![]() ![]() There aren’t enough vehicles to satisfy demand from buyers, which means long waiting lists and high prices. Shortages and supply chain glitches have resulted in a shortage of new vehicles for dealers to sell. Nobody can be happy with what’s happening in the auto industry these days. Rob’s personal finance reading list Now is a terrible time to buy a new vehicle Open this photo in gallery:Īre you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here. Home ownership can be a big part of your overall personal financial plan. This is the period of time when you’ll draw on money in your tax-free savings account, registered retirement savings plan and, if you’re fortunate, a company pension. But you might spend 20 or 25 years in retirement until that point. Home equity can set you up for the latter stages of retirement – you could use a HELOC or reverse mortgage to pay for home care or sell your home and use the proceeds to cover the cost of a retirement or long-term care home. Downsizing is another way to unlock home equity, but you have to move somewhere substantially cheaper and not spend a lot of money fixing it up. Here are the flaws in this reasoning: The easiest ways to access equity in a home is through a home equity line of credit or a reverse mortgage, both of which carry hefty interest rates right now. In retirement, you just have to tap into all the home equity you’ve acquired. Homes can be relied upon to rise in value over the years, so this burden seems worthwhile. At their age, most of their financial energy is sucked up by their houses. It’s easy to see why Gen Z and millennials might see their house as a retirement plan. Among people aged 18 to 34, 56 per cent strongly or somewhat agreed that selling their house would take care of their retirement. This idea seems far more entrenched among younger people. Overall, 38 per cent of survey participants somewhat or strongly agreed with the idea that selling their home would set them up for retirement. The extent to which Canadians believe their home will pay for retirement was documented in a recent retirement survey commissioned by the Healthcare of Ontario Pension Plan, or HOOPP. For that, you need your own savings or a pension to layer on top of the Canada Pension Plan and Old Age Security. ![]() Home ownership has many virtues from a financial point of view, but it doesn’t take care of your retirement.
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