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What to Consider When Thinking About Downsizing

What to Consider When Thinking About Downsizing

August 24, 2023

Have you considered downsizing? Although it’s common for people to think that “bigger is better,” it can be worthwhile to consider the pros and cons of downsizing and whether a smaller home can serve you, your lifestyle and your goals.

Potential Advantages of Downsizing

  • Reduced Expenses - A smaller home could mean lower mortgage or rent payments, lower property taxes, and reduced utility bills.
  • Less Cleaning and Maintenance - You may have less to clean, less yard work to do and fewer repairs to make, allowing you to focus on other priorities.
  • More Cash on Hand - If you sell your home and buy a smaller one, you may have cash left over that you can use for other purposes.
  • Different Housing Options – If you decide to downsize, different housing options like a condo or townhome could be available to you.

Potential Disadvantages of Downsizing

  • Space Limitations - Downsizing means less space, which can be a disadvantage if you have a large family or frequently host guests.
  • Emotional Attachment - Your current home may hold sentimental value, making a move emotionally challenging.
  • Moving Costs - Downsizing also comes with moving costs, such as hiring a moving company and closing costs.
  • May Not Save You Money - Added money in your pocket, from downsizing, could lead to additional spending. You may need to make lifestyle adjustments and be conscious of your spending habits to help save money.

The decision to downsize is not always a clear-cut, straightforward decision. A lot depends on your unique situation and goals for your lifestyle in retirement. If you’d like a partner in discussing the potential financial impacts of downsizing your home, let’s schedule some time together.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.