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Finance 9. Think (carefully) about a reverse mortgage If you’ve seen the ads on late-night television, you’d think that all you need to do to boost retirement income is to take out a reverse mortgage on your home. It certainly sounds like a good deal: if you own your home outright (as many retirees do), you can borrow a large sum against its current value and you don’t have to pay a thing until you (or your heirs) sell. What’s not to like? As always, the reality can be a little more complicated. True, a reverse mortgage can be an excellent way to access capital that would otherwise be “locked in” to your home, without having to sell. For those who have seen their homes appreciate astronomically in value (think Toronto and Vancouver), these kinds of loans can make a lot of sense. But there are downsides. Even though you don’t have tomake any payments, interest still accrues on your loan every month – and typically at higher rates than a conventional loan. Closing costs and other fees can also be much higher. And, of course, such a loan will put a big dent in your ability to pass on assets to your children. That’s not a major priority for some retirees. For others, it’s an important consideration. Before you make any decision about reverse mortgages, make sure to review your options thoroughly with a disinterested advisor – someone who’s not earning a commission by selling you a reverse mortgage. Do your research with a critical eye and don’t be afraid to ask hard questions about costs and repayment requirements. Above all, resist the temptation to take the huge lump sum of cash without thoroughly understanding what you’re getting into. 10. Downsize Now that the kids have moved out, the mortgage is gone (or at least, mostly gone) and mowing the lawn seems a lot less appealing than it used to be, ask yourself: do you really need that big old house? If not, then downsizing to a smaller home can be an excellent way to free up income. A smaller home means less money spent on property tax and utility bills and (most of the time) less spent on upkeep and maintenance too. If you can couple your downsizing with a move to a more affordable city, you could end up with a lot more cash at the end of the month. Downsizing can also be an excellent strategy for those looking to build an income portfolio. Selling the family home and buying a condo or townhome can give you an immediate injection of funds to bulk up your savings. For those who have owned their home for several decades in cities that have seen a dramatic appreciation of housing prices – we’re looking at you, Torontonians and Vancouverites – this multimillion-dollar windfall can provide you with income well into your golden years. All that said, downsizing is a big decision… one with a number of important financial and lifestyle implications. It’s also a very personal decision, one that requires some deep thinking about how (and where) you envision your retirement. While it’s certainly not something to consider lightly, it can make a lot of sense for some. 11. Start a side hustle When some people hang up their work boots, they’re looking to hang them up for good. Nothing wrong with that. But for others, retirement is just the start of the next chapter of their professional life. Being beholden to no one but themselves gives them an opportunity to pursue a passion or an interest in a field completely unrelated to what they did during their 9-5 years. Part-time work has been around since, well, since the dawn of work. What’s changed, however, is the ease with which you can create your own part-time job. With the advent of low-cost websites and online marketplaces such as craigslist, ebay, etsy.com and others, it’s never been easier for snowbirds to start a “side hustle” that allows them to be their own boss while still keeping the focus primarily on their golf game, or their fishing habit, or touring the world, or visiting family, or whatever else they want to do in retirement. If you have professional services to sell, this could be an ideal time to set up as a consultant, professional coach or part-time instructor at the local college. Good with tools? Why not pick up a small contract to build a back deck, or fix a motorcycle, or landscape a front yard? And if you’ve got a hobby – jewellery-making, quilting, making homemade jam, whatever – there are plenty of snowbirds making money by selling their wares online. Sure, such gigs take a little more effort than simply showing up for a shift at the local department store or coffee shop. But the ability to call your own shots (and reap your own rewards) can be an intoxicating opportunity for some. 12. Talk to a professional Finally, if you’re concerned about your retirement income, often the best thing to do is to seek out advice and guidance from a qualified professional – a financial planner or wealth advisor who has a broad knowledge of financial planning strategies for retirees. Working together, you and your advisor can run through a number of income-boosting strategies and “what if ” scenarios that can help you determine what you can do to ensure that your golden years live up to their name. CSANews | SUMMER 2018 | 33

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