What You Should Know If You’re Downsizing

If you’re like most people, you’ll likely move multiple times during your lifetime.  In fact, the U.S. Census Bureau estimates that the average person will move a total of 11.7 times over the course of their life for various reasons such as job relocation, getting married or retirement.  According to a recent article, downsizing has become a trend.  This is especially true for older Americans either approaching retirement or in retirement already.  There are a number of reasons that make downsizing an attractive option for seniors.  Newer homes typically require less maintenance, and smaller homes can translate into savings for homeowners in the form of lower utility bills, property taxes and insurance.  Other common reasons for downsizing include moving closer to family, taking advantage of a milder climate, simplifying one’s lifestyle, or providing extra cash for retirement.1

Part of one’s decision to downsize also requires you to consider your housing options.  For example, do you want to live in a senior community or in an apartment?  Maybe you need a little extra assistance and are considering a continuing care or assisted living facility.1

The process of packing and moving can often be a daunting task.  In preparation for your move, it’s helpful to go through your possessions and organize as much as possible.  After years of living in one place, it’s easy to accumulate belongings, so sorting through the items you’ve collected over a lifetime can be overwhelming and time consuming.   However, on the plus side, it gives you a chance to downscale and get rid of what you don’t need.

Next you’ll need to schedule a moving date and make moving arrangements.  If you choose to use a moving company, it’s always a good idea to get estimates from at least a couple companies, and make sure all your questions are answered so you don’t run into any surprises later.  If you’re making an inter-state move, there are also services available specifically for transporting your car if you don’t want to drive it long distance or don’t want to put the miles on it.

Contact your utility companies to transfer your account from your old home to your new address.  Don’t forget about other services you use such as cable/dish, internet, phone, subscriptions, etc.   Make sure you fill out a change of address with the post office so you don’t miss any of your mail.  You can do this online or fill out a physical form and mail it in.

Make sure you refill and/or transfer any prescriptions you have.  If you’re using the same pharmacy at your new location, then the new pharmacy should be able to access your information through their shared system.  If not, then you should be able to transfer it with a simple phone call.

If you’re thinking about downsizing due to financial reasons, you may want to consider a reverse mortgage as a way to supplement your retirement income.  A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration insured loan.  A HECM enables seniors to access a portion of their home’s equity to obtain tax free2 funds without having to make monthly mortgage payments.3  A HECM for Purchase may also be an option for seniors that want to downsize to a smaller home.

If you’d like to learn more about reverse mortgages or want to find out if you’re eligible, call 800-218-1415.

 

1 The Ins and Outs of Downsizing Your Home – richmondregister.com, by Gina Noe, 11/19/15, http://www.richmondregister.com/community/the-ins-and-outs-of-downsizing-your-home/article_e963b7aa-8ee9-11e5-8119-eb2f19bfef70.html.

 2 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

3 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.

Author:  Meredith Manz