Ask the Money Expert, Patrick Latham from Envision Financial, A Division of First West Credit Union

I’m thinking about downsizing and I’d like to increase my cash flow. Any ideas on this?

I’m thinking about downsizing and I’d like to increase my cash flow. Any ideas on this?

Many of us are looking at changing our living arrangements whether that’s due to kids leaving the home, or the maintenance required for upkeep. Sometimes, we can make arrangements to prolong the time you can stay in your current home, but usually at some point it’s necessary to look at something different, if only to free up some of the equity you’ve built up in the property. So, if one does sell their home and decides to buy something smaller, or decides to rent, there’s often some amount of money left over which one could use to generate some extra cash flow.

There are many options to consider including the risk you are able and comfortable to take on, the amount you have to invest, the amount you would like to have to supplement your cash flow each month or year, the importance of leaving a legacy or not and how long you think you’ll need the money to last. Once all these are taken into account, you can get down to the actual products that you can use to achieve your objectives. If it seems a bit much, make sure to find a qualified advisor to help.