Owning a home is a great investment but we all should have other investments ideally inside a Registered Retirement Savings Plan (RRSP), says Ian Calvert vice-president and principal at HighView Financial Group.

By Rosa SabaBusiness Reporter

Mon., Aug. 23, 20211 min. read

Article was updated 4 hrs ago

If you’re a homeowner planning for retirement, you may be hoping to cash in on your house to support yourself in your golden years. But is that a wise move?

Ian Calvert, vice-president and principal at HighView Financial Group, says real estate is the largest asset most Canadians own and it has turned out to be a great investment over the years.

He says downsizing to a smaller house or a house in a less expensive area can indeed free up funds for retirement — but you shouldn’t rely on real estate 100 per cent. To give yourself some flexibility, Calvert says you should have other investments, ideally inside a Registered Retirement Savings Plan (RRSP).

Adam Fisch, an advice-only financial planner at Stewart and Kett Financial Advisors, agrees it’s a huge risk to have a large percentage of your retirement funds tied up in one asset. The market could crash just as you close in on retirement.

As well, you still need somewhere to live in retirement, and many people find that as they get older, they’re not so keen to sell or move.

He advises a retirement plan that doesn’t rely on cashing in on your principal home — you could always sell it as a backup if things go wrong.

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