As you approach retirement, the idea of downsizing your home may appeal.  Reasons to move into a smaller residence often include an empty nest with smaller space requirements, the desire for less maintenance or to free up cash so you can tick off a few bucket list items, add to your retirement fund or make other investments.  Before you act, it is important to do your research and look at the pros and cons, considering your unique circumstances.

The security of owning your home outright is a goal most of our clients share. Paying off your mortgage can free up cash for travel, building retirement savings and other long-term plans. If you have paid down your home loan, it is a great opportunity for wealth creation. We spoke to Adviser, Paul Korst about his thoughts on maximising the surplus cash flow once your mortgage is paid.

Having a financial plan for when you’re no longer here is one of the most valuable things you can do for your loved ones. Grief can be overwhelming. Having a plan in place can save stress and confusion; and minimise the likelihood of disputes. Your parting gift of financial clarity in a difficult time will be gratefully received by those left behind. There are some simple steps you can take to ensure your finances are in order before you die.

Creating a ‘giving while you’re living’ strategy is a great idea if you like the idea of helping your family out now. Rather than leaving all your money in your Will, this allows you to support your children and grandchildren with their current needs. Sharing your financial legacy whilst living is different to traditional estate planning and provides you the emotional benefits of witnessing the impact of your generosity.

Significant life changes may impact your long-term financial goals and priorities. For example, if you have had a child, you may need to save money for education, or budget for one parent to be earning less for a while. If you have experienced a divorce you may need to adjust your retirement plans. There are many situations that require a review of your finances. When circumstances change you need to ensure your financial plan is in alignment with your new reality.