Thinking About Retirement?
Time to Re-examine Your Goals

by Irene Segal

DETERMINE YOUR NEEDS AND INTERESTS
Before you being to make decisions, you will want to sit down with your financial advisor and survey your overall financial situation to get a clear picture of your available, financially feasible options.

A competent professional financial advisor will have the tools to help you with this process. Together you will examine the real cost outlay involved in retirement plans to determine how much money you will need in order to retire in the style you desire as well as the projected income levels you will receive from all sources including pensions and investments

Finances are not the only factor. If you have no current health problems, maintaining your present home may be practical. If you desire to downsize for any number of reasons then your financial advisor will review your options with you.

One discreet financial advantage to downsizing is the potential for generation of income through investment of the capital you receive from the sale of your home. Selling your home could result in a windfall that you could invest for regular returns to supplement your already existing retirement income. This can be a very appealing concept if projected income from your retirement nest egg does not match your projected spending plans.

1. THE RANGE OF POSSIBILITIES
Your goals for retirement, your expected income and expenses, your health are all factors as is the retirement lifestyle you want. The range of possibilities includes downsizing, buying or renting a condo or apartment, doubling up on summer and winter homes.

2. LAST DITCH SOLUTIONS:
Some seniors reach retirement without adequate financial resources. The home may be their sole large asset. Seniors in this situation may find the idea of a reverse mortgage attractive, as it is a way to generate cash flow. With a reverse mortgage, the bank issuing the mortgage gives the homeowner a loan which is used to purchase a life annuity that provides an "income stream " to the homeowner who remains in the home while the interest owing on the loan builds up against the property. Upon death, the homeowner's estate repays the loan plus interest out of the proceeds of the sale of the home.

This concept does have major disadvantages as the homeowner continues to have home maintenance expenses, income generated may not be high enough and the homeowner might be better selling the house and investing its full value. In addition interest on the loan must be paid back by the estate, which may leave little left for any heirs.

3. SECURE YOUR FINANCIAL SITUATION TODAY
Ultimately, your decisions about your retirement home will depend on two factors: your financial situation and how you want to spend your senior years. You're financial advisor
will work with you to secure your financial situation today, so you will be far more able to make your choices in the future based on what you really want to do and not only on what you can afford.

Financial Planning & Wealth Management,
Investors Group, Regional Office
416-491-7400 x 529
email: irene.segal@Investorsgroup.com