9 tips for Downsizing after retirement…
We all dream of the day when we can retire and start a new life filled with the freedom to do what we want, when we want, and where we want. The good news and bad news? With all that freedom comes a lot of choices and decisions.
We also know that even if you’ve been planning for retirement for years, the idea of packing up and moving from a home you’ve lived in for decades can be both daunting and exhilarating. But that’s no reason to stress, especially since that’s the opposite of what retirement is about. In today’s Coffee & Cash, we’re touching on 9 smart tips for planning, downsizing, and relocating.
1. Give yourself plenty of time
There’s no reason to rush yourself into moving immediately after retirement. Big moves are often best made in stages. For instance, if you’re moving to a state with a different climate, visiting for a few months to experience every season is ideal. Finding a fully furnished long-term rental is the best way to experience your dream town, without any of commitment of moving all of your belongings or jumping into a new home without knowing what it’s like year-round.
2. Consider a home equity loan to help the transition between homes
If you’re buying a home for retirement, you can use the equity in your existing home to stage your move without rushing or feeling too much pressure on timing the sale of one home and the purchase of another. By using a home equity loan, you may be able to act more quickly to make an offer when you find a home that was exactly what you wanted in this rapidly moving housing market. You could also potentially borrow against your investments, using the loan as a temporary source of bridge financing. Of course, taking a home equity loan or collateralizing your investment account isn’t the best fit for everyone so make sure to talk with your financial advisor before making any decisions.
3. Hold a family meeting
Adult children and other close family members often play a role in a retiree’s moving process. From getting rid of kids’ stuff and deciding who wants items that will be up for grabs to talking through the timing and plans, it can help to get everyone on board.
4. Think like a project manager
Use spreadsheets to track and share what items are staying or going, who they will be going to, what can be sold or donated, and a rough timeline.
5. Memory boxes
A great way to downsize your stuff, while sharing special memories with loved ones is to create a memory box to gift your children. These can contain any little memories for each stage of life from their first pair of shoes to their graduation gap and gown. Making it their responsibility to go through the bin and take what they wanted is a great way to reduce the burden on you.
6. Start getting rid of stuff early
When you’ve been living in a home for years, it takes a lot of time to clear everything out. Start selling and donating as soon as you can. Selling things on Facebook marketplace, holding a garage sale, donating to your local community center, and even renting a dumpster can help clear your space and your mind.
7. Eat the elephant of clutter one bite at a time
As the saying goes “How do you eat an elephant? One bite at a time.” And getting rid of clutter is no different. Don’t try to clear out years of accumulated stuff all at once. Choose small, discrete areas and projects to tackle in chunks. You may also agree to take some things on the move that you may ultimately sell or give away. For instance, you may have some special custom items that don’t sell in your hometown, but you plan to sell them when you’re settled in your new location.
While clearing the clutter feels great, don’t feel pressured to get rid of the things you really love. The Marie Kondo Method encourages tidying by category – not by location – beginning with clothes, then moving on to books, papers, miscellaneous items, and finally, sentimental items. Keep only those things that speak to the heart and discard items that no longer spark joy.
8. Choose a moving option that works best for you
Full-service movers, rental trucks, and portable containers are just a few options. You’ll have to decide how you’d like to move based on your own abilities and timeline.
9. Stay connected with Zoom
One thing that the pandemic has taught us is that we can stay connected with friends and family, even if they’re thousands of miles away. Video sharing tools like Zoom can keep up connected, share our new adventures, and remind us of our hometown when we need it most.
So, there you have it! 9 tips to help making preparing for a big move in retirement a bit easier. If you have any questions about your finances regarding your big move, we’re happy to help. We help people think through the implications of downsizing all the time, and we would be happy to help you too. You can schedule a free consultation by giving us a call at (518) 406-5624 or booking an appointment directly on our website at www.simmonscapitalgroup.com.
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