The decision to downsize can be either personal or financial. Consider the pros and cons of downsizing to see what's the best option for your situation.
The leaves are changing color, the kids are back in school and for some parents who have sent their last child off to college, their house is suddenly a much quieter place. While these baby boomers may still be getting used to the empty nest, it brings with it new possibilities.
As the home empties – either after children move out or a spouse passes away – the idea of downsizing from a traditional home to a smaller house or senior living community appeals to many boomers.
The decision to downsize can be either personal or financial. According to research by TD Ameritrade, in order to boost retirement savings, 50 percent of boomer parents are willing to live a simpler lifestyle. In addition, a quarter said they would live in a smaller house.
When deciding whether to downsize, here are a few things to consider:
Consider the emotional and potential unknown costs of downsizing
The following checklist can help individuals evaluate whether downsizing makes financial sense:
A home carries many memories and milestones for the entire family. While downsizing is a big decision, it is just one of the many considerations boomers may be faced with as they enter this new chapter in life.
For those still in the workforce this is a great time think about ramping up workplace retirement savings or sitting down with a financial planning professional to create or revise retirement income plans. Make sure to clarify the required minimum distributions and how the savings will be drawn down. An empty nest is also a great reminder to button up any estate plans with an attorney or tax advisor.
With retirement on the horizon, it is important to do everything possible to keep personal goals in sight. Luckily, free online resources and retirement checklists are available to help navigate this new adventure.
This article was originally published on The Huffington Post.
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2021 Charles Schwab & Co. Inc. All rights reserved.