As the years go by, some of us may feel that a two- or three-bedroom home is too big or too expensive to maintain. However, there are many aspects to downsizing that we may not be able to see on our own.
Today, Margaret is joined by financial experts Pam Krueger and Beth Greulich to help us determine if downsizing really is our best option.
Some people over 60 may find themselves having space that they think they do not need or find too much of a hassle to maintain. However, there are many factors to consider when you’re making such a big change.
Some of us have lived in big homes for a long time. We don’t really think about having neighbors that are too close and too loud and the other aspects of living in shared spaces.
We may have children, grandchildren, or other family members who would want to come home and stay for the holidays.
This means that relatives would need to stay at a hotel. If they come to visit often, it may become more expensive in the long run.
Smaller is not always cheaper.
Some states freeze property taxes for seniors, who end up surprised that taxes are much higher than what they are used to once they move.
For this kind of decision, it helps a lot to have someone do the numbers for us to check whether downsizing is the right step.
Downsizing is not always the answer – you need to consider your needs and “rightsize.” Consider if moving really is the best step for you, both financially and emotionally.
Some people move houses to avoid maintenance costs but pay a hefty amount for capital gains taxes and wind up losing more.
Before committing to moving, do your homework first. You know you’re on the right path if you’ve done more thinking than moving.
Not a lot of people talk about this, but the emotional aspect of moving is very important.
Figure out what’s important to you. Take a walk around your home and look through the physical objects that hold beloved memories gathered through the years.
It is very important that you feel comfortable with your decision.
A financial advisor can help you check your numbers and determine what step you should take towards financial comfort in retirement.
Most people think financial advisors are only for investing; they don’t realize that a financial advisor can help them with every aspect of their life.
When choosing to trust a financial advisor, make sure to ask the right questions to know if they are the right fit for your situation. Tools like Wealthramp can help match you with a financial advisor who specializes in what you need.
Have you thought about downsizing and decided that rightsizing is the better route for you? What made you change your mind? Let us know in the comments below!
Tags Downsizing Your Life