The Empty Nesters’ Dilemma
Posted on May 10, 2017
As tempting as it is for retirees to remain in their family home, practical considerations may pose challenges and raises inevitable questions that must be considered. Could taking care of more house than you need eventually become a burden for you? What about your kids—will they worry about you living alone as you grow older?
Talking openly about the pros and cons of staying in your house may help you think about the implications of your decision for family members outside of your household. Try to be honest with yourself as you consider questions about how you would handle the cost of future modifications to your house or what would happen if you suddenly became ill.
Homes age along with their occupants, and a house that falls into disrepair may be more difficult to live in, or could become downright unsafe. Budget for home improvements. A backlog of repairs and maintenance could also hurt a home’s value. In addition to upkeep, the house may need to be remodeled to accommodate changing physical needs.
To cover the costs of renovation and home maintenance, you may need to consider bolstering your income from Social Security, retirement accounts and pensions with investments such as bonds and dividend-paying stocks that have the potential to generate income. Planning ahead for home-related expenses could help you avoid selling off long-term assets in an emergency. Consider setting up a line of credit, backed by your home or your investments, to help cover the cost of improvements and serve as a financial bridge in an emergency.
Ultimately, the decision about whether to stay in your home is not yours alone. Your children will be affected by your choice, so share your desires and concerns with them, and listen to what they have to say. Periodically run through a checklist of questions covering different aspects of staying put. You may eventually find that your situation and your attitude have changed, and that you are ready to think seriously about downsizing to a retirement community or moving closer to your kids.
In the meantime, planning ahead can help prepare you to enjoy retirement to its fullest—in the home you fell in love with years ago.
For more information, contact The Menashe Morley Group in the Rancho Santa Fe office 858-381-8113. The Menashe Morley Group, serving the community for over 32 years: David Menashe is a Senior Vice President and Wealth Management Advisor, Bruce Morley CRPC ® is a First Vice President and Wealth Management Advisor and John Naviaux CPWA ® is a Vice President and Wealth Management.
This material should be regarded as general information on healthcare considerations and is not intended to provide specific healthcare advice. If you have questions regarding your particular situation, please contact your legal or tax advisor. Any opinions expressed herein are given in good faith, are subject to change without notice.
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