by Evelyn Preston ‘The Money Lady’
“Wisdom comes with age” and “Experience counts!” go the old adages. Even my children tell me I have a good idea once in a while. However, accumulated knowledge may not be enough when dealing with senior financial issues
Question: Conventional advice says it’s best to stay in our homes as long as possible to avoid the heavy costs and taxes of a sale. Do you agree?
Answer: “Financial benefits of downsizing earlier rather than later can make a meaningful difference in extending the life of a nest egg,” says Tom Lauricella of the WSJ. Besides the positive lifestyle changes of a retirement community and sparing children from the huge task of emptying a lifetime trove, financial experts point out the hidden and psychological costs of home maintenance (roofs, landscaping, repairs.) Also consider home-alone isolation vs. built in services, new friends and the comfort of knowing the fixed monthly fees. Factor in the stress and physical factors of moving when older and possibly sicker. After 10% costs, the remaining proceeds and new lower expenses after selling a home can add many thousands to a retiree’s savings.
Submitted with permission of Evelyn Preston and ActiveOver50