Posted by Valley Financial Group & Billy Wolfe Jr.
It’s a very difficult thing to transform a house into a home, so difficult in fact that perhaps the only thing harder is saying goodbye to one. For most you have lived in the same house, for years, maybe even decades. Maybe it was your first house you moved into as newlyweds. Maybe you've watched your children learn to walk and talk in the same living room where you sat for countless family movie nights. Maybe you've left your shoes by the same door every single day after work, knowing that you could finally relax with those you love most. Regardless of the specifics, your home is where thousands of priceless memories are made, and when your youngest child is ready to move out on their own, saying your farewells to a house full of cherished times will be the second hardest goodbye you'll be making. Although the sentimental value of your home can never be calculated, it makes obvious fiscal sense to downsize your place of living when you have an empty nest. No, it’s not easy, but for most of us it’s a financial necessity that simply can't be avoided. So if you're having trouble letting go of that special place you call home here are three reasons why it makes sense to downsize.
1) Less space = Less work
Do you really want to mow the lawn, paint the house, clean the cutter, etc. As you age will you be able to keep up with the maintenance? If not you will have to pay someone else to do the up keep. By moving to a smaller home, especially if it’s a condominium or apartment you will be spared most of those responsibilities.
2) Economically sensible
A larger home means higher property taxes, home owners insurance, utilities and property maintenance. A smaller dwelling will obviously cost you less, and therefore help keep that retirement fund as full as possible so that you will not worry when you finally hang up those working shoes.
3) Peace of mind
I think we can all agree that retirement is all about eliminating stress, at least majority of it, from our lives, and with less taxing mortgage payments and a more easily navigable house for you as you continue to age, both financial and physical peace of mind is at least being progressively worked towards when downsizing your home.