Should You Downsize Your House During Retirement?


Should You Downsize Your House During Retirement?

This is another frequently asked question in retirement planning, and it should be. This is one of the best moves that you can make during retirement. First of all, you rarely need the same size home, or yard, that you needed when you were raising a family. Therefore, having a larger house and yard can actually become a burden, and at the very least you are paying a higher-than-needed monthly payment for an asset that you are not utilizing to its fullest. There are many upsides to downsizing. First, if you have equity in your home, you will often walk away from a downsizing effort with a bundle of cash, so now you have a right-sized house and some cash to help you enjoy your retirement. Second, you will probably have a much lower monthly payment, this will allow your cash flow to be better, again allowing you to do more things or at least have more flexibility with your finances during retirement. Moving into a condo can help lower your monthly payment, reduce your around-the-house duties, increase your cash-on-hand, and increase your cash flow. You can think about all of these things, along with the fun ways that you can use the money to spoil your Grandchildren, as you walk down your slightly shorter snow-covered driveway as you go to get your mail each morning.

Retirement Junkie is a website that the Hagopian Institute put together as a source for free information to help people prepare for retirement.  Please visit retirementjunkie.com, and follow MrEmergingMedia on Twitter for more retirement tips, along with other fun offerings from Todd Hagopian and the Hagopian Institute.

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About Todd Hagopian (@ToddHagopian)

Todd Hagopian received his BA from Eastern Michigan University with a major in Political Science. After graduation, he worked as a Financial Advisor and a Bank Manager before returning to school. He attended Michigan State University, where he completed an MBA with a double-major in Finance and Marketing. Todd is now a Senior Product Development Manager for a Fortune 500 company. He frequently writes about business issues, social media strategy, and political issues that he finds important. Enjoy the blog!

Posted on December 5, 2011, in Investing and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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