- BY GATEWAY INSURANCE
- MAY 16, 2019
Congratulations – you’ve reached a point in your life where the heavy lifting of child rearing, career chasing, ladder climbing, and “accumulation phase” have peaked and you’re ready to steadily slide into your glorious, golden years of retirement. Naturally, many people think that retiring and downsizing must be synonymous. Sure, there are many benefits of downsizing in retirement, but there are also some common pitfalls to be aware of. We’ve compiled a list of do’s and don’ts so you can successfully navigate downsizing in retirement.
1. Focus on your “must haves.” Set your non-negotiables whether that is wanting to be near a golf course or grandkids, having an attached garage or gourmet kitchen, handicap accessible doors and hallways, and main-level living, etc. Knowing what you want (and don’t want) will narrow your options down quickly.
2. Have a budget. Talk with your financial advisor about your plans. Map out your monthly budget and be sure to make considerations for HOA fees, rising healthcare costs, leisure activities, transportation costs, insurance, and other important budgetary line items that can affect your overall spending in retirement.
3. Try it before you “buy it.” You don’t have to make a final decision immediately. There are many alternatives to simply selling and moving because you feel like you have to.
- Find a rental comparable to what you ultimately see yourself owning.
- Secure a “long-term” Airbnb or VRBO to test drive your downsizing plans.
- Rent a storage unit for the excess furniture and possessions you are considering eliminating. If you can live without them for 4-6 weeks, chances are you are ready to part with them permanently.
1.Set unrealistic expectations. Just because you find a smaller space doesn’t mean it will save you money. Similarly, don’t expect the sale of your property to generate unrealistic profits. Find a trusted realtor to help you understand the process start to finish.
2. Do it alone. Cleaning, decluttering, organizing, packing, and unpacking are strenuous jobs. It can also be emotionally trying leaving a home you’ve created lasting memories in, and parting with sentimental items you’ve accumulated. Seek help. Whether it is hiring a professional packing and moving company, or recruiting your friends and family, secure a support system before you begin the journey of downsizing.
3. Wait until it is too late. Timing is everything. Waiting until you’re forced to leave your home could have severe consequences on your emotional and financial well-being. With the proper advanced planning, you stay in control of your satisfaction and happiness rather than leaving it to chance.
Are you ready to start planning your downsizing efforts? Gateway Insurance Group would be glad to partner with you. Give us a call at 858-428-3929 or visit us at www.gatewayig.com/nexthome
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Gateway Financial Advisors, Inc., and Cambridge Investment Research, Inc. are not affiliated.