Hello all, My mom, who is 59 years old, received $200,00 in her divorce settlement. This is her only retirement fund . She has no debt, a take-home pay of $1750, and her current rent is $1100. She is thinking about using all of the fund to purchase a house with cash and then saving every month for retirement. I'm not sure what she should do. If she left the money in the bank and got 8% she would have $350,000 in seven years. If she bought the house she would probably save $400/month for retirement which amounts to ~$35,000 in seven years. However, she would also own a house which is worth ~$200,000 and she wouldn't have paid rent to anybody for seven years. Which option would be better?
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