Home Sweet Home? Deciding Whether to Downsize, Relocate, or Age in Place

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3.14.25: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to Money Matters with Mike, with your host, Mike Zeno. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you too. So now let's start the show. Here's Mike Zeno.

Speaker3:
What's up people? Happy Saturday and welcome to the show where we dive into the strategies, the insights, and the tools you need in order to secure a confident and stress free financial future. I'm Mike Zeno, and my mission is to help you protect your nest egg, outsmart retirement risks, and live the life that you've worked so hard to achieve, whether you're nearing retirement or already enjoying it. We are here to guide you on every step along the way. And boy, do we have some great information for you today. Because on today's show we are going to discuss whether downsizing, relocating, or just simply aging in place is right for you. Plus, if we get to it, we'll talk about four mistakes to avoid for a successful retirement. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Speaker1:
I am doing great, Mike. I hope you are as well. And you've had busy, busy times here, but I think it's been productive, I'm sure. So the good kind of busy? Not the bad kind, I hope.

Speaker3:
Uh, yes. Yes, yes, I have been extremely busy. Uh, a lot of folks know that I work with a lot of federal employees, the heroes that keep the government running. And because of all of the cutbacks and the reduction in force, I have been, as I say, busier than a one armed wallpaper hanger. So yes, we are serving a lot of heroes and making sure that they have very clear and concise pathways into a retirement that they can be confident in. So yes, very busy.

Speaker1:
Great stuff. That's what you do each and every day. And of course, we'll do a lot of that for, you know, educational purposes of the audience today here on the show. Of course, you can get advice tailored specifically for you by reaching out to Mike. And I'll tell you how you can do that momentarily. But of course, welcome to the show, and thank you so much for being a part of things, whether you're listening on the radio in the Carolinas or if you are listening to us. Wherever you get your podcasts across the globe, you can schedule your 100% complimentary consultation with Mike Zeno as a listener to the show. Meet with him regarding your own financial situation with your family or your business. There is no obligation to do that. Just go to Money Matters with mike.com. That's money Matters with mike.com. You can also call Mike (704) 560-1573. 704560 1573. Is that number. You can also find this, as I mentioned, as a podcast. Of course, wherever you listen to podcasts, the YouTube channel has a lot of great content weekly highlights there as well. Just search for Money Matters with Mike on YouTube and don't hesitate to reach out. Contact Mike with any questions beyond just that initial consultation, because Mike actually loves, you know, talking to you and answering your questions about, you know, whatever aspect of your financial life, especially as you're planning for retirement, right. Mike.

Speaker3:
100% questions I ask most people is whether or not they have what I call a smart vision for their retirement, because knowing who you want to spend time with, where you want to live, what you're going to do during those years, and most importantly, how you're going to finance it. Those are all the first steps toward coming up with a plan that is right for you. So 704 5601573 is my number. You can call me you can text me on that number. You can also go to Money Matters with mike.com, so that we can help you make your vision for retirement a reality.

Speaker1:
Yeah absolutely. Right. And we're going to of course, you know you mentioned there, Mike, where you want to live being part of that smart vision, as you teased earlier, we're going to talk a lot about that, a lot about where people call home in their retirement years today, uh, a little bit about the psychology of home in retirement. Like, you know, why are homes mean a lot to us and much more than just, you know, four walls and a and a roof over our heads. Right. And that, of course, makes moving not always an easy thing to do, especially if you've been in one spot for a long time. We'll talk about financial and practical realities of aging in place, go through the true cost of downsizing. And of course, are you saving enough for retirement? If we get to that with all the stuff we have just an overflowing cup. Our cup runneth over here of wonderful information to share on the show today. So if we get there, we'll get there. Alright. First though, let's get some inspiration for our conversation, shall we? It's our quote of the week.

Speaker4:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
And this time around, our quote comes from everybody's neighbor, Fred Rogers. Yeah, Mister Rogers himself. And he said this often when you think you're at the end of something, you're at the beginning of something else. Yeah, boy. I mean, you know, it's the thing is, retirement can feel like it is just an end, an ending of something. But in reality, it's the beginning of another great chapter in your life. You just got to make sure that you've planned for it ahead of time.

