LIFE LETTER MATURE
The art of downsizing
As many approach or enter retirement, there is often a reluctance to make a change to their residence. There are even schemes that capitalize on this reluctance called Reverse Mortgages. They promise that you can stay in your home and access all the cash you want to make ends meet, go on your dream vacation or help family members. This is simply a way to take advantage of a desire to maintain a possibly unrealistic lifestyle.
There are a number of reasons to make downsizing an important part of a retirement plan. They include:
Reduce Expenses - This could be a way for some to retire earlier as there will be less drain on retirement income. By reducing expenses, it could also free up money to do some of those things on your "bucket list."
Simplify Lifestyle - The more things you have, the more time and money it takes to manage them. Thinking further ahead, a simpler lifestyle will make it easier for those you leave behind to manage your affairs when you become sick or die.
Supplement Income - Some of the capital you receive from the sale of your home can be put into income producing investments.
Change Location - Downsizing could provide the opportunity to move closer to family or to a place that is better for certain health issues.
Lifestyles are usually built over several decades. These lifestyles are often based on earned income levels that may not be attainable in retirement. A few of the steps you can take to downsize are:
Experience of Others - Talk with those you know who have downsized already. They can probably give you valuable insights and help you avoid some mistakes.
Reduce Possessions - Do all those "things" really contribute to your happiness? Decide what's truly important to you and dispose of the rest in a garage sale, through classified ads or donate to charities.
Identify Your Needs - Some of us may have already experienced a downsizing event for parents or other family members. Use that experience to determine what your own needs really are. It could be a smaller house, a townhome, an apartment condominium, a move to the cottage or even a rental. As the song says, we can't always get what we want.
Prepare a Downsizing Plan - because itís the responsible thing to do! Call today!
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