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Dis way or dat a way?

quik story - 12 yrs later, one high paying stressful tech job, one disabled 6 year old, one less-than-healthy-thanks-to-pg-stay-at-home-49 year-old-mom, one male mid-life crisis equals separation. I am the wife. Lawyers pending, I’m the mommy, I do all the work. Financial consultant says when you get your half of the main asset, the house(almost everything went into the purchase and the renos), find a rental suite to live in and put everything into dividend funds for a guaranteed monthly income to supplement child support. AAck! What about buying a townhouse and having no mtge and a place to call my own? What about finding a way to stay even though I can’t imagine how I could buy him out! Which is why I found this website tonight - dividend funds - are they a reliable source of income in such a scenario? My rich Dr. friend says no way, bad idea. Without paying a handful of ‘consultants’ for their opinion - how am I supposed to decide this?

Lost in the dark land of advice.. bright lights needed..
 

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Dis way or dat a way?

quik story - 12 yrs later, one high paying stressful tech job, one disabled 6 year old, one less-than-healthy-thanks-to-pg-stay-at-home-49 year-old-mom, one male mid-life crisis equals separation. I am the wife. Lawyers pending, I’m the mommy, I do all the work. Financial consultant says when you get your half of the main asset, the house(almost everything went into the purchase and the renos), find a rental suite to live in and put everything into dividend funds for a guaranteed monthly income to supplement child support. AAck! What about buying a townhouse and having no mtge and a place to call my own? What about finding a way to stay even though I can’t imagine how I could buy him out! Which is why I found this website tonight - dividend funds - are they a reliable source of income in such a scenario? My rich Dr. friend says no way, bad idea. Without paying a handful of ‘consultants’ for their opinion - how am I supposed to decide this?

Lost in the dark land of advice.. bright lights needed..
Dividends can be reliable, but they don't always keep up with inflation. There is something to be said about being able to sleep well at night. If buying a townhouse will make you sleep well at night because you feel more secure for you and your child, that might be the best solution.

The issue will be even without a mortgage can you afford a townhouse? You state you are less than healthy, and are a stay at home mom.

If you are going to have enough money to buy a townhouse without a mortgage, you should spend some of that money to meet with 'consultants'. Sometimes you need to spend money to get advice that is specific to you. We can only comment on the information we know, which is limited.
 

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I can't imagine a scenario in which the sale of your house and your half of that money would provide any meaningful income that would equal the amount of rent you would have to pay.

From what I have learned on this forum the stable dividend funds pay tops of 5% and less.

$100,000 = $5000 per year or $416.66 per month.

I have a paid off house and I can tell you that it is lovely for stability. The townhouse might appreciate in value as well. If your child is disabled you may need expensive modifications to accommodate the disability and that is not exactly what you want to do to a rental property that you may have to move out of.
 

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Be careful about consulting with "consultants" who have a stake in a particular outcome. "Financial consultant" gets nothing if you buy a house. Real estate broker gets nothing if you put all the money in dividend-paying stocks.
 

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if by "this website" you mean canadianmoneyforum, then yes, you have come to a good place. There are some astonishingly capable & knowledgeable people on these message boards, and believe it or not they will be ready to help you, all without any gain to themselves !!

for starters moneygal's suggestion to be skeptical about self-interest in consultants promoting one or another instant solution to your questions is excellent. As you know, the fund salesman has something to gain, the real estate agent also has something to gain.

even though a time of crisis is turbulent & distressing, would you be able to slow down as much as possible so as to make the very best decisions for your wee family. Can your lawyer help you gain as much financial support as possible during a period of time in which you evaluate your choices. I don't mean a few weeks, even though the parties may be anxious for a divorce. I mean extra financial support for at least a full year, better two years, before regular child support kicks in.

since you may be staying home to care for the disabled child, i am wondering if it might be possible to take in another disabled child in a day-care situation, or even possibly two or three, depending on your personal strengths and what kind of outside health & social worker support you could muster. In other words, would you be a person who could consider launching a tiny home business of this nature. I have never heard of such a thing, but there might be other models in canada, and surely the health authorities in your area can tell you if there is any need for such a place. It would follow that, if any of this were to come to pass, then a townhouse or dwelling bigger than a bare-bones rented apartment would be necessary. Access to a garden & compliance with fire code regulations would be required.

speaking of access to a garden, this leads me on to wonder if the "reno" you mentioned included modifications to the existing house so as to accommodate the disabled youngster. If so, it would surely be a sacrifice to sell that house, and another sacrifice to have to modify a townhouse after you would buy one. This is just one of the reasons why i mentioned that a prolonged period of careful study would benefit everyone in this situation. (Your husband would perhaps not be happy at first, but probably in the end he would benefit by knowing he had done the right thing for his child.)

take care now, and come back soon. Our hearts are with you.
 

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Scratch the dividend fund idea because you will be renting as said by Berubeland which will cancel some or all of dividend fund income benefit. I really like Humble pie's idea of setting up a business in the disability field in your own house I have heard you can earn a lot from this type of work. You can then also consider employing someone to help you if this idea appeals to you.

So in your thinking process try to turn things into opportunities so you can give yourself the best life possible from the cards you have been dealt. Good luck to you and I hope what has been said here actually helps you think through some of this.
 

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Let me share with you a personal story.

My father passed away (to leukemia) when I was less than 1 year old. For largely religious reasons, he didn't believe in insurance, and as such, left very little money for my mom to raise me & my sister, hold the funeral, and what not.

My mom visited an accountant, who, despite her career as an elementary school teacher, told her that her best bet would be to sell the house, cottage, car, and move into socially-funded housing with her kids. (This was the late 1970s; views of women-in-the-workplace have changed a lot since then.)

Suffice to say, my mom didn't really like the prospects. She knew little about investing, but took it upon herself to learn everything that she could. As it turns out, she was really good investing, and her prowess in day-trading using straggles and strangles (I kid you not) supplanted her income nicely. While we couldn't spend lavishly, my sister and I grew up in a very middle-class home, had a housekeeper, and never really felt like we'd lost out.

There isn't much of a moral to this story; it's just how things went. But perhaps you can walk away from it with the conviction that if you take responsibility for your own investments & spending habits, you'll pull through it.
 

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Discussion Starter #8
I knew I found a few bright lights!

I am heartened that each of you took the time to reply to my pleas! Thank you very much... My head was bouncing up and down like a bobble-head doll.. "yes, yes.. I agree.. thank goodness, it's not just me!" Nothing is ever simple or straight-forward and I will have to engage with a few more professionals given the specifics. Many years ago, I let go of my own direct involvement in the money management - time to dust off the cerebellum and get back on track.. thank you! I'll be back!
 

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If your share of the house being sold is enough for you to buy a townhouse or condo mortgage free, go for it.
You need a place to stay and call home for sure.
Somehow the idea of taking your share of the settlement and sinking it all into the stock market does not sound like an exciting idea (dividends or not).
Sinking maybe too strong a word, but you know what I mean.
There's talk of upcoming market "corrections", new lows, interest rate hikes, etc. why take the chance.
 
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