Financial advisers typically caution against relying on home equity to fund retirements, however without adequate savings to support their golden years, some retirees may find leveraging their home as the best option
. Canadians are now leaving the work force at a time when interest rates are at their highest levels in decades.
If expected cash flows are negative, then it makes sense to factor your home into the retirement equation, said Sheldon Craig, CFP with Craig Consulting in Osoyoos, B.C. If someone’s, for instance, “runs out at 75, they may want to make a decision a few years prior to running out of money, say at 70 or so,” he added.
“Downsizing doesn’t necessarily mean less cost,” said Burlington, Ont.-based CFP Ty Cooke at Richardson Wealth. However, he said it can provide a more convenient lifestyle to seniors who become renters and no longer have to deal with the hassle of maintaining a property. Another option is to take a loan against the value of a home. But with the recent rise in interest rates, clients are not as comfortable doing that, Ms. Chung said.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As financial pressures grow, Calgary's Love With Humanity Association distributes free produce, fruitAs the cost of groceries continues to climb, a Calgary organization is stepping up to help low-income families.
Read more »
A homeowner splitting costs with a new partner is a financial, legal and romantic minefieldYou’re better off arguing about money early on and signing a cohabitation agreement, but don’t expect it to necessarily be easy.
Read more »
The Barbie movie has completely taken over Toronto and let's count the waysSorry Christopher Nolan, Oppenheimer has been a blast, but there's no denying it, Toronto has the Barbie fever. The Warner Bros pic has arguably b...
Read more »
Ethereum: Total ETH staked by validators surges to new peakDespite the activation of ETH withdrawals post-Shanghai, the validator count continues to increase.
Read more »