Speaker3:
Yeah. No. 100%. I wasn't always the biggest fan of Fred Rogers and, you know, Mister Rogers Neighborhood. But, you know, some of the things he said, like this quote, I think it perfectly captures the transition into retirement. Many people view their final day of work as the end of a long career, but in reality, it marks the beginning of an entirely new chapter, hopefully one filled with freedom, one filled with opportunity, one filled with the ability to truly enjoy the fruits of their labor, but to fully embrace that next phase without any financial worry. There is some proper retirement income planning that folks. It's absolutely essential because without the steady paycheck of a W-2 job, your lifestyle depends on how well you've structured your different income streams. And the key to a successful transition is ensuring that your money works for you just as hard as you worked for it.

Speaker2:
Hungry for something to chew on? Here's some meat on the bone.

Speaker3:
This means having a well thought out strategy that includes guaranteed income sources, tax efficient withdrawals, as well as protection against things like market downturn. All right. A strong retirement plan should include include guaranteed income sources, things like social security, pensions, annuities that can provide a stable foundation. Then you must have smart withdrawals. A structured drawdown strategy from your savings and your investments is going to prevent premature depletion of those accounts. And then you got to account for market risk and how to manage it. Well, diversifying and proper asset allocation will also help protect your nest egg and then have some form of inflation protection put in place. Your plan must account for rising costs of living in order to maintain your purchasing power. And then I mentioned tax efficiency having strategic withdrawals from different buckets, tax deferred as well as tax free accounts can help minimize those tax burdens. Because retirement is not just an end, it's actually a beginning. And by preparing wisely, you can ensure that this next chapter is one of financial confidence, freedom and fulfillment. Matt.

Speaker1:
Yeah, that that's so great. And you know, like sort of hearkens back a little bit, at least to something we talked about on last week's show. You know, like losing your sense of purpose in retirement. I feel like that is one of the things that can lead to that is not having a solid plan, because then if you're if you're not able to do the things that you want to do, if you're if you have to have to go back to work because you haven't planned effectively and properly to make sure that you don't have to do that, then you know, you can be in a in just a rough situation. But the thing is, is like, you know, we want you to be in a situation where if you want to go back to work, you can go back to work if it's something that you love. If it's something that you enjoy a little part time job getting out, seeing people, that gives you a sense of purpose. Maybe you know, it all depends on your individual situation, your wants, your desires and your needs in retirement. And you've got a plan for what you want your life to look like in those years.

Speaker3:
Yeah, 100%. And folks listening right now, if you missed last week's show, you can go to Money Matters with mike.com and search the previous episodes. Or if you'd prefer to watch it on video, you can go to the YouTube channel just by going to YouTube and searching Money Matters with Mike, and you can search all of our entire library of going on almost three years now. There's a lot of great content that you can share with your friends, your family, your coworkers, and anybody else that you think needs some help from a financial standpoint.

Speaker1:
Yeah, just about any topic that you can think of, financially speaking. We have covered here over the last almost three years going here on the show. So yeah, absolutely. Go to Money Matters with mike.com. And you can see the entire library of our previous episodes right there on the website. All right. So, you know, we're talking a lot today about home and and you know, whether it is appropriate for people to maybe stay in their homes when they retire and as they age, or whether maybe it's appropriate for people to, to move and maybe downsize or go into like some sort of a group home setting when they get into retirement, their retirement years. Right. And that answer really can be different for everybody and usually is different for everybody, because there are so many different factors that go into it. And I think one of the first factors really is sort of this idea of the psychology of home. I mean, you know, Mike, for for many retirees, right? Home is it's more than just a place. It's more than just those four walls and a roof. As I said earlier, it's that lifetime of memories that that can be really difficult to sort of leave behind.

Speaker3:
Yeah. In fact, you know, folks, if you didn't know, almost a quarter of of people choose not to downsize in retirement Simply because they are too attached to their current homes and their community, and your current emotions may be holding you back from making a move. But how do you decide what's best for your long term happiness? All right, think about this. Maybe if you've lived in your home for 30 plus years, the idea of moving, you know, just feels overwhelming. But staying put can also mean things like higher maintenance costs because your house is over 30 years old, maybe accessibility issues because, you know, when you bought it 30 years ago, you were extremely mobile. But you know, as you age, things degenerate. Break down, your knees aren't as strong anymore, your hips aren't as strong. You might need wheelchair access or walk in tubs and then, you know, social isolation, you know, if you are retired or close to it, are you considering a move? And so if you are, maybe here are some questions to ask yourself. You know, do you have those strong social connections in your current community? Is your home still safe and manageable as you age? Can you handle all the maintenance right? Would a move free up some financial resources for a more comfortable retirement? And then really, are you emotionally prepared to leave behind decades of memories? Or would staying create unnecessary stress in your later years? Right. The decision to stay or move is not just financial. It's deeply emotional that.

