A common strategy, at least in theory, is to downsize one’s home once you reach the “empty nest” status in life.

The kids are gone, so why do we need a big house? Why not sell the house, buy something smaller, and then invest the difference?

Again, great in theory.

It rarely works out that way.

Rather than “downsize,” I see most people “right-sizing.” Instead of smaller and cheaper, they choose a house with a better floor plan (no stairs) and less yard to maintain.

But there is nothing left over to invest. Too often, more is pulled from savings for the new house.

This may be well within one’s retirement budget, but often it’s not. And that increases the possibility of exhausting savings in one’s lifetime.

The key is to do the math first. A well-designed financial plan is fluid. It takes into consideration lifestyle changes and studies the long-term cost impact. To learn how we do this for clients, click here to schedule a call or call 513-563-PLAN (7526).

Regards,
Nikki Earley, CFP®