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This is what a good friend of mine who never married has done that as well. She worked for years in a state government job- the salaries were notoriously low for state employees in this state, so I know she wasn't rolling in the dough ( I worked with her for 15 yrs at the same job), but there was a defined pension benefit and we paid into SS,so she's collected both. Adequate but not a stellar retirement income, and I never asked her about her investments so I couldn't say, but I imagine she had some savings. She bought a duplex in the 70's, lived in one half herself and rented out the other half, and made some money on the other half she rented out.
She's been able to travel quite a bit, and seems to be doing very well with her retirement.
It really doesn't take much... a 2 to 4 unit property is almost the same as a single family as long as the owner lives in one of the units.
Having rental income also means you can write off/depreciate expenses attributed to the income... could be 50% of the cost of a roof on a duplex.
Another one of my friends jumped in with both feet... she bought a 4 plex near where she worked... the rent from 3 units covered the taxes and mortgage from day one... as people moved she raised the rents and eventually it only took the rent from 2 units to cover...
Being a landlord (landlady) isn't for everyone, especially if you're living in the same house. Sounds like easy money, but the income isn't really "passive." Consider carefully the responsibility it entails, unless you -- OP and daddy -- plan to manage things for her. Signed, "landlady of ten years and never again."
Most of the better things in my retirement were made possible by the wise use of common stock. Research a couple of good companies -- preferably a mix of emerging growth issues and basic industries with a solid dividend-payment record. And firms in which you have some direct knowledge due to your own career usually offer an advantage. You can start small via fractional shares and plow the dividends back in, preferably with a little more cash now and then. The rest usually takes care of itself, but you can also consider mutual funds if you're wary of individual stocks.
With regard to the rest, I have a small network of people, most of them 5-20 years my junior, whom I've met and shared some good experiences with along the way. I also had an unmarried career-educator uncle who was a great influence when I was younger. When he passed on (and he lived to just short of 92) I bought his house (a good-sized one) from his estate and, with the help of some of those friends, turned part of it into a rental; and when the time comes that I can no longer make use of it, it will benefit some of the "people I belong to".
Foresight almost always pays off .... the principal rule is simply to make a plan and stick to it.
Last edited by 2nd trick op; 02-04-2016 at 09:17 AM..
I married late in life (age 27) and was married for nine and a half years. That means I've been single (divorced) for 35 years (from age 36 to age 71) - long enough so that it feels at times like I'm a single "never-married" retiree. So while technically I do not qualify to answer the thread question, I will do so anyway because I think I'm close enough.
I think a single person plans for retirement exactly like a married couple does. True, the married couple has some advantages tax wise, and they have another big advantage if they are a two-earner household, but that doesn't fundamentally change planning for retirement. That is because people have to plan given their income level and their spending habits as well as the specifics of their job situation, and all that remains true for couples and for singles.
In one respect the single person has fewer complications in making choices; just think about the whole complex spousal benefit issue with Social Security. If the single person has a pension, all those options about survivors benefits purchased through reductions in the primary pension amount are simply moot.
Your single friend being "fearful of every bump in the road" may be more the effect of her own personality than the effect of being single, it seems to me.
I am single and live by myself and it suits me very well. My retirement fund is decent SS and a decent though not munificent fund of savings. I am working as long as I can because I enjoy working.
It is not necessarily true that people who live alone are lonely--I work with people all day long and like my time at home. When I travel, I prefer to go solo, and often go to Japan by myself. I like to immerse myself in other cultures, and no matter how well I like a travel companion, it changes the trip.
I'm not sure how many here will agree with this, but it's the simple truth for me. I grew up in a medium size house as part of a jumbo family and I really, really, like the peace and quiet of my little house. Just as I like dealing with people daily, I like going home and doing just what I want. I am 67.
Great post.
I am also single with no kids.
I have always feared being an old homeless bag lady (I think I saw a Bette Davis movie about this at a young impressionable age).
Your daughter may one day wake up and decide she hates the whole working thing. That's when she'll start planning. It usually hits around 40, so with her pension and the fact that public sector now pays as much (if not more) than private sector, she'll have plenty of time.
Last edited by Red On The Noodle; 02-04-2016 at 11:12 AM..
I have to agree with the person who mentioned a house. As a single never-married woman I own a very modest, very small home in a blue-collar type neighborhood. When I initially moved in, I had to do some major maintenance on the house which is fine but I didn't have enough money leftover to do fancy upgrades. At this point I do not have the finances for fancy upgrades and I've learned to live with things the way they are. However, if and when I do sell the house, it will not fetch much money, not enough to buy into a fancy assisted living facility.
Compare that to most married couples who have beautiful $300,000+ homes in nice neighborhoods. Having 2 incomes provides a much grander house for a married couple and they can build up that much more equity to come out with in retirement, unless of course they stay in the house and continue to pay the higher bills for taxes and maintenance.
As for "single" women who were married but end up getting divorced and not coming out with anything, well, I can see that maybe they are even less ahead than a single never married woman, especially if they stopped working during their married years. However, if you get married, you are giving yourself at least a CHANCE to gain an economic toehold and/or to jump to the next economic rung of the ladder. Whereas a single never married woman doesn't get that chance at all.
I know a woman who was married and is now divorced and from the divorce proceeds she was able to buy herself a vacation home and also owns a small condo. Many women can do well once divorced--they are successful at a job, their own business, or even inherit some money.
The issue for single never married women is who will be there to help us if we are in an accident and need someone to manage our financial affairs temporarily or take care of our homes if we are in rehab. Some of us do not have any family nor do we have friends that can do it or neighbors. I think that is a major concern for single never married women. Lack of support systems.
Well, you can remedy the lack of friends if you try. Shut people out or don't bother with them, and that's what you get ... no support system. Of course, lack of support systems when they're old is not just a problem for single never married and childless women.
A friend of mine (now 67) always hated working her various jobs, was asked to marry by one well-off doctor and one very wealthy businessman (she said, "I would have hung myself if I married one of them"). Around 4ish, she heard an NPR story about older single women being broke, panicked, got a real job doing real estate rentals for about 15 years, bought a two-family out of town, inherited a small Florida house and ekes out a living between rentals and early Soc. Security, spending winters in Florida. She's the most frugal person I ever met, but she finds jobs and northern winters more onerous than being tight with a buck.
We were looking for a two-family together, but couldn't find anything where I wanted to be. A good thing. I've always worked full time and spent fairly freely. But I have a job where there's a good pension and I plan to sell my lovely house here and move to a small Western town, my last daydream to accomplish.
I don't think it's marriage/or-not that makes the difference, it's having children, especially if the woman compromises her income options in favor of family.
Being a landlord (landlady) isn't for everyone, especially if you're living in the same house. Sounds like easy money, but the income isn't really "passive." Consider carefully the responsibility it entails, unless you -- OP and daddy -- plan to manage things for her. Signed, "landlady of ten years and never again."
That's why property managers who take a flat cut (often 8%-10%) are a good business - they pretty well automate the process much of the time for the LL.
Assuming you can find a good one (a PM who isn't available when the furnace goes out or doesn't screen applicants is worse than none at all), and many small towns have none. In other words, this is a "pension plan" that isn't for everyone. Where is she going to get the disposable capital for an investment property if she hasn't even funded her own retirement?
Property management seems to be easier to find and more professional for large complexes, not so much for a single property or lower-level cost property. I found this out the hard way in 1990 and couldn't replace my useless PM long distance no matter what I was willing to pay.
I'm just not cut out to be a LL, I know that.
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