Newspaper article News Mail Bundaberg Qld.

Rightsizing for Empty-Nesters

Newspaper article News Mail Bundaberg Qld.

Rightsizing for Empty-Nesters

Article excerpt

Byline: Tony Rigby

IF YOUR kids have flown the coop, selling the family home and buying something smaller is likely to be on the horizon.

Many of my pre-retiree clients have grand plans to sell their home and buy an apartment closer to the CBD when their children move out. But they're usually surprised to discover how expensive this can actually be.

This transition can be difficult because often where people picture themselves moving to and what they can realistically afford are two different things. That's why I prefer to use the term 'rightsizing'. After all, you are looking to make the right move to the right home that is best suited to your future lifestyle and financial needs.

Where people picture themselves moving to and what they can realistically afford are two different things

So, before you put your family home on the market, there are some important things to consider. Here are some ideas to get you started.

Start the conversation

Many people wait until they are over 60-years-old before they even think about downsizing, but this is often too late. It's best to begin this conversation at least five years out from retirement.

It can be daunting but the big decisions you make now will have a significant impact on your finances later in life.

If you're unsure of how to approach this next phase, it's a good idea to discuss your needs and goals with a qualified financial planner.

They'll be able to work out how much you can afford to spend on your next place and determine the best time for you to sell your family home.

Assess your situation

The good news is empty-nesters are usually past their most expensive life stage. School fees should be a thing of the past and you should have a sufficient cash flow, low or no mortgage, and a growing super balance.

If you've started to think about what to do next, letting go of the big family home can be a great way to free up some capital. …

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