Single 55 yr old woman. What’s next?

[sufi]

Single 55 yr old woman w/2 adult dtrs living at home while still in university. I’ve paid off $150k of debt in 5 years. I only have $110 000 in investments. No pension or benefits, no savings but can access a heloc if needed. I’m a contractor and anticipate this assignment will last for 3 more years so I’d like to set myself up as best I can in case it doesn’t renew and I’m 3 years older.
I have no other debt other than my mortgage. I owe $175k at 1.59% renewing May 2026. I have about $2500 I can throw to savings or the mortgage. Please advise.

 

[marine04]

@sufi Do what you can to have continued employment. You're not going to be able to retire at 58 when your contract ends. You're probably going to have to keep working for a while. But if you are able to save 2500/month while working that is great.

If the kids move away after university, look at the costs of remaining where you are versus downsizing. As part of that, have a conversation with your children to let them know your financial situation.

 

[sufi]

@marine04 I’m fortunate to have a two bedroom basement suite. My kids know that once school is done they either have to pay rent or move out so I can rent it out. I purposely bought this house because I didn’t receive child support and I used that for extra income before they both moved into the basement suite.

 

[cradlerc58]

@sufi It's really sad that this is the state of our country that we need to charge our children rent in order to survive.

This is not the case in many many countries. You say you charge your kids rent in south America or Greece where I am visiting now and they will look at you like you're an alien.

 

[pacific75]

@cradlerc58 They don't charge rent, but their retirement plan is also their kids

 

[frbasil]

@pacific75 Many parents plan is retirement with kids here - but do the rent, kick out thing anyway in the most devastating economic expensive time on record

 

[dawnbirduk]

@cradlerc58 I mean I’m they essentially own two housing units so it’s not that sad a story…

They also can likely retire just fine by moving into the two bedroom suite when their kids move out.

If the upstairs is a moderately nice 3 bedroom in a city it’s going to rent for $2500-$3000. That 30k a year would go a long way to retirement if mortgage is paid off.

 

[miabby]

@cradlerc58 I was told at 18 (2002) I needed to pay rent or move out. I moved out. Wish I would have just stayed home and paid the $200/mo my mom was asking for....

Edit: I also have three children of my own now and when they are out of school they will be told the same unless they are going to post secondary.

 

[louisaegg79]

@miabby Man, you north Americans are cruel as fuck. You would kick out your own child if he doesn't give you money? This is one part of "Canadian" culture and mentality that I will never understand.

The relationship you guys have with your parents/adult children is wild to me.

 

[saraila]

@louisaegg79 Not really cruel just different. We tend to not want our children to be burdened by us in old age whereas many other cultures retirement plans are their children. Very few likely charge anything close to market rent, and even then only after they are done schooling.

Multi generational households in other parts of the world tend to have the same basic structure even if postulated differently. If you're in a position where you contribute nothing after completing schooling, and also have no obligations for later on in your parents life I'd love to understand how that works. Outside of generational wealth that's not sustainable for most.

My toddler won't be expected to contribute until they are an adult, and even then only enough to help ensure their future by not being burdened by us. We're also fortunate enough to be financially able to provide that. Many families are not.

The further up the financial ladder you go the less cruel reality is.

 

[liaamsmithh95]

@louisaegg79 Buddy. We raise kids and pay for everything. Then they move out. Get good jobs, buy houses, get married and pretend we never existed.

In other countries kids help their parents and parents play an important part in raising grandchildren.

Not Canada or the USA

I am talking multiple generations here...likely at least since the 1880s

 

[nackyy02]

@cradlerc58 The opportunities were there. We don't know the OP's background.

 

[davenoonan]

@cradlerc58 Douchebros in those countries expect mom to cook and clean for them when they're 40, so no.

 

[birdlegs]

@cradlerc58 They're not kids, they are adults. Adults pay rent.

 

[rachelm2535]

@birdlegs hahaha when u think an 18 year old is an adult. You can't even finish trade school by then. Most people graduate when they're 17-18.

this is why this country is fucked. parents love kicking out their kids at 18 and then they end up fucked cause their parents didnt give them the runway to take off on their own.

 

[liaamsmithh95]

@rachelm2535 My kids were welcome to live at home if they were in school.

They were NOT welcome to lie on the couch eating everything that didn't move, not contributing to housework and just partying. If that was what they wanted they needed to work. If they are working they need to contribute to the household.

Easy decision.

 

[rachelm2535]

@liaamsmithh95 I can agree with that.

 

[louisaegg79]

@birdlegs Have fun in a home. They don't stop being your kids once they turn a magical age lol.

No wonder retirement homes and day cares are such a big business in canada. Grandparents don't want to inconvenienced caring for their grandchildren. Adult kids don't give a fuck if their parents are rotting away in a home.

This is one part of "Canadian" culture that I just can't wrap my head around. In other aspects of life, everyone here seems normal but when this topic comes up, it makes me feel like I'm a nation full of psychos.

 

[mollyb]

@louisaegg79 physical drab plucky provide voracious hunt boat special scandalous entertain

This post was mass deleted and anonymized with Redact

 

[cradlerc58]

@birdlegs Yeah... Not how it works in most of the world. Most places are much more family oriented than Canada and the United States.