Home Investment

A Great Retirement Strategy

For many Canadians, retirement seems like a long way off – especially at the peak of a successful career. With the arrival of better health care, longer life spans, and news of the retirement age increasing it may very well be that the end of your work life is a fair distance away. However, it’s never too early to start the retirement planning process.

1- Manage Your Mortgage

Owning your home gives you a significant advantage when it comes to planning your retirement. With each monthly payment you are building equity and, if you align your payoff date with your retirement, decreasing your need for cash flow post-retirement. If your interest rates start to fall, you might want to think about refinancing your mortgage. Make it a goal to pay off your mortgage completely by the time you’re retired, saving yourself the monthly expense of hundreds of dollars will be a big relief for both your bank account and peace of mind.

2- Think Long-Term

Now is the time to be taking into consideration how you want to spend your retirement. What kind of lifestyle do you see yourself living? Will you be traveling? Spending more time with the grandkids? Once the career life is over, you get to reap the benefits of your savings by beginning the life you’ve always dreamed of. Make a list of categories that outline your plans and list all of the expenses involved along with a maximum budget goal.

3- Chip Reverse

A reverse mortgage is a loan that is designed for homeowners 55 years of age and older, secured by the equity in the home. It allows homeowners to obtain cash without having to sell their home. You could access up to 55 % of the value of your home. You always maintain ownership of your home and never have to move or sell.

Talk to your mortgage agent about the advantages and disadvantages of a securing a CHIP Reverse mortgage. With careful planning, home investment can work as an excellent retirement strategy. Talk with a mortgage agent today.