Speaker1:
Yeah, it really is. I mean, the thing that and this is a little bit different situation, obviously, because my parents were not of retirement age at this point. But I remember we when I was about 12 years old, we moved out of the house that my grandfather built, like literally with his two hands, built my, my, it had been in my family ever since he built it back in the 1940s, I believe. And then, you know, my mom, of course, had kind of pretty much grown up in that house. She had lived in it most of her life. I had lived in it all of my life. My sister had lived in it all of her life like it was a it was an emotional thing. But we moved out of that house and yeah, that sort of emotional struggle leaving behind those decades and decades and decades of memories, especially for my mom. It was difficult, but in the end, it was the best thing for us. Those maintenance costs, like you said, had had gotten on up there and and a lot of other things. We moved into kind of a more manageable home. And it really was, um, it came down to just what made sense, despite the emotional ties that we had to that place. Because, you know, I mean, yeah, we made a lot of great memories there, and especially like of my grandparents and all of that, and my aunt who was there with us as well for a while. But that doesn't like leaving that place, didn't mean that we left them behind or forgot about them. We took those memories with us to a new place and made new memories in the new place. Right? So it can be something that has just got to make sense for you.

Speaker3:
It's funny that you say took the memories with you. So. So, you know, I moved around a lot as a as a child. Um, I was a military brat and then a lot of my professional career. And, you know, when my kids were young, you know, how you would just measure them on the, on the, on the door jamb. And every year you'd come back and measure them and you'd see all those things and. Well, rather than just, you know, painting over it, I actually popped the door jamb off and took that with me. Okay. Because I just couldn't paint over it and replace the door jamb with a new one. And, you know, it is deeply emotional. The choice whether to stay or move in. Many retirees do experience a sense of loss when they leave their long term homes, even if they know it's the right move. And studies have shown that a person's home provides that sense of security, a feeling of stability and losing that can lead to increased stress and anxiety. But on the other hand, some retirees find that moving is actually liberating. Um, less home maintenance. Lower costs. A new community to explore. Meet new friends and they find joy in that new chapter, and they appreciate the chance to maybe just declutter or simplify their lives. I mean, every time that we've moved, I've looked at it as, you know, a building block and a stepping stone to where I eventually want to be. And I'm thankful for each and every single one of those experiences. And like you said, bring the memories with you. But ultimately it's going to lead to a better situation. That's the way I've always looked at home. Home is where I make it. Not necessarily the building itself.

Speaker1:
Yeah. No, that's absolutely right. And you know, Mike Zeno have door jamb will travel. Uh, can can go anywhere, basically. Uh, but, you know, if you are thinking about a move, if you're getting close to the close to retirement, hey, if you're in retirement, but if you're feeling stuck, maybe, you know. Contact Mike Zeno. He can help you weigh those sort of financial factors in with whatever emotional factors that you may be considering as well. Just give them a call. (704) 560-1573. (704) 560-1573. Go online to Money Matters with mike.com. You can do that as well and reach out via the contact page. It is free of any cost or any obligation that initial consultation to meet with Mike Zeno. Well, so, you know, I guess sort of one of the options here then, you know, if we're looking at either moving or staying put is aging in place. And, you know, there are some financial and practical realities to to look at here. And aside from the emotions we talked about, I mean, aging in place is the goal for a lot of retirees, like 88% of people, you know, ages 50 to 80 say they want to stay in their homes as long as possible. But is it realistic, Mike? I mean, there is some costs to really consider here.

Speaker3:
Yeah. I mean, there is a real cost for staying put. The first thing you have to look at is maybe some of those home modifications I was talking about before, because, you know, those can range from thousands of dollars for simple upgrades to tens of thousands of dollars if you're needing to do full renovations, and then things like, you know, in-home caregiving that right now averages almost $5,200 a month. And that's according to a Genworth study done in 2023. So that's already two years old, right? Then you have to think, think about ever increasing things like property taxes, insurance, ongoing maintenance costs that add up, especially for retirees that are on a fixed income. And then, wow, what happens if the utility companies start marking up your energy, your water, your gas, right. Those utility costs can end up being 30 to 50% higher in older homes that aren't energy efficient. And that doesn't even account for any of the markups that I've just, you know, mentioned right there. Matt. It's a lot of things to consider there.

