I sent in some paperwork two weeks ago to set up a ROTH IRA for my mom. They requested additional paperwork and I finally got everything in today and the account is set up now.
My mom has no idea what is an IRA. I tried explaining it to her but she doesn’t really get it. She’s one of those really hard working immigrants that came to America for a better future for her kids. For decades she has just been working in low paying labor-intensive jobs and pushing her kids to do well in school and hope they’d end up with a better job than she has. Her jobs don’t have 401k or pension (hint: Chinatown sweatshops). She’s going to depend on her kids for income in the future. Her investment is her children. She expects to receive regular payments from her kids.
I just took charge and decided to take care of her retirement funds. Since she has low income, I decided that ROTH IRA is the best choice for her. I’m going to get her to contribute regularly and I’ll have to oversee all her investments. Initially, I’m going to make her take some risk. As time goes on, I’ll start to diversify the investments for her. So as she approaches her retirement age, she’ll have a more stable portfolio with bonds and fixed-income funds.