Rightsizing for Retirement

Rightsizing for Retirement

May 20, 2021

Most Americans believe a home is a safe investment with lots of potential. But it may be time to take a closer look at what your home really costs.

29% of Americans in their late 50s or early 60s have a mortgage or a home equity debt, with housing cost consuming as much as a third of the average household budget. Reducing your mortgage debt and expenses by rightsizing your home can make a real difference.

Look at the potential cost savings for one couple:

Jody & Jeff 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 earn a hypothetical 6% annual rate of return, the account may be worth nearly $660,000 in 10 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.


This is meant for educational purposes only.  It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.

This hypothetical example is for illustration purposes only and is not intended to be representative of actual results or any specific investment, which will fluctuate in value. The determinations made by this example are not guarantees or projections, and no taxes or fees/expenses are included in the calculations which would reduce the figures shown. Please keep in mind that it is possible to lose money by investing and actual results will vary.