When retirement is on the horizon or you’re already retired, you may start to think about downsizing. Often, it’s a difficult decision that involves considering a variety of financial, psychological and practical factors.
SELLING VERSUS STAYING
Homeowners are commonly motivated to sell when their home represents a sizable proportion of their net worth and they wonder how unlocking that capital might enhance their retirement lifestyle. However, the decision to sell isn’t always financial. Your home might be close to work, but now you want to be closer to nature. You might want a condo to make life easier—no more shovelling snow, mowing the lawn or replacing a roof or furnace. Perhaps you plan to spend warm months at your vacation property and enjoy wintertime down south.
While you’re thinking of selling, you might also be weighing reasons to stay, and there could be several. Your home may be the place you feel most comfortable. You might want to avoid the stress of moving and finding a new doctor and dentist. You may wish to keep your home as the family’s gathering place for holidays and visits. Perhaps you want to keep a larger home if your aging parent moves in or an out-of-work child returns temporarily. Your estate plan may also include leaving the family home to your children.
MAKING YOUR DECISION
While you consider the personal side of things—the psychological and practical factors—you can involve us to assess the financial situation. For example, we can look at the net gain of downsizing after accounting for the cost of your next home, and project the impact on your income or other retirement needs and goals. You’ll feel more confident and comfortable about your decision when you have all of the personal and financial factors in front of you.
This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered.
This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing
individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with
applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember
that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness.
All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and
Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever
in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of
the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association
of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2022 CI Assante Wealth Management. All rights reserved.