7 Reasons To Downsize
Dec 04, 2020
Boost your nest egg. Cutting your housing costs is a quick way to increase your retirement savings. "Having less money locked up in your housing frees up more money to invest or just for your lifestyle," says Kathy Hankard, a certified financial planner for Fiscal Fitness in Verona, Wisc. "If you're deciding just by the numbers, it's pretty much a no-brainer to downsize." For example, if you moved from a $300,000 home with a paid-off mortgage into a $150,000 condo, you could add $100,000 or more to your nest egg, after transaction costs.
Lower your cost of living. For retirees who still have a mortgage or pay rent, moving into more compact quarters in your current town or relocating to a low-cost locale can lower one of your biggest monthly expenses. Ideally the smaller space would also cost less to heat, furnish, and maintain. Slimming housing costs will produce far greater results than skipping coffee and clipping coupons. Aim for a town that balances a low cost of living with amenities such as high-quality health care and plenty of fun, affordable activities.
Reduce taxes. Inexpensive housing has the added bonus of smaller property tax bills. "I have clients who have saved a couple of thousand dollars per year because they have moved from an urban area with a high property tax to an area with a lower property tax and that doesn't assess seniors for school taxes," says Micah Porter, a certified financial planner and president of Minerva Planning Group in Atlanta, Ga. Taxes can vary considerably by location. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming have no state income tax. New Hampshire and Tennessee tax dividend and interest income only. "If you anticipate earning income in retirement, being able to forgo that state income tax could save you thousands of dollars as well," says Porter. Five states levy no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Also look for state and local tax breaks specifically for seniors who reach certain ages.
Less upkeep. Ron and Jean Mirabile, both 67, traded in a three-story townhouse with a basement in Cromwell, Conn., for a three-bedroom apartment with a lake view in Port Charlotte, Fla. The couple was looking for a change of scenery and housing that required less upkeep when they retired in 2008. "If something breaks, I call the office and the maintenance man comes and fixes it," says Jean, a former proofreader. Ron, a retired dentist who makes wooden fishing lures as a hobby, no longer needs to travel to fish. "I can take one pole and lure and go out in the backyard and fish for bass," he says. "The best things in Florida are free: The weather, the beach, and the scenery."
Slash utility bills. Cozier quarters may also result in lower heating and cooling expenses and a smaller homeowner's insurance bill. "A smaller space should save you money on utilities," says Porter. Ask for copies of the previous owner or tenant's utility bills to determine approximate monthly expenses.
Increase flexibility. Some retirees go back to renting in retirement. "Renting makes a lot of sense because there is more flexibility," says Hankard. "Most people would rather do other things with their time and money, unless they are really in love with their home." Renters can try out a few retirement locations. Sometimes priorities also shift throughout retirement. For example, immediately upon retirement, you might want to move to the Sunbelt or travel. But after a few years, you might want to move closer to your children and grandchildren.
More amenities. First-time home buyers are often concerned about space for children and living in a good school district. But retirees need to think about whether their home will continue to be convenient as they age. "As you get older those stairs are not going to be your friend," cautions Julie Schatz, a certified financial planner for Investor's Capital Management in Menlo Park, Calif. Seniors may want to consider a single-level home and proximity to family and friends who can help with household tasks. If you have any type of health problem, it is essential to live near a medical facility.
http://money.usnews.com/money/retirement/articles/2010/03/15/21-ways-to-cut-expenses-in-retirement
Take the stress out of downsizing!
Busy lifestyles and often two-income households leave adult children little time to help aging parents with their transition. Other seniors don't have much help of any kind, and are too overwhelmed or physically unable to tackle their move alone. Even when family help is available, emotions can run high, making the process challenging and frustrating for everyone involved.
The good news is, you are not alone! We are here to help.
