New Year New House


Happy New Year! It is the beginning of 2015 and many people will be making the transition into retirement this year. Gearing up for retirement can often mean downsizing to a smaller home. If that is on your list for 2015, then read on for a few things to consider as you transition to a smaller home.

Cost Benefit: Speak with your financial planner (FP) and certified public accountant (CPA). Getting these meetings on the calendar before a final decision is made should be a top priority. Your FP will assist you in revising your retirement plan accordingly. Maybe you will have a profit from the sale to allocate to a brokerage account. Your CPA will work with you to determine the tax implications of the sale or the impact the loss of a mortgage deduction will have.

Emotional Benefit: The benefits of downsizing will likely mean less clutter and lower expenses. However, do not underestimate the impact leaving a family home will have on you as well as other family members. Talking with your children and grandchildren can ease the transition period. Also, before having a tag sale or donating your personal property, consider transitioning those cherished items to family members. Not every family member will be on board with the move. However, you met with your FP and CPA and have the relevant information as to why downsizing makes financial sense.

Now that you have met with the right people, had the important discussions it is time to get moving and find the right new home in the right community to help you enjoy your retirement. A realtor can assist by providing you with insight into the right community that will be a perfect match for the next wonderful phase of your life!

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