A leading-edge research firm focused on digital transformation. Living frugally in our early retirement years, running a small blogging business on the side, receiving a small inheritance, and lucking into a long bull market have all given us a financial cushion. And, I still get a kick out of being able to go out on my own, without having to ask for the keys! 4. Hmmmm…..We downsized 13 years ago when we moved from 3200 sq ft in the city to an old 1600 sq ft farmhouse in the country on acreage. I think it just comes down to how I was raised. The initial and most tangible benefit of our downsizing was financial. When I graduated, I didn’t have any way to get back “home,” and had to start my adult life in a strange place (because I didn’t have a landing spot). Looking to see if anyone has positive experiences of a similar move. I gave up my San Francisco apartment to live on a boat. Nancy, I loved our other house but I didn't like that all the bedrooms were upstairs; plus the area around our house was getting busier with lots of traffic. That implies less and smaller furniture, appliances, tools, gear, and so on. Sometimes she feels “cooped up.” I’d always appreciate a little more front yard privacy than urban living affords. ), “Not infrequently I hear heartbreaking stories about older people living in huge houses surrounded by the clutter of their earlier years.”. Read more: 6 signs you should sell your home, according to experts. Although we doubled the size of our house, our property taxes are a fraction of what we paid in the North, and we have no state income tax as well. Capital gains tax. – Moved from a 2,500SF home to a 2BR/1BA 1,200SF home; could use another BA but, the view is to die for "We find that we mostly live outside of the van and use it as a bedroom, bathroom, and kitchen on wheels," Kelly said. I have a good friend whose 80-something mother became a widow. Check off these tips to time your downsize right: Make sure its the best time to sell in your market. My browser was misbehaving and I’d thought I’d lost the original reply, Darrow wrote: “The initial and most tangible benefit of our downsizing was financial.”. We’ve also had to make a small psychological adjustment to not owning real estate. You don't need these anymore. It also is friendly to those with low incomes (retirees, poor, etc), while punishing those that keep themselves tied to a W2 job and spend all they earn. But we also have done some things right in this adventure called retirement, including: Important paperwork. The goal should be buying a house that you can pay off prior to retirement. Best of luck to you and yours on your adventures. I regret things of my grandparents leaving the family because I didn't know the were being sold or donated. The garage was packed full from side-to-side and front-to-back. My 2 bedroom home is easy to clean, HOA takes care of yard and snow. You could stay in NY and be miserable with taxes and the climate, get yourselves into a position that you cannot move eventually, and they will have to leave for jobs or what not. The house sold within 24 hours. With that many items changing hands, there was bound to be a misjudgment or two. "It is so small that I cannot even meet with clients in it.". As we know moving is one of the most difficult tasks. Appreciate the ability to have an actual nuanced conversation, without all of the dogma that usually accompanies this topic. Our spending in the first three years of our retirement have been determined by the luck of a rising stock market AND and I will add, an ACA subsidy, which saves us about $10 K per year. For the record, I’m not defending the ACA. Darrow is taking a well deserved break from most of the day to day activities of running the blog, including managing the comments. I considered that a down payment and trial run for the frugal, downsized early retirement lifestyle that I was targeting. I hope to emulate the “Straight Arrow” I hope we can continue our policy here and avoid turning this into a political debate, which is not relevant to what this site is. Your timing is everything when you downsize for retirement. Leaving friends behind is challenging. Choose your favorites and downsize the rest. The best part of downsizing was the feeling of lightness, having no possesions to worry about. Nothing that can’t be overcome, but it is different. ‘He wants to sell up, take the cash, downsize and give deposits to our two children to help them buy somewhere in the future’. And that was fine with me. You can also choose between plenty of cheap moving supplies when you are completely decided. I my case I didn’t downsize that much but told myself I could no longer buy two (low mileage used) cars every four years with combined mo payments of about $750. 1. in the early 1960s and played fearlessly on the edge of little falling water falls. Do We Regret Downsizing & Selling Our House? Thanks for the link on the Health Sharing Ministries. And that just feels so wrong. Every day off for the year prior, I chose one thing to go through…a closet, a chest of drawers…you get the picture. 