A Life Transition Service Lancaster
Larry Hess
1280 Plaza Boulevard, Lancaster, Pennsylvania 17601, United States
(717) 468-2520
Other Articles You May Like
Moving Made Easy: Simple Tips for Seniors
Moving to a new home can be scary and stressful, especially for older people. But don't worry! Here are some easy ways to make moving day less scary and more fun.1. Pick the Right HomeFirst, choose a new home that feels good. Think about what you like. Do you want a garden view? Do you need help with cooking? Make sure your new home has what you need to be happy.2. Make ListsWrite down everything you need to do. This helps you remember important things. Start early and take your time. Don't rush!3. Choose Special ThingsWhen you move to a smaller home, you can't take everything. Pick the things that mean the most to you. It's okay to feel sad about leaving some things behind.4. Get Help from MoversHiring people to help you move can make things much easier. They know how to pack and move your stuff safely.5. Use Good BoxesUse boxes that stack well. Plastic boxes with lids are great because they're easy to pack and unpack.6. Say Goodbye to Your Old HomeHave a party to say goodbye to your old home. Take lots of pictures to remember it. This can help you feel better about moving.7. Think Happy ThoughtsMoving can be exciting! Think about all the fun new things you'll do in your new home. You might make new friends or try new activities.8. Pack a Special BagPack a bag with things you'll need right away in your new home. Put in things like:MedicineToothbrush and toothpastePajamasSnacks and waterThis way, you won't have to search through all your boxes on the first night.9. Make a Moving Day PlanPlan out your moving day. Know when you'll leave and when you should arrive at your new home. Don't forget to plan for breaks along the way.Remember, moving can be a big change, but it can also be the start of a great new adventure in your life!
Moving to Senior Living: What to Pack and What to Leave Behind
When moving to a senior living community, it's important to know what to bring and what to leave behind. This guide will help you pack smart for your new home.Before You Start PackingVisit Your New Home: Take a look at how big your new space is.Talk to Residents: Ask people who already live there about what they brought and what they wish they had.Check with Staff: Find out what furniture and items the community provides and which items are not allowed.Involve Family: Let your family pick items they might want to keep, especially heirlooms.What to BringClothes and Personal ItemsEveryday clothesToiletries like toothbrush and shampooMedicationsMobility aids, like walkers or canesSpecial ItemsPhotos and artwork that you loveSmall mementos that make you feel at homeFurniture (if there's room)A comfortable chairA small table or nightstandA bed (if not provided)Lamps for lightingOther Important ThingsBedding and blanketsKitchen items if you have a small kitchen areaTV or radio (if allowed)Pet supplies if pets are permittedWhat Not to BringExpensive jewelry or valuable items that could be lost or damagedClothes you no longer wearLarge furniture pieces that won't fitBig appliances that the community providesHeaters or air conditioners that may not be allowedLarge rugs that could be a tripping hazardRemember, your new home will be smaller, so you'll need to choose carefully what to bring. It's perfectly okay to ask for help from family or friends if packing feels overwhelming.
A Senior's Guide To A Stress-Free Relocation
Moving can be a big challenge, especially for seniors. But don't worry! With some planning and help, you can make your move smooth and easy. Let's look at some simple ways to make your summer move a success.Plan AheadStart by making a list of everything you need to do. Write down important dates and tasks. This will help you stay organized and not forget anything. Ask family or friends to help you make this list if you need to.Sort Through Your StuffBefore you start packing, go through your things. Decide what you want to keep, give away, or throw out. This is a great chance to make your new home less cluttered. Think about what will fit in your new place and what's really important to you.Stay Cool and SafeMoving in hot weather can be tough. Here are some tips to stay safe:Start early in the morning when it's coolerDrink lots of waterTake breaks in the shadeWear light, comfy clothes and a hatUse sunscreenAsk for help with heavy liftingPack SmartWhen you're ready to pack, follow these tips:Use strong boxesLabel each box clearlyPack a special box with things you'll need right away in your new homeIf packing is hard for you, ask for help or hire someone to do itTake Care of Special ItemsSome things need extra care when moving, depending on the weather. Electronics, art, and musical instruments might need to be moved in a cool truck. If you have things like this, ask for advice on how to move them safely.Get HelpMoving can be a lot of work. It's okay to ask for help. Family, friends, or professional movers can make your move much easier. They can help with packing, lifting heavy things, and setting up your new home.Stay PositiveRemember, moving to a new home can be exciting! Think about the good things about your new place. Maybe you'll be closer to family or in a nicer neighborhood. Keeping a positive attitude can make the whole process feel better.Final TipsChange your address with the post officeSet up utilities in your new home before you movePack a bag with clothes and toiletries for your first few daysTake breaks and rest when you need toMoving doesn't have to be hard. With these tips and some help, you can have a great move to your new home. Remember to take your time, stay cool, and ask for help when you need it. Happy moving!