Where to start? Well, I am 54 years old, and was widowed 8 months ago. My husband had a stroke and died unexpectedly. When he died we had a home equity line of credit of about $93,000 and about $22,000 on our mortgage. I had about $80,000 in savings.
I was able to pay off the mortgage with part of his life insurance proceeds. So I now own the house free and clear, thank goodness.
The other fly in the ointment is that he had not filed his taxes for several years, so I have the rest of the life insurance money in a savings account waiting to see what that is going to come to.
I have paid the HELOC down quite a bit in the past few months, and this month I will be withdrawing $5500 from my TFSA that was only earning 1.35% and putting that on it.
I was hoping to have a nest egg of $350,000 in place by the time I was 60 so that I could semi-retire and just do books from home. I haven’t totally given up on this, but it doesn’t look good.
I might eventually sell the house and down-size to a condo, but I have a dog and cat to consider, so I haven’t made a decision about that.
At the moment this is a snapshot of my finances:
- Chequing: $2600
- Life insurance money: $100,000
- Investments and Saving: $87,173
- Line of Credit: $-80,724
- House: $250,000
So, that is it in a nutshell. This blog will follow me as I try to get rid of the HELOC, and build my nest egg to at least $350,000.