1998 Volvo V70R, ? about cat converter, turbo
 

My 1998 Volvo V70R has been having some issues lately. Brought it to our local Volvo repair shop, who has always been fairly reliable. They tell me that the catalytic converter has gone bad, and would need to be replaced. Part costs $1200, would be $1900 to install including changing the oxygen sensors. I asked about whether just the O2 sensors could be the issue, since I've seen note of that from prior owners in this forum, but he said the tech felt that the converter is bad as well. In addition, the car seems to be burning oil, and he indicated that this might mean that the turbo is going bad. There's no sign of a leak (that would be easier to fix), so he feels that the actual turbo mechanism might be at fault. Might be up to $2500 to fix that. Now looking at potential of $4500 in repairs. Ouch! Any thoughts from you guys on this one? Does this make sense, or do I need to seek another opinion? I'd rather keep the car (works pretty well otherwise), but these figures are making me rethink that goal...
Speedy response requested, as it's at the shop as we speak. Thanks

RE: 1998 Volvo V70R, ? about cat converter, turbo
 

$1200 for parts alone on the Catalytic converter sounds crazy to me, and then $700 to install just doesn't seem right either. I would ask if there is some way to get it done cheaper. I just can not understand how there could be that much labor. I did some searching for prices and the O2 sensors alone will be at least $300 and I found one catalytic converter for about $420.

RE: 1998 Volvo V70R, ? about cat converter, turbo
 

Usually the cats only go bad when an O2 sensor is neglected for a really long time.
Or if you hear a rattle at idle.

I would start with the O2 sensors only.
For the smoke have the PCV system serviced and then see if it stops smoking.