In her late 70s, Maureen was living in her own home but was unhappy rattling around in a big house and had begun to find cleaning and maintenance a real problem. It was starting to get her down. Maureen is an independent woman and didn’t want to bog the family down in the decision-making. She asked Stephen, her financial adviser, for his recommendation. Stephen took a look at her monthly budgeting and could see she was beginning to struggle with the financial commitments of running a big house.
Maureen was at a crossroads; the longer she stayed in the family home the more expensive it would become, and her lack of real income meant it would start eating into her capital. Her government superannuation was not enough to both live on, and let her keep the house.
Stephen proposed looking at an apartment in a nearby retirement complex and worked through her finances to make sure she could both afford the new home and the weekly complex fees. He arranged a meeting between Maureen and the lawyer who administered her family trust, and then introduced a friendly real estate agent to help her sell the big house. With the money left over from the sale Stephen found an income-generating investment that would help top up her monthly pension.
Maureen has been in her new home for over five years now, and is as happy as Larry. It could have easily been a less happy story. Milestones like retirement can introduce you to a whole new life free of the hassles of running a big house and with plenty of time for friends and hobbies. But you need to seek the right advice. When the decision-making is done well, the result is a seamless transition into a much, much happier new lifestyle.