Are you planning to convert assets to income?

Your retirement income is likely to come from a number of sources, such as your investments and any pension plans you may be entitled to. Depending on your individual needs, it may also come in part from converting large assets that you own to income.

These assets might include your home, perhaps a business or rental property, or personal assets such as a vacation property, boat, or car.

Liquidating assets

Once you have determined that you will need to liquidate some of your assets to fund your retirement, it's best to take a strategic approach to draw upon your assets. You can develop a plan of action based on the answers to these questions:

• How much extra income will you need?
• What will you be selling, and when?
• Would it be better to liquidate all at once or over several years?
• How will you invest the proceeds?
• What will be the impact on your family and potential heirs?

A realistic plan, created with professional advice, will ensure that you avoid a "fire-sale" situation, in which you are forced to sell assets below market prices.

Don't forget taxes

Keep tax implications in mind, too. Any capital gain on your principal residence is likely to be tax-free, courtesy of the principal residence deduction. Qualifying shares of small business corporations may be eligible for, an $800000 capital gains exemption. The sale of other assets, however, such as a cottage or rental property, may result in a taxable capital gain.

Keeping the family business

If you're planning to transfer or sell your business to family members, you will want to make sure you get the best value for your business and can fulfill your estate planning wishes.

No matter what your situation, professional advice can help you prepare a plan for the orderly liquidation of appropriate assets.

Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk.

Capitalstars is a SEBI registered investment advisor. 

Schedule a call with Capitalstars investment consultant or drop a mail atbackoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927.

We will be happy to help you plan your retirement. ☺

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