Q.

I’m 59 years old, a widower for over ten years and have three kids, ages 14, 19 and 21. My goal is to help them financially for the future. I make just over $100,000 in the Ontario bureaucracy. I owe $59,000 on my mortgage that I want to pay off before I retire in about three years. I pay $1,700 a month in mortgage payments. I estimate I will earn about $40,000 annually in Ontario pension and I plan on working one full year or more after I have paid off the house. So about $1,000 a month will go to the kids every month for at least 12 months. This money will likely go into

tax-free savings accounts

(TFSAs) and/or stocks for them. Is that a good move? I’m also planning on getting a part-time job in retirement, so I’m guessing around $40,000 a year will be added to my pension income for a few years.

My assets include $100,000 in a

registered retirement savings plan

(RRSPs) and I plan on leaving the kids the house, which is worth about $800,000, in my will. Any suggestions on what I can do for them, as well as what I should be investing in for my retirement?

—Bill, in Ontario

FP Answers:

Bill, there are several things you can do to help your kids financially without putting your own retirement at risk. Parents often ask what more they can do to give their children a strong financial start. For widowed or single parents, the question carries extra weight because every dollar has more than one job to do. When you’re juggling teenage and young-adult children, a mortgage nearing the finish line and retirement close enough to feel real, the pressure can be intense.

The good news is that helping your children does not have to come at the expense of your own financial security. In fact, one of the most important gifts you can give them is making sure you don’t need their help later. A core principle worth repeating is that no one lends money for retirement. Children can borrow for education or get help starting to invest but a parent who reaches later life financially stable is far less likely to become a burden — emotional or financial — on their kids.

At 59, with roughly $59,000 left on your mortgage and a plan to eliminate it before retirement, you are making a sound and often underappreciated decision. Entering retirement mortgage-free dramatically lowers fixed expenses and provides flexibility, especially if expected pension income is in the range of $40,000 a year. That $1,700 monthly mortgage payment is doing real work. Once it disappears, the return is not just financial but psychological. You will have fewer obligations, lower risk, and more freedom to choose part-time work because you want to, not because you must.

When it comes to supporting your kids, timing and structure matter. Once the mortgage is gone, redirecting about $1,000 a month toward helping your children, particularly by

investing through TFSAs

or similar vehicles, can be a smart move. But structure matters as much as generosity.

For adult children, TFSA contributions are one of the most powerful tools available. Early contributions allow decades of tax-free growth, which can quietly transform long-term outcomes. The key is that the money must truly be theirs, invested appropriately for their age and risk tolerance, and not treated as a short-term spending account.

For a 14-year-old, direct investing isn’t an option yet. At that stage, the most valuable support may be flexibility rather than assets, meaning help with future education costs, minimizing student debt or setting aside funds that can be transferred once adulthood is reached. Just as important is financial education; learning how money works before mistakes become expensive.

One caution is worth emphasizing. A one-time burst of support — say $12,000 over a year — is generous and manageable if your own plan can withstand it. But open-ended financial help that extends into your retirement years can quietly erode your long-term security.

It’s important to keep in mind that inheritances are not a retirement plan for anyone. You also plan to leave your children a home currently worth about $800,000. That is already a substantial future gift. It’s easy to underestimate its value or feel pressure to do more on top of it, but you don’t need to.

Importantly, relying on the home as a legacy means preserving your ability to live in it or adapt your plans if circumstances change. Health-care costs, maintenance or a later decision to downsize may all come into play. A will that leaves the home to your children is appropriate, but it should be paired with flexibility, not guilt-driven promises. (And if one of your children is still a minor,

estate-planning rules

may require additional planning with a lawyer.)

It’s also important to really examine your retirement investments. An RRSP balance of $100,000 may look modest, but the picture changes significantly when paired with a defined-benefit pension. That pension provides predictable, inflation-adjusted income, something many retirees never have.

Given this foundation, retirement investing should focus on disciplined growth rather than speculation. Low-cost, diversified portfolios are far more appropriate than individual stock picking, particularly when money is tight and mistakes are hard to recover from.

TFSAs for you also deserve attention. Even small, consistent contributions between now and retirement can create flexible, tax-free income later, especially valuable once pension income pushes you into higher tax brackets.

And while working longer is useful, it is not guaranteed. Earning part-time income in early retirement can meaningfully improve cash flow and

reduce pressure on savings

. But health, energy and job availability can change. Think of post-retirement work as a bonus, not a pillar your plan depends on.

The bottom line? You are already helping your children by being thoughtful, disciplined, and realistic.

Being financially independent and modelling good financial judgment may ultimately matter more to your children than any cheque you write today. Your thoughtful approach to planning your finances is a positive step in showing your kids exactly how financial peace of mind is reached.

Janet Gray is an advice-only Certified Financial Planner with Money Coaches Canada in Ottawa.

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