This Month’s Money Makeover

This month’s makeover Who: Sue Gililland, 59Income: $58,500Goal: Restructure finances after husband’s death to prepare for retirement.Assets: Life insurance proceeds of $122,000; retirement savings of $60,000; securities holdings of $1,500. Also, equity of $16,000 in a residence and at least $200,000 in an apartment property. Pension income of $1,828 a month at age 66 and Social Security income of $1,455 a month.Debts: $484,000 in a first mortgage and home equity loan on her residence and a $35,000 mortgage on her apartment property.Recommendations: Continue working for at least seven more years for additional income and higher pension and Social Security benefits. Sell all real estate holdings, including two timeshares, to reduce monthly expenses. Consider buying a condominium or town home with the proceeds of the sale of the apartment property. Begin moving $6,000 a year from the $122,000 life insurance settlement into a Roth individual retirement account. About the planner: Delia Fernandez is a fee-only financial planner and the founder of Fernandez Financial Advisory in Los Alamitos.