Preparing for the new adventure of retirement can be both exciting and overwhelming. As you approach retirement it’s common to make decisions on what you want to do in the next phase of your life. Whether you plan to age in place, move to a smaller home, or travel the world, there’s one common denominator; you should prepare for whatever you want to do.
One of the ways to prepare for retirement is rightsizing or downsizing personal items through liquidation. According to financial wellness experts at GreenPath.com, assets can include large items or small personal items like jewelry and antiques.
Reasons to Consider Asset Liquidation
- Asset liquidation can help you clear clutter from your home to age in place safely.
- If you are moving to a smaller condo, home, apartment, or senior community, you can liquidate assets to get your home ready to sell.
- Liquidating assets allows you to reduce the items you own to live comfortably in your new space without the hassle of unnecessary or unwanted items.
- Liquidate assets to give yourself extra savings or offset costs during retirement.
- Planning ahead to liquidate assets can help your transition to something new be more successful.
5 Questions to Help You Decide Your Next Move
According to a survey by TD Ameritrade, “42% of Americans say they plan to downsize in retirement.” Ask yourself these questions to help you decide what’s next:
1. Does my existing home meet my needs?
It is important to consider what you need in a new space. This question will help you hone in on what your needs are as well as compile a list of what needs have not been met.
2. How much does it cost to upsize, downsize or rightsize?
At the very core, you want to assess how much you can afford and still enjoy a great quality of life. Research the expenses associated with the size of home you want to move too as well as the cost of the move.
3. Would a new community better suit my lifestyle or life stage?
Your lifestyle is a great determining factor for where you plan to live and where you decide to settle for no matter the stage of your life. Choose a convenient community that fits your expectations.
4. Is this a smart financial move?
Being realistic about your finances is a great step towards planning to upsize, downsize or rightsize. Making solid financial plans or creating a financial plan could help you decide if a move is the right decision for you or your family’s future.
5. Are you overwhelmed with the current responsibilities of maintaining your home?
The average American household spends approximately 70 hours a year on lawn and garden care and 20 hours each week maintaining their home. These hours and tasks can overwhelm some or be a small price to pay for a comfortable home to others.
Few if any home transitions occur without changing the volume of personal possessions, or personal assets. Moving to a larger house typically triggers an increase in personal property and moving to a smaller one typically generates a decrease. No matter what, it is important for families to take the time to evaluate their goals when preparing for retirement, downsizing or decluttering.