Why Baby Boomers Should Think About Downsizing
If you have thought about downsizing then you have probably also felt a little panicked over what you could potentially be giving up. If you are trying to decide if downsizing is a smart decision for you make a list of pros and cons. Here are a few advantages to help get you started.
- Potential to Not Have a Mortgage Payment – Unless you have purchased your home in the past few years, you probably have a fair amount of equity built in. Many baby boomers live in the same home they raised their children in. So, there is a good chance you could end up with no mortgage if you buy a smaller home. Even if you have a small payment, the decrease will come in handy for all that traveling you want to do.
- Lower Taxes and Insurance – You may be pleasantly surprised at how much money you save when you have a smaller footprint. Homeowner’s insurance will be even lower if you buy a condo or home in a gated retirement community.
- Smaller Utility Bills – Keeping a cozy home cool or warm won’t cost a fraction of what you pay in your three- or four-bedroom home now.
- Money to Invest – If you downsize and invest right near the beginning of your retirement, you could have a significant amount of money to take that ultimate vacation you have dreamed of a few years later.
- Move for the Lifestyle You Want – Maybe you want to move to Florida where golf courses are on every corner and open year-round. Perhaps a costal walkable town is your idea of the perfect place to live, or you may want to move to a retirement community where there are plenty of friends and always activities to fill the day with.
- Less Burden – Maintaining a large home is a lot of work. Just think of how much more time and energy you will have when you are not constantly cleaning, mowing a lawn, or shoveling a long driveway.
- Reduced Stress – Everyone hopes they will have enough money when they retire to live a comfortable lifestyle, but many are finding they don’t. By reducing your bills you can put yourself in a position to have significantly more money, making this one less thing you will have to worry about.
You have spent a good portion of your life taking care of others, and you probably have kept that oversized house just so the kids and grandkids could have a place to gather once a year. As a baby boomer, it is time to focus on you. Downsizing is a logical way of relieving a lot of burden so you can enjoy the retirement years you have been looking forward to.