Rightsizing for retirement
What does your home really cost?
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Most American’s believe a home is a safe investment with lots of potentials but it may be time to take a closer look at what your home really costs.
Fifty-four percent of American’s in their late 50’s or early 60’s have a mortgage or a home equity debt. With housing costs consuming as much as a third of the average household budget, reducing your mortgage debt and expenses by right-sizing your home can make a real difference.
Look at the potential cost savings for one couple. Sandra and Bob have a 5,000 square foot home in the suburbs and decide to relocate to a 2,000 square foot condo. By saving a hypothetical $10,000 a year in utilities and maintenance and a hypothetical $40,000 a year in mortgage payments and property taxes, they may have an additional $50,000 a year to invest. If the household savings earned a hypothetical 6% annual rate of return the account may be worth nearly $660,000 in ten years.
Whether you are already retired or just starting to prepare, take a look at your home. Is right-sizing the right decision for you? Give us a call today and let’s discuss your options.