Speaker1:
Yeah. Absolutely. Right. And, you know, it could seem like the most comfortable option for people to stay kind of where they've been for a long time. But really, you got to be honest about, you know, whether your home can support you in the long term. You know, you mentioned Mike about making those improvements, right? I mean, you got to ask yourself, do I need to make any of those improvements because of narrow hallways or stairs or anything that could become a mobility challenge? Do I have things like easy access to healthcare? Do I have access to grocery stores nearby? Social activities if I need help? Do I have family who are nearby, or do I need to pay for that in-home care that you talked about? Those are big questions to ask yourself. And then another thing, Mike, is to to consider that social isolation thing. If you don't have access to family or groups that you're involved in social isolation, boy, that can be a huge, huge thing. Yeah.

Speaker3:
Studies have actually shown that that loneliness can be just as detrimental to your health as believe this or not, folks smoking 15 cigarettes a day. Okay, if staying in your home means becoming isolated, it might definitely be time to consider a move to a community where you'll have much more social engagement opportunities. So if you are one that wants to explore aging in place options without financial stress, then give me a call (704) 560-1573 again (704) 560-1573. You can call or text that number or visit the website. Money matters with Mike and let's get you scheduled for a one on one consultation today, where we can address all of your concerns about whether it's right to move or to stay in place.

Speaker1:
Yeah. And so we talked there about the cost, you know, of of staying in place. Right. There are costs potentially associated with that. Let's also talk about the true cost of downsizing. I mean that's sort of viewed by a lot of people, I feel like, and maybe until they get right up on making that decision as it's something simple to decide, at least financially speaking. Maybe because selling a big home after the kids are all gone and everything to free up equity and reduce costs, that can seem like that, you know, simple decision to make, but it's really much more complex than that, right, Mike?

Speaker3:
It is. I mean, beyond just the financial aspects, which are obvious, downsizing brings emotional as well as logistical challenges that a lot of retirees just do not anticipate. And the process can feel overwhelming. It can require significant planning, as well as decision making about what to keep and what to let go. And for many, though, it's just the opposite. Downsizing can be liberating because it allows them to shed the responsibilities of a larger home. It allows them to reduce clutter and embrace a much more manageable lifestyle. But then again, others find the transition difficult, especially if they've built that strong community tie. We were discussing before, but before making a decision, consider how the change is going to impact your daily routines, your social interactions, as well as your overall well-being. Matt. There are definitely pros and cons that we are going to discuss right now.

Speaker1:
That's right. And so to start us off on our pros of downsizing here, you know, you're looking at potentially lower property taxes and maintenance costs as well. You can also unlock home equity for retirement expenses. You can also have a home that's easier to maintain and manage. And what are some more pros, Mike.

Speaker3:
Uh, you can think of things like many more opportunities for those social connections and maybe some senior friendly communities that have lots of amenities where people are going to be gathering and give you plenty of chances to make new friends and try new things. You can move closer, maybe to family, or maybe you're out in the country and you need to move closer to better health care facilities. Um, overall, it may allow for a lower stress lifestyle with less clutter and less home upkeep. Right. I think all of those pros are great things. If you are somebody who is considering moving, but we can't take you all the way one side without discussing some of the cons that there are too. So, Matt, you want to start us off with some of the cons?

Speaker1:
Yeah. Let's start off with a couple of the cons here because, you know, there's that emotional attachment to your home that we've talked about as well. That's a huge thing for so many people, especially as I said, if you've been there for a long time moving expenses, of course. I mean, you've got, you know, real estate fees. You've got the things like the closing costs, you've got taxes and, you know, costs to hire movers and all of that stuff that can be tens of thousands of dollars we're talking about there. Um, it's also, you know, a competitive housing market that, you know, supply has not been meeting the demand for homes out there. So finding the right new home can be tough, Mike. What are a couple other cons here?

Speaker3:
Yeah. I'm gonna I'm gonna expand on that one before I get to those other ones. But I mean, things like. All right, I can sell my house now, and I probably have absolutely no, probably selling the problem, selling it rather, and get high dollar for it. But then where am I going to go? That's the problem because there aren't that many homes on on the market right now. It's, it's it's so opposite of what it's been in past years. So you know, finding that right new home can be extremely tough. But there's also the risk that you're going to regret the move if you downsize too soon. And then adjusting to a newer community and making social connections. As far as new friends, that can be challenging if you're not somebody who is a little bit more outgoing and, and, uh, and extroverted, right? So, you know, all of these things I think are very important to consider if you are thinking about, you know, staying in place or downsizing and moving someplace else.

