at Knowledgebank IQ | 04 April 2014 |

Downsizing

When reaching retirement one of the questions to consider is: where do you want to spend the rest of your life?

Most Australians love their home and want to stay where they are forever. Many are more flexible and, will consider downsizing due to:

  • Economic factors

  • Lifestyle change

  • Upkeep/maintenance difficulty e.g. garden maintenance

  • Negative shocks e.g. widowhood, divorce, health concerns.
     

Now is the time to consider:

  • What are the costs of downsizing?

  • Where will you live?

  • How much do you want to spend on your new home?

  • Do you intend to access capital tied up in your current property?

  • Will downsizing have any impact on your Age pension entitlements?

  • Will you be moving into an Aged Care Facility?
     

Surplus funds available from downsizing your home may enable you to:

  • Payoff any outstanding debt

  • Create a cash reserve

  • Make contributions into superannuation

  • Commence a retirement income stream
     

How can a Financial Adviser help?

Consulting with a financial planner can help your answer the following:

  • How to invest any surplus sale proceeds?

  • How to contribute sale proceeds into superannuation?

  • How the sale may affect your Age pension entitlements?

  • What is the best option if you want to leave the funds to your children as an inheritance?

  • How do aged care facilities calculate fees and charges?

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