Retirement Planning in Charleston, SC involves more than accumulating assets over a lifetime of employment. It also involves deciding what will be done with those assets once the individual retires. For example, think of what will become of the family home. There’s actually more than one possible way to go once that last day of work has passed. Here are a few alternatives to consider.
Staying in the Home
Some retirees determine that they want to remain in their homes for as long as possible. To that end, the process of Retirement Planning in Charleston, SC will focus on paying off the mortgage in full before reaching retirement age. It will also involve creating cash reserves that accrue interest as the years pass, and can be drawn on to help with the upkeep and maintenance of the property. By projecting the costs involved with staying in the home, it’s easier to ensure there are plenty of resources to handle whatever comes to pass in those later years.
Selling and Downsizing
Another approach is to plan on moving to a smaller home after retiring. This is often a good choice for retirees who prefer to not deal with the upkeep of a home and grounds that are too large. If this is the plan, investing money in the home while still working is a smart move. Doing things that increase the market value translate into commanding a higher price for the property when the time does come to sell. More money increases the odds of having the cash to buy a smaller home outright and not have to deal with a new set of mortgage payments.
Passing the House on to a Child
There’s also the possibility of deeding the home to a child, with the provision that the parents get to live there rent-free for the rest of their lives. While not the first recommendation by most financial experts, this strategy can provide certain advantages and ultimately simplify the settling of the estate when the time comes. Before choosing this approach, talk with professionals who can point out the potential benefits and drawbacks associated with this kind of arrangement.
Before coming up with any plan for the house, browse our website arrange to speak with an expert. Explore this issue in tandem with other aspects of retirement planning and create an an approach that works best for the individual.
