Are you counting on your home to fund your retirement? You’re not alone. A recent survey by Sun Life Financial showed that 24 percent of respondents believed that residential real estate would serve as their primary source of retirement income. But this could be a false hope, and in my own financial planning practice, I have never seen it happen. Here’s why.
You Have to Live Somewhere
Typically, when a retired couple or individual is “downsizing,” they are moving from an older home, one that they may have lived in for 20 to 30 years. This home is definitely worth less than a similar-sized new home.Now the question is, what is this couple or individual moving into next—a smaller home that was built around the same time as their first home, or a smaller home or condo that is of a newer vintage?