12.06 EST. If we choose to downsize I was thinking we keep the house and rent it. Disclosure: Can I Retire Yet? Research by Prudential suggests downsizing … There were tears — sadness at saying goodbye to our family years and many of the accompanying possessions. Kelly said another downsizing challenge was parting with certain possessions, especially sentimental ones. 7 "You should also take photos of individual items that are special to you that you will be letting go." Good luck! They went from a 4,000-square-foot home to one that's 1,300 square feet, and find it challenging to have big get-togethers. ..and all the more fun to read as I have had the privilege of visiting you in your Santa Fe place. If half of your wealth is tied up in your house and you can't touch it, you are limiting the income you will need to live in retirement. "Both of us chafed at the limited space and were frustrated with the lack of privacy," she said. A few years back, when we started our quest to live with less space and clutter, I think most people who knew us thought we had finally lost our minds. "Our second bedroom was set up as an office and den and we even started using headphones to watch TV separately to avoid the sound disturbing each other.". and the van is about as large as two walk-in closets," Kelly told Business Insider in an email. As a result, MacGregor lost a lot of the conveniences she had with her house. Our previous home was not large by many standards, and held a family of three people plus pets, whereas now there are just two of us. Scott, who co-owns a company called Asset Advisers and has a consulting business in commercial real estate, says she won’t regret downsizing if her daughter moves in, but it’s a good cautionary tale to be aware of. ft house, we may very well spend more on our next house (we like the psycological comfort of home ownership) to live where we want. And, in later years, she has done the lion’s share of the shopping and errands for us. Increased demand for smaller houses and even condos in many areas is limiting supply and pushing up prices. I’ve yet to regret anything I’ve given away. If you click on one of these links and buy from the affiliated company, then we receive some compensation. on saving, investing, retiring, and retirement income. But, given the opportunities you finally have for your free time in retirement, you might not want to short-change yourself in those departments. Why This Family Traded Their House For A Condo—With No Regrets. We hold onto vehicles since we buy ones that last. Phillip, sounds like you guys are thinking things out very well. Unfortunately my partner is not ready yet, so I’m trying to decide how to proceed. Don’t part with these items—you’ll regret it! We moved from the east coast to the west coast once the kids were out of the house. My wife and I have only moved once, and it was truly surprising at how much we had accumulated in our 800 sq. I actually have much more time to see my friends and family. Be honest with yourself. 4 years ago we quit our jobs, sold our house and got rid of almost everything we owned. As always, thanks for Sharing! , a 75-year-old freelance writer and editor, downsized from a house to a condo back in 2004 when some of the magazines she worked for went out of business. And, as we’ve discussed, the similarities btwn our FIREs are remarkable. 3. Make a note of it. Running Low in Retirement: Expense Strategies, Renting vs. Buying: The True Cost of Home Ownership, Choosing a Compact RV or Camper for Retirement Travel, DIY Investing Resource #1: JL Collins’ “Stock…, Getting a Mortgage When You Have Assets But No Income, One Solution for Cheaper Retirement Travel: A Small RV, the best current travel rewards offers here, https://www.caniretireyet.com/flexible-health-insurance-early-retirement/, Developing Systems To Conquer Your Early Retirement Fears. Not to mention the capital I now have towards that life. "When our kids lived at home, we were very active in school sports programs and would host events with large groups of athletes and friends of our children," he told Business Insider in an email. As you said, you can’t move on to what’s next if you hold on to the past. Thanks for the update, your story has been a fun one to follow. I am “ruthlessly” parring monthly expenses. "I had a fully furnished house with an extensive art collection — my father was an accomplished artist and taught me to appreciate art," she said. In the years since retiring (and even a few times before), we have done several long-term house swaps, or rented our house out short-term and rented a house overseas. Tiny house owners are also hyper-aware that their home will most likely be damaged when driving down highways because of the intense wind speeds. Well, it really is! "I regret this decision because now my beloved home is being filled with strangers — and I had to throw away 75% of all my stuff," she said. In our case, downsizing also applied to vehicles — both number and size. But it was still worth it! Luckily I have never been a shopper! Only the timing was open to choice. Or perhaps they simply want to reduce their housing costs. In the case of health insurance, in all honesty I can continue to work and not have to mooch off someone else to pay my way. Also, I just cancelled our ADT service in favor of Simplisafe. It was tough on all of us but as usually happens with younger people, she and her fiance decided to move to NC for better job prospects. Instead, explore your new … 1. The costs per mile driven look about the same to me whether you’re operating one or two vehicles. When our kids lived at home, we were very active in school sports programs and