People often downsize in preparation for their The goal could be to save money on property taxes, home maintenance, travel, luxury, hobbies, and plenty of other expenses. Or it could be to simplify their lifestyles and free up some time. If you’re considering downsizing, take some time before getting started.
Otherwise, you might end up getting rid of something you’ll later regret. One of the first things that comes to mind when you hear the word “downsizing” is probably selling your home for a smaller one. A smaller home comes with lower expenses — particularly in property taxes and insurance — and less maintenance and cleaning.
But you shouldn’t necessarily make your decision based on cost alone. Other factors can affect your quality of life during retirement. “This may sound obvious, but the biggest regret I hear about clients who downsize is the lack of space,” said Bob Peterson, senior wealth advisor at .
“This can pop up in several ways...
Lack of your own space/privacy within your own home, lack of space for hobbies/personal projects, and loss of functionality (i.e., going from having a separate home office to the new home office/spare bedroom/storage room/craft room!).
” Before you get rid of your home, make sure the new place still has what you want and need. Earning passive income doesn't need to be difficult. A lot of retirees will get rid of sentimental items like family heirlooms or other meaningful belongings to declutter.
It’s not necessa.