Will staying in your property derail your retirement security?
- Retirement is a time of major life changes.
- In some cases, it makes sense to sell your home when retiring.
- Selling could be smart if doing so could shore up your finances.
If you’re retiring from your job, you need to make sure your finances are in order. And for many seniors, this means making a decision about what to do with the home they live in.
While some seniors prefer to stay put in their current house, others may want to sell — or may need to in order to shore up their financial situation.
It can sometimes be difficult to figure out what group you fit into. But you can get a good indication of whether unloading your property would make the most sense by watching for these four signs that suggest you may be better off finding a buyer for your home before leaving the working world.
1. You’re worried about running short of money in retirement
If you are afraid you won’t be able to afford to retire, selling your house could sometimes give you much more financial security.
Say, for example, you have a family home that’s worth quite a bit more than you owe on it because it has gone up in value over time or because you’ve paid down your mortgage — or both. In these circumstances, selling could be one of the best things you do. You can take the proceeds from the sale, use some of the money to buy a smaller and cheaper place you own free and clear, and invest the rest to bulk up your investment account. This could go a long way toward solving your money woes.
Not everyone is in such a good position, but selling could also help you be more financially secure even if you don’t have a lot of equity. If you can lower your housing costs, even if you don’t walk away with a big profit, you may still be better off.
2. You still owe a lot on your mortgage
Ideally, you’ll have your mortgage loan paid down by the time you reach retirement. But if that’s not the case and you still owe a small fortune, you may not …….