This video demonstrates how to model the downsize or rightsize of a property within the Voyant software. We also review how to direct the inflows from the sale of that property into a new property and or investment account.
Transcript
oday I will be showing you how to model a Right-Size or Downsize event in the Voyant AdviserGo software.
In this plan, you can see that we already have a property entered. This is their main residence, listed with a value of $500,000.
What I’d like to demonstrate is what it would look like if they were to downsize this property at retirement—using the proceeds either to purchase a smaller home or to invest in the market.
We’ll do this by creating a What-If Scenario, using the guided plan creation option called Right-Size Home.
The home we want to right-size is the main residence. I’ll select that here.
Next, I’ll set the event timing. I want this to occur at Naomi’s retirement event, so I’ll select that as the start event.
For the new primary residence, we’ll use an estimated market value of $300,000, and the same for the purchase price. Since this is a future purchase, the software will use the inflation and growth rates to calculate the property’s future value.
Clicking through, we’ll indicate that the new purchase will not be funded by debt or a mortgage—instead, we’ll use the proceeds from the sale of the original house.
Now, let’s review:
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We are right-sizing the main residence at Naomi’s retirement event.
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The new property’s estimated market value is $300,000.
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No debt is added to the plan.
I’ll confirm and keep this scenario.
As you can see in the Right-Size Home What-If Scenario, there is a large inflow of money the year Naomi retires. Part of that inflow is used to purchase the new home.
But what if we want to model the rest of that inflow being invested?
To do that, I’ll return to the Dashboard—still within the Right-Size Home scenario. I’ll go to their General Investment Account, open it, and schedule a transfer.
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The transfer will occur in the year Naomi retires.
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The source will be all surplus available that year.
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I’ll set the timing so it aligns with the Right-Size Home event.
Once that’s done, we can review the results.
In Details → Year View, scroll to the year Naomi retires. On the Investments tab, you’ll see that along with the property downsizing, there is also a large contribution into the General Investment Account. This amount then continues to grow year after year.