Hello! I am a single mom of a 16 years old daughter.
When I got divorced, 15 years ago, I stayed in the apartment we- my ex and I- bought together. I am still in the same apartment and we are relatively comfortable but I would love to buy a small house with a small yard for us (I also have a dog).
I work 30 min driving from where I live but closer to my daughter’s private school. Next school year, my daughter is going away for an academic year to Italy, and I will be by myself. I would like to add that right now I pay mortgage comfortably because I bought this condo in 2007 and I think I could pay it off in less than 10 years but I need to do renovations.
By the way, I am 53 and I will retire at 60 or max 62. My question is: should I buy a house or stay where I am and spend the money on a major renovation? In two years, my daughter will be in college and I am freaking scare of how much people pay. I started having panic attacks- no kidding.
BUT everybody is telling me she will get Financial Aid and Scholarships. She is a very good student and she gets 90% financial aid of the tuition in her private school. I have to add that my apartment, although is old, it is in a good location, near the T, the beach, Boston, and walkable everywhere.
What should I do- brain or heart/happiness?
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Hello fellow single Mom,
I understand this is an anxious time for you as a single mother trying to make the best decisions for your daughter’s future education and your own retirement. Please know that your concerns are valid, and it’s understandable to feel overwhelmed. I went through my own divorce and I can relate to your concerns on a personal level, and have fellow divorced Moms who are clients. My financial planning practice focuses on women and solving their concerns.
Firstly, I want to commend you for being a dedicated mother and prioritizing your daughter’s education. It’s wonderful that she is an excellent student and may qualify for financial aid and scholarships for college. This could significantly reduce the burden of tuition costs. I would recommend starting the application process for financial aid and scholarships as early as possible.
Regarding your housing situation, there are pros and cons to both options. Staying in your current apartment may be more practical, as you mentioned it’s in a convenient location and you could potentially pay off the mortgage in the next decade. However, if you desire more space and a yard, buying a house could improve your quality of life. Consider the costs of a new mortgage (mortgage rates are higher versus 10 years ago), property taxes, and maintenance expenses against your projected income and retirement goals.
It’s also important to factor in your retirement plans. Retiring at 60 or 62 may be feasible, but it could impact your long-term financial security. I would be delighted to work with you further to explore the feasibility of an early retirement.
Remember, you are a strong, capable woman who has already navigated challenges as a single mother. With careful planning you can make the best choice for your futures.
Warmly,
Tamara
CERTIFIED FINANCIAL PLANNER™, Fee-Only FP and Investing for ALL
Hi Single Mom,
Congratulations you sound like a single-life success story!
You have raised a smart-cookie who is college-bound. Your mortgage is low and can potentially be paid off within 10 years. You have a retirement goal for yourself of 7 to 9 years.
At the same time, becoming an empty nester and retiring are major life transitions. How will this impact you and your dog?
Do you see yourself working on projects like painting your home (this could apply to both your current place or a new house)? Are you a gardener at heart or do you prefer tending potted plants? Would you be rattling around a larger house because your daughter is out on her own or would you turn the spare bedroom into a studio for long overdue projects of your own?
It sounds like you could benefit from additional analysis of your, “brain or heart/happiness“, and how this financially impacts you in retirement.
My name is Marianne Nolte, CFP®. My mission is to deliver financial clarity, education, and peace of mind to women.
CLICK HERE to book a free consultation.
Best regards,
Marianne M Nolte, CFP®
Imagine Financial Services
www.imaginefinancialservices.com
mnolte@imaginefinancialservices.com
Call or Text: (760) 472-5155