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.
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