With fixed mortgage rates having fallen to all time lows we thought we would write to those of you who are not too far from retirement.

We have big proponents of the variable but the time may well have arrived to have a serious look at ‘GOING SAFE’ for the next five years, and most importantly determine the smartest strategy to follow until retirement arrives.

Those getting the golden handshake soon should be getting the lowest rate mortgage possible with the longest amortization giving you the lowest payment for the longest period of time.   5 year fixed rate money is as low as 3.39% (30 day close), 7 year at 4.49% ,  and 10 year at 4.79% (up to 1 and half per cent below the bank’s posted rates). We have never seen rates this low in our entire career. The spread between variable and (our) fixed rates is so narrow, that now may be THE TIME to go to safety, long term.

Folks, we see too many people who plan too late or don’t plan at all.  During their working lives they sacrifice to pay off their mortgage but don’t make it. Life gets in the way. Having a small mortgage  is good but not at the expense of being cash poor. And so they struggle into retirement.  Once they retire they have fewer options available because their income has dropped. They become equity rich (you can’t eat equity) and house poor, continuing to struggle when they should have ample funds to live the ‘Golden Years’ the way they are supposed to. 

Call us today, to arrange a convenient time to come into our office to discuss you current and future needs and have us help you find the best financial strategy going forward in retirement.

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