would host events with large groups of athletes and friends of our children," he told Business Insider in an email. How about the stuff inside the house? Now, in retirement, it feels sometimes like we might be rebuilding our “estate.” Truth is, we have added back a non-trivial amount of stuff. Its a shame to have a couple million dollars and conclude that you still cant retire yet because of health insurance costs. But the process was inevitable. In our old house, we bought it as an extreme fixer upper and remodeled it top to bottom. Here are some of the biggest ones. Then, last year, we added another vehicle. Doing it every 2-3 years helps us keep our “stuff” in check! But I really would like to retire early (43) and stop sitting in rush hour traffic, put up with an overly-demanding boss, etc, etc. You’ve just made a serious decision about what your new home will be like, so now it’s time to roll up your sleeves and get down to work. Marketing consultant Marsha Kelly and her husband, both around 60 years old, downsized from a 4,300-square-foot house (with a 1,200-square-foot attached apartment) to a vintage VW van of under 100-square-feet. That went out the window late in year two of retirement. As a parent of two adult children, I know now that it’s common for kids to take a few years to figure out what they want to do and where they want to do it, and if we’d moved to be near them we’d have found ourselves alone in Montreat, for instance, or in the Twin Cities. For example, I switched from a DirecTV account that was over $200 (we had way too many services) and moved to a DirecTV Now streaming account for $50. They certainly feel a lot more “fair”. Before you go on with downsizing your home, make sure you give proper thought to all the factors above. Get out of the house. 4 years ago we quit our jobs, sold our house and got rid of almost everything we owned. We decided to downsize over five years ago from a large two-story house with a basement to a condo with less square footage. It was a great feeling! Nobody is subsidizing anybody – Sounds a lot more like the American values I remember….and therefore a whole lot more appealing……And sustainable. You may be tempted to spend weeks or months nesting in your new home, but the boxes can wait. It’s great to hear from you again, Darrow! I just don’t understand the logic of keeping yourself trapped due to guilt, unless you think it is your obligation to pay the maximal amount of taxes possible and choose to bypass all tax advantages (401(k) contributions, etc). The ACA is it right now; if not let us buy into Medicare. By Exploring Alternatives in Travel 2017-03-02. Important paperwork. But downsizing doesn't always work out, and some people who do it have regrets later. Caroline would like more space in our current rental — separate offices, and a guest room. We’ve experienced incredible unexpected benefits from downsizing our house to save money. Our Retirement Expenses: Where Does the Money Go? I’m starting to worry we won’t be able to cope with the change particularly as we have 2 teenage DS’s coming with us. Like most modern couples, for all of our married life, we owned and maintained two vehicles. Do we have any regrets about downsizing our life and moving to a place half the size in another region of the country? Downsizing doesn't always work out, and some people who do it have regrets later. We will likely pay in full for this new house (we don’t want the stress of a mortgage) but recognize it’s much more prudent to rent a more modest place and invest the capital from the sale of our existing house, given our plans to travel extensively. Would love to hear more from you or others about the full time RV life. A 2015 study showed that recent Movers report more unhappy days than Stayers. I’ll keep trying. Before covering the major steps to downsizing your home, let’s take a quick look at the most opportune moment to make that life-changing decision so that you never look back in regret. The income helps to keep this blog going. I’ve always been taught that I don’t have the right to the fruits of someone else’s labor. 3. MaryBeth. Our Son goes to college in a year and we could retire once he is done, but wonder how “where the adult child (children) settle after college” has factored in to your locations decisions? Like you, the garage sale went on for a while. We’re big believers in the psychological burden of owning things, particularly things with engines. Most financial advisors recommend a balanced retirement portfolio. That just delays your ability to enjoy what’s next. Thanks you for sharing your reflections on this topic in such a thorough and thoughtful manner (as always). Again, I’m not being critical or arguing with your viewpoint. Thanks for the candid reply. "My condo is on the second floor, so when the elevator breaks down, I can't get downstairs and back up again on the stairs with my walker." Although we will probably downsize from our 3000 sq. Downsizing tends to be more successful when the downsizers are making a conscious decision about how they want to live their lives. With a series of yard sales, charity pickups, and gifts to friends, we reduced the volume of our possessions by about one-half. Ultimately, though we left too fast, we don’t regret leaving. If you’ve put yourself in a position to retire by 43, I’m sure you’ve paid considerable taxes (income