Here’s Why You May Never Retire
“If you thought you were going to live until you were 90, figure out what happens if you live until you’re 100.” –John Chevreau
Why You May Never RetireThe easy answer, he says, is that people work longer. Among the 10.6 million Canadians age 55 and up, a record 36% are working or seeking work. The reason is of course if we live longer the chances of us running out of money increases. It made me think how Real Estate investing can play a role here. Let’s say you are 55, how about buying an investment condominium? The purchase price is $200,000, you will need 20% down ($40,000), and this leaves a $160,000 mortgage. Your tenant can pay this off for you over a 25 year period. Looking into the future you are now 80 years old and own an asset you can sell when you need money to live on. Of course there are many variables to consider and your financial planner (if you need a referral let me know) will have additional suggestions on your overall retirement plan.
- Where will the down payment come from?
- How about when you downsize from the large family home to a smaller one, use some the equity in your current home to purchase the condominium.
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