirement fund from her factory job of 30 years. lives in a paid-off house that is in bad shape (ie she’ll have to be moved out at some point when her health starts to go). No significant debts. Wife has 1 sibling who makes around 80k and will help us however she can.
My parents: Have only been saving for retirement for 10 years. House is not paid off, not sure how much they have left. Significant debts – my dad is self-employed and has various business debts, I don’t know how much. I have one sibling who is currently not in a financial position to help.
I’ve just been saving as much as possible, but wondering what I should be doing – like an age-targeted fund even though it would only be for a few years? Or CDs? Help please!
EDIT: we are already saving for our own retirement – maxed out on both employer plans + additional/separate Roth IRAs. We do not and will not have children. 160 is where we are right now, but my wife in particular is likely to significantly increase her income over the next few years based on her career path.
We are not going to leave our parents to suffer for their bad decisions. Some of their choices were bad, and some of them made it possible for us to have the lives we do today. We are from cultures that value taking care of your parents, and that is an important value to us.