and other) up to this point, and likely will continue to be active in retirement paying taxes on consumption items and likely will end up doing other productive things which you’ll end up paying taxes on (like starting hobby businesses, doing part-time jobs) etc. From there we went to a two bedroom 1200 sq ft loft rental for two years. Downsizing to a smaller and less expensive house isn't the right course for many people, some experts are now saying. Like you, we sold our 3000 sq ft home in 2013 and downsized by about 2/3rds. Take a walk through your house or apartment and evaluate everything you come across (furniture, books, food, etc.). Downsizing five years ago closed out one major chapter in our life, and opened another one. We love our new location and I love that everything we really need is on the main floor. In fact, the unexpected high cost of maintenance is often a top reason new homeowners say they regret the purchase of their first home. I’ve never heard anyone feel guilty about having employer based health care subsidized, but that is exactly what happens when you receive this form of compensation without being taxed on it. It’s a shame. 1. We didn’t necessarily want to remain in Tennessee that long if not required. I’m retired, my partner is semi-…and we have a house full of beautiful things and memories of our life….why would we sell this, unload all our sentimental “stuff”, just to go rent a small townhouse in Santa Fe? High rates of in-migration are being reported in the 55+ age group, as empty-nesters and baby boomers are downsizing and relocating within their existing communities. Though, depending on the area, the rental analysis can work in your favor. Myers said another downsizing drawback was a lack of space when it came to having company. 4 years ago we quit our jobs, sold our house and got rid of almost everything we owned. In fact, if anything, we regret not downsizing earlier. Though we do attempt to block objectionable content. I think the root of my guilt is not wanting to be a burden on my “neighbors” if I decide to no longer work. In this video we're talking about the pros and cons of our minimalist nomad lifestyle and whether we have any regrets about our decision … Anything we forgot we had or had not used in a year went to Goodwill. The freedom that you find with a smaller house is something we have fallen in love with and would gladly do it again were we to find a house we loved more than this one. ”. The quantity of stuff staged in our two-car garage for those sales was unbelievable and overwhelming. On the investment side, we have to make sure we are exposed somehow to real estate asset classes, or accept not having that diversifier in our portfolio. Downsizing your house can cause a great deal of pressure and uneasiness. Get Out the Tape Measure. When I ran the numbers, it did for us. Mistakes will happen in any move. Years of rising house prices in some parts of the country have given a lucky group of retirees an asset they probably never expected to have. Those items can be sold at auction. Even when she would travel and leave the car at the airport for a week, there was little inconvenience to my lifestyle. These include the fact that people are living longer, and a shrinking of the supply of houses over time. It takes time to reach the depth of friendship you had previously. The emotional toll was high. It’s good to give them the freedom to figure out their adult lives without having to take their parents into consideration. When you do, you should feel good about downsizing your house successfully without having regrets. Long story short, instead of being a 15 hour or so drive from her, we are now only 5. I think we’ll be here for as long as we can, because we love it here. And that was facilitated after our move by our convenient downtown location. Benefits of Living in a Condo. Marian Crapanzano and her husband, John, both 67, recently forfeited a deposit on a condominium in Rockland County, N.Y., because they couldn't sell their three-bedroom home in … I say “sharing” because at the time Caroline was still commuting to her job. One has a lifetime involved and enjoying these “things”….why should we sell them, or give them away? Read on to find out the best way to downsize your house when moving. As a daughter whose father took early retirement while I was in college, it was really hard, traumatic, even, for my parents to move to Florida from Massachusetts. Subscriber Ron Humes, a 51-year-old marketing executive, and his wife, 48, also downsized when their kids moved out, and now regret it. Sonya Myers, a realtor and author of "Downsize Your Home, Rightsize Your Life," said she found that out the hard way. The second vehicle was purely a splurge based on our financial stability and the growth of our retirement assets. "Although our downsized space had an open floor plan and was fairly spacious considering the overall square footage, it felt crowded with more than four people in it," she said. I think it is fascinating that people feel so strongly one way or the other about ACA subsidies, b/c our health care system has become so politicized. Smart About Money , a program of the nonprofit National Endowment for Financial Education, says if downsizing doesn't reduce your home expenses by at least 25 percent, it isn't worth the bother.
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