“Should I Stay, or Should I Go?” Not just a great song but also an important financial and lifestyle question. A question faced by many, but most especially senior homeowners who are looking to find a sustainable retirement income and lifestyle plan. They are thinking about are:
People have a hard time getting this conversation going. This discussion begins with if you view your home an asset. Typically, we don’t view a primary home as an asset, however, when it comes to retirement income planning and distribution, and deciding how to create a sustainable future, your house and the equity in the house does become a very important asset to consider. One of the challenges, is where does the house fit into this traditional investment model when we are looking for rate of return, safety, and liquidity?
The big question is WHY? What is important to you? Is this more of a financial decision? is it a lifestyle decision? People across the broad spectrum of income and assets are struggling with this conversation. Consider these Lifestyle issues:
What are the financial considerations to think about when dealing with real estate and taxes? Some financial considerations are:
Consider the lifestyle you want to lead? Do you want to live in a big beautiful home? Do you want to live on a golf course? Desert community? Do you want to live in assisted living or shared living environment? What are all the options? This is tough to think about, when you are not at that stage yet, however, the earlier you start considering it and having the conversation, the greater the likelihood of a great outcome!
Experts recommend thinking about four key considerations when it comes to housing:
There are lots of choices when it comes to housing for older adults:
Who do you need to talk to? Is it your spouse or your partner? Is it family? Is it your kids? What other advisors need to be involved? The bottom line is you must start somewhere, and it probably it is with your partner, the person you spend the most time with. Then bring the family and your kids into the conversation. It does not matter if you are affluent or living paycheck to paycheck. Just start the conversation.
We see too many people waiting and losing options over time. In California, we are very fortunate because we have great home values and ways to tap equity to be able to create sustainable plans.
You will be surprised when you start a conversation to learn that others really care about you and want you to live a great life. At the end of the day, we want you to learn, study, and act. Know that there are no right or wrong answers – there is just a decision to Act!
Check out our other Lessons on creating sustainable planning through our Borrow Smart Conversation and Process.
Retirement Income Planning Summarized – Should I Stay Or Should I Go?
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