Planning Article
October 2024 – By Shelley Lein CFP®
People downsize their homes and belongings for many reasons. For some, the reason is financial, wanting to ensure their retirement nest egg lasts. For others, they have dreamed of living a certain lifestyle and when their working years end, they are finally free to make the change. Others are forced to downsize because of circumstances.
Radical downsizing can free up time and money to embrace a different lifestyle. For some, that is traveling the country in a home on wheels. Retirement always offered the appeal of traveling and exploring the US with a motorhome. Now, even people working remotely have decided to sell their home and most of their belongings for the ability to travel in a Sprinter van.
For many others, it could mean moving to a vacation home or just downsizing from that 5-bedroom home to a condo or town home that has less maintenance. Even a move to a different location will make you look at every item you have and consider – is it valuable, is it sentimental, irreplaceable? Do I need or want it? You can hire an organizer, move manager or relocation specialist that can provide emotional and logistical support to assist with this sometimes overwhelming process.
Even if you plan to age in place, your children and family members will appreciate efforts to downsize your possessions. Planning ahead and making changes to your home can not only make this possible but sorting through belongings can reduce stress for you and your family later if a move is needed.
Lastly and sadly, there is forced downsizing. Most of us know someone who has been affected by a fire, hurricane or flooding. When you lose your home and all of your possessions, it requires you to reassess your lifstyle, and what is important to you. For a friend who was a Colorado fire victim, it took time to develop their new plan after a total loss. After several years, they say their focus has turned away from “stuff” to enjoying experiences. The possessions they missed most were the years of pictures that were waiting to be scanned.
What do you dream about for your best retirement life? Planning for the future often includes downsizing in some form. Some of you may not want to wait until your golden years but figure out how to pursue your dream today.
Investment advice offered through HighPoint Advisor Group, LLC, a registered investment advisor.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendation for any individual. Although general strategies and / or opinions are revealed, this post is not intended to, nor does it represent or reflect, transactions or activity specific to any one account. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Vantage Financial Partners Limited is not a tax advisor. Please consult a tax professional for any specific questions regarding your tax situation.