You’ve worked hard, raised your children, paid off your home and retirement is in full view. For many retirees downsizing tends to be the next step.
Empty nesters may not want to live in a large house and their adult children are likely settled into their own homes. It is not uncommon for this aging population to sell their house, downsize and enjoy the profits of their investment. It is also quite common for aging parents to share the wealth with their grown children as they make their way through the working world as their parents once did. However, seniors facing health challenges will largely rely on their retirement funds to further support them. In a recent article in The Globe and Mail, certified financial planners emphasized the need to assess your risks. According to the article, if the home sale is less than a $1-million, it is recommended to invest the money in exchange-traded funds or other low-cost mutual funds or pooled investments. A certified financial analyst is recommended if there’s more than $1-million from a home sale to find the best bargains for equities and to manage the portfolio over the long term. This is especially important since many adult children make the assumption that their parent’s investments are automatically theirs. In particular, the profits from a family home can become a contentious issue among siblings; so, it’s important that intentions are clear sooner, rather than later.
It’s also important to stay updated with the current real estate trends and statistics regardless of your future plans. Life is uncertain and our needs change with the seasons of our lives. It is vital to consider how your quality of life will be impacted by your property investments, both now and in the future. It’s great to think that you’ll have a lovely retirement nest egg, but if you don’t fully understand your mortgage and your finances, retirement may not be as desirable. Once again the tried and true personal philosophy of Azim Rizvee, Founder and CEO of MinMaxx, remains relevant: think big, start small, and act fast.
Do you have questions about your real estate investment? Give us a call or send us an email. We’re happy to help, so contact us today! Phone: 416-264-1111/Toll Free: 1-888-MIN-MAXX or Email: [email protected]