Speaker1:
That's right. And a little bit of a fun fact here, that more than a third, about 37% of retirees who move, they actually don't downsize. They upsize, and they choose larger homes because they want to be able to accommodate friends and family who visit and want to maintain hobbies that may require extra space. You know, if you like things like, you know, woodworking or, you know, carpentry of some sort or whatever it might be that requires some extra room, maybe a big garage or whatever, or a basement. Um, those are things that, that you might have a bigger home for. And so, you know, when we're talking about downsizing, Mike, it can be a great financial move. The question is, is it right for you? And I know you want to crunch the numbers with the folks and see if that's the right financial move for them. Money matters with Mike. Com is the place to go to set up that initial consultation. Money matters with Mike. Com again, you can also call (704) 560-1573.

Speaker3:
And even folks, if you're one of that 37% who wants to upsize and you've planned well enough because we have the plan that allows for it to maybe hire staff that cleans your home for you if you've upsized and you don't even have to take that on yourself, then that would be a reason to give me a call as well. It's not just for downsizing. It's not just for staying in place. But if you want to rightsize, let's call it that way. Rightsize your life Rightsize your portfolio, give me a call or go to the web.

Speaker1:
That's right. I mean, it's got to be what's good for you and what's perfect for you and your situation because as we always say, everyone's situation is different. And that, you know, means, Mike, that when you have someone who's listened to the show or gets in touch with you via another means, um, what do you what do you discuss? What do you talk about? I mean, I know that it's all individualized for that person because it's not, as we say, a cookie cutter type situation. You don't give just generic advice to someone when you meet with them. It's all personalized and takes their their finances and their life scenario into account.

Speaker3:
Yeah, the first call is going to be more of a discovery call, maybe a 15, 20 minute call where I'm going to ask you some questions and get to know you and your current situation a little bit better. And I'll tell you a little bit about about me and my philosophy and see if there's, you know, a symbiotic possibility for a relationship there. If there is, we'll move forward. We'll do a deep dive consultation. And my whole goal is to get to know you and what your dreams are, what your vision is for your retirement. And then more importantly, I'll show you how we're going to finance making your dreams become reality. So, you know, examining your current plan, if you have one, is an obvious thing that we'll do. Making tweaks to it and suggestions that we think can make you just elevate your game by looking at what you have in your portfolio of assets and maybe doing a little, like I said, restructuring or tweaking. And then the biggest thing is that I'll take the time to answer as many questions as you throw my way. I want you to feel comfortable and confident in your plan, because in retirement, folks, you cannot put a price tag on peace of mind.

Speaker1:
Yeah that's right. And just reach out. Money matters with Mike comm is the website. Once again, money Matters with mike.com. And just as a little sort of footnote on all of our discussions about, you know, should should I stay or should I go, should I stay in place and age in place or should I move somewhere else? Let's look at the cost of living by state. If you're considering an out of state move. A lot of people, of course, number one on their list tends to be Florida. But from cost of living standpoint, it might not be the most affordable these days.

Speaker3:
Yeah, especially when you're talking about property taxes. When you're talking about insurance costs, a lot of people can't even get that in the state of Florida. But other areas like Georgia and parts of the Carolinas. Stay out of my part, please. We have enough traffic. Those continually are among the most popular destinations for retirees, just simply due to the climate, the affordability and the tax friendly policies, you know? But again, deciding where to live in retirement is not just about picking a state. It's about finding the right lifestyle, the affordability factor, as well as the support system that will help you, you know, be able to enjoy and fully participate in your golden years.

Speaker1:
Absolutely right. Well, Mike, that'll do it for this time around for the show. But thank you, as always for everything you bring to the table, sir. And we'll talk at you again next time.

Speaker3:
Matt, I appreciate you and what you bring to the table, but most importantly, I thank each and every single one of our listeners, whether you're listening live on a Saturday morning, anywhere in the Carolinas or wherever we're broadcasting, or if you're listening on podcast. Without you folks, we don't have a show. So if you've enjoyed anything, if you've learned anything today, please share us with your friends, family, and coworkers and whatever you're doing this weekend. I hope you enjoy it to its fullest extent. As always, make it a great day!

Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with Mike. Com or pick up the phone and call 704560 1573. That's 704 5601573. Not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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