3 Things You Should Consider When Downsizing in Your Golden Years

For the most part, seniors see their twilight years as a time of uncertainty and scary changes. However, it’s also a time for new opportunities. Changes can be made less scary and more geared toward improving your lifestyle, while uncertainties can be alleviated with a good game plan. This can be accomplished with downsizing. 

Now, downsizing can be quite an emotional ordeal, especially if you are unprepared. As such, the key to making downsizing easier and less stressful is to break down what seems to be a gargantuan task into the following small-sized components.

Your finances 

Of the many perks of downsizing, the financial benefits are probably the most welcome. As you retire and transition toward a fixed income, you will find that you really don’t want to be saddled by too many bills and expenses. Not only that, but 

you may also want to redirect your income into more worthwhile pursuits like travel and recreation.

 With these in mind, your downsizing efforts should start with an honest assessment of your financial situation and making adjustments accordingly.

Your home 

There’s little doubt that your home demands most of your income, not to mention energy. With utility bills, maintenance costs, property taxes, and other myriad expenses to consider, continuing to live in your current home may turn out to be more trouble than it’s worth.

It’s no wonder, therefore, that many seniors are choosing to sell their homes in favor of downsizing. And with homes in Santee currently selling at a median price of $598,500 this could prove to be a lucrative choice that not only guarantees that you’re well taken care of in your golden years, but that you also get to enjoy them.

 Another option that you should consider when you’re downsizing is to rent out your home. This can also be quite lucrative as it generates earnings that you can rely on to supplement your fixed income in retirement. The downside is life as a landlord can be quite demanding. You have to find and vet tenants, stay on top of maintenance, and make sure that mortgage payments and property dues are up-to-date. There are, of course, ways to make this easier on you, but they invariably translate to additional costs. So with such concerns in mind, renting out your home, although viable, is definitely not an option for everyone. 

Of course, you can always pass on the family home to your children. However, this option also comes with its own risks. In fact, it’s important to do your due diligence before handing over the deed and the keys to a loved one as this very act could lead to a host of tax issues. There are ways around it, though, so make sure that you know all your options before making this decision.

Your possessions

Making the decision to downsize and leave your home in favor of a more cost-effective and senior-accessible one inevitably means parting with the many possessions that you’ve accumulated throughout your lifetime and the memories associated with them. For many seniors, letting go can be the most difficult part, especially on an emotional level, which is why it’s important to see this not as a necessary evil, but as a meaningful step toward what could be the best years of your life.

You can make this process less stressful by not rushing yourself and tackling the task systematically. As a rule of thumb, anything that hasn’t been used in the last year or so can be given away or sold, while heirlooms and mementos can be passed on to family members. Of course, don’t forget to keep the most special ones for yourself to take with you to your new home.

Remember that when you downsize, you are essentially closing a chapter of your life. Yes, there is room for grief, but know that there’s even more room for growth. So take it one step at a time, slowly but surely, and before long, you’ll be enjoying the life that’s waiting for you.

Compliments of Jim Vogel

Image via Unsplash