Sunrise Homes & Renovations, Inc.

The Ultimate Payoff: Getting Debt Free Before Retirement

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The Ultimate Payoff: Getting Debt Free Before Retirement

For many people, reaching retirement is something to look forward to. At the same time, too many people still have a lot of debt by the time they retire. In order for people to really take advantage of everything that retirement has to offer, they should try to find a way to pay off all of their debt before they retire. In order to make sure this happens, there are a few tips that everyone has to keep in mind.

Try To Keep Housing Costs Low

First, it is important for everyone to try to keep their housing costs as low as possible. Housing is one of the major sources of debt that people have when they retire. This could come in the form of a mortgage that has been stretched out for a longer period of time in order to send kids to college.

At the same time, as people start to approach retirement, they should try to attack this debt as much as possible. Remember that cash is king. Paying off a mortgage before retirement can really help people improve their quality of life on the other side of retirement.

Pay Down Credit Card Debt

Ideally, individuals are able to pay their credit card bills in full every month. Yes, it is great to take out credit cards because of the rewards that they provide and the positive credit history this can create. At the same time, if individuals end up carrying a lot of credit card debt, this can end up hurting them in the long run. In addition to damaging someone’s credit score, this can also take money away from retirement. Therefore, it is important for everyone to try to pay down their credit card debt as quickly as possible. That way, they do not have to worry about this when they retire and have more money they can spend every month.

Get Ready To Retire Debt Free

By following these tips, everyone is able to enjoy their retirement just a little bit more. By trying to find ways to retire without any debt, everyone is able to set themselves up for success. That way, they will be ready to take advantage of everything that retirement has to offer.

 

Pros and Cons of Downsizing After Retirement

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Pros and Cons of Downsizing After RetirementWith Baby Boomers already rolling into retirement and Gen X looking forward to shrugging off the stress of the 40-hour work week, downsizing could be a strategic move.

For many Americans, homeownership remains their single largest investment and the monthly mortgage payment their highest bill. Lowering or nixing that cost altogether can free up a considerable amount of cash that could be used for retirement security or leisure activities. Keep in mind, your “golden years” should be just that, so enjoy them.

That being said, there are pros and cons to consider when deciding whether to downsize to a less expensive home.

Size Matters

If you have raised a family and find yourself as an empty-nester, so to speak, you probably have more home than you needed during the days of romping youngsters. Downsizing to a smaller home reduces the amount of maintenance, upkeep and cleaning responsibilities. Relieving yourself of those chores can free up time to relax.

On the con side, a smaller home means less space to for family visits. Although children and grandchildren may not spend months at a time, having the space for holiday stayovers can be important. A smart downsizing plan should consider balancing reduced labor with family time.

Costs Considerations

The surface numbers of downsizing often point to freeing up personal income. A lower or no mortgage payment equals more cash on hand. But selling and buying come with industry and relocation costs.

In all likelihood, your home sale and purchase will come with real estate agent fees, closing and moving costs among others. It’s important to factor all of these expenses into your future projections.

Although home transaction costs are generally static in the real estate industry, relocation can be a bit of a wild card. In-state moves may require only a set fee from a local moving outfit. But if you are headed to warmer or cooler climates, a big move can run upwards of 10 percent of your selling price. Get solid moving prices before tallying up your gains.

Ranked among the top pros to downsizing is the reduction in expenses. Retirement-age folks who have built up significant home equity may find themselves in a position to finally have no more mortgage. In this low-inventory seller’s market, the ability to cash out on high equity gives Baby Boomers and Gen Xers a chance at a zero-mortgage lifestyle.   

Many of our valued elders and 50-somethings are in the downsizing driver’s seat. With the help of an experienced real estate professional, your golden years could get even better.

Your Guide To Aging In Place Home Modifications

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Your Guide To Aging in Place Home ModificationsIf you’ve had to watch your parents transition into assisted living, you may have no desire to call such a place home. You are not alone. According to the Aging in Place Housing Survey conducted by the American Association of Retired Persons (AARP), more than 90 percent of seniors want to remain in their home.

Many survey respondents said that they would rather use nursing home funds towards purchasing a home that is suited for aging in place or making accessible home modifications.  

You’ve probably heard the buzzwords — aging in place, non-assisted living, universal design — these phrases mean the same thing: growing older in your home. Today, home modifications can help you continue to live in your home as you age. Plus, aging-in-place home modifications are much less expensive than moving into a nursing home or assisted living facility.

The problem is that most existing homes are not conducive to aging in place. There are more than 100 million homes in the United States. However, only one percent of them are currently set up for accessibility. Fortunately, there are a variety of home modifications that you can do to make any home more accessible. Here is a handy guide to accessible home modifications.

Think About Your Future Needs

The first step in making sure your home is suited to aging in place is to consider how your needs might change in the future. Everyone’s situation is different.

If you have a chronic illness, such as diabetes or heart disease, it is best to talk with your doctor to determine how these health issues might make it hard for you to live on your own in the future. Consider what modifications you’ll need to make to ensure that your home will suit your future needs.

For example, if you are thinking of buying a new home with an upstairs, you might use the upper part of the house for your home office now and convert the area into a caregiver’s quarters in the future.

Consider a First-Floor Master Suite

An essential home modification for aging in place is first-floor living. Although you might not have mobility issues now, hip replacements and other problems that affect mobility are frequent with increasing age.

Plus, a first-floor suite can increase the value of your home should you sell in the future. According to data from Builder Online, out of the best-selling new home floor plans, more than 83 percent feature accessible master suites.

Choose Slip-Resistant Flooring

Falls are a serious threat to the independence and health of older adults. They are the leading cause of injuries among Americans ages 65 and older. That is why it is so important to take steps to reduce the likelihood of a fall.

One of the easiest modifications that you can make in this area is to choose slip-resistant flooring. Cork and bamboo flooring are both popular for aging in place as they are softer and thus more forgiving during a fall.

These are just a few of the aging in place modifications that you can make to your home. There are many others. The important thing to remember is that you don’t have to sacrifice lifestyle or luxury to have a home that is also accessible.

Many of the above modifications can be made anytime and can help enhance the beauty and comfort of your home.