Have you been counting on your Calgary home to be your retirement nest egg? If so, here are a few things to consider. Recently the Bank of Montréal issued a report offering financial advice for people that are saving up for their retirement. This report contains a few interesting nuggets of information that you should know about.First of all, owning your own home is part of an overall financial plan that should be incorporated into your retirement goals. It should not, however, be the only source of retirement funding. According to Laura Parsons, a mortgage expert with the bank, 41% of Canadians consider their home equity to be their sole retirement supplement.
Baby boomers especially are putting a lot of weight on the equity of their home and this could later cause a problem. As the baby boomers start to age and consider downsizing, there aren't as many people available to purchase all of these baby boomer homes.
In Calgary, the real estate market is doing extremely well when compared to the rest of the country. While it isn't such a problem here in the city it can be in other parts of Canada. There is a lot of migration here to Calgary, which makes up for the lack of people that can purchase all of these homes owned by the baby boomers. Other parts of Canada aren't as fortunate, however, and aren't seeing the intense migration and prosperity that Calgary is experiencing.
In any case, it's always a good idea to diversify as much as possible when you're looking at your retirement financial options. Owning your own home is definitely an important piece of the pie but it shouldn't be considered as the only one.
Take a good look at all of your options with a financial planner that you can trust and start putting your eggs into different baskets. This way, you'll be covered when it's time to liquidate your assets and move forward towards your retirement goals.