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BMO Retirement Tips of the Day: Do Your Research Before Retiring Abroad & Consider the Implications Before Downsizing the Family Home

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.

Tip Number 29:

Do Your Research Before Retiring Abroad

Vacationing abroad and living abroad are two very different things. Before you make this a permanent part of your retirement plans, consider:

  • Which is the better option for you: a permanent move or temporary move (e.g. snow birding)?
  • Living in a foreign country is different from vacationing. Factors such food costs, housing options, language barriers, health care, cultural isolation and having pets should be taken into consideration.
  • Ensure you know the impact of non-residency on retirement income and savings (i.e. RRSP/RRIF, CPP and OAS).
  • Ensure you know the Tax and estate implications.

Tip Number 30:

Consider the Implications Before Downsizing From the Family Home

Whether your home is a retirement asset or a personal use asset, it is one of the largest items on your personal net worth statement. There are many reasons for considering downsizing your home: you no longer need the space after the children have moved out; you may want to move closer to family; or you may want to move into a condominium to escape more arduous chores such as grass cutting and snow removal. Before you make the decision to downsize, consider the following:

  • Decide whether you are ready to move and when you would move.
  • Have your home appraised to determine the potential proceeds from a sale.
  • Start looking for opportunities to buy a smaller home. Estimate how much you can save in reduced housing costs, and how much money you should set aside.
  • Research possible additions to ease life in your current home such as an elevator, or research locations of active adult retirement communities.

For more information on retirement: www.bmo.com/retirement

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