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The Upside of Downsizing

The Menashe Morley Group

The Upside of Downsizing

By Debra Greenberg, a director in the Personal Retirement Strategy & Solutions Group at Merrill Lynch Wealth Management

As people grow older, they often discover that less is more when it comes to housing. Either they find that they no longer need as much space — or doubt whether it’s worth maintaining a larger home. There can also be significant financial advantages to downsizing.

In addition to the profit you could receive from selling your home, your mortgage will likely be lower. Your property tax and energy bills are also likely be lower in your new, smaller home. The savings from downsizing can be redirected into other areas of your life; however, you need to consider the financial aspects of the move.

How will the move affect my budget? You will need to consider more than just the purchase price or rental cost of your new home. You should compare the cost of living between your new and old locations. Also, factor in the cost of moving all of your belongings

Will my income be affected? When moving into a new place, you may also think about making other changes as well, such as working less or not at all. Be aware of how the changes might affect your income needs and long-term plans

What if I sell my home before I purchase a new one? If the closing date on your old house and the move-in date for your new place do not line up, you may need to find temporary housing. This situation could create a need for short-term financing, but there are a number of credit solutions that can potentially help you cover this cost.

Where can I invest the money I save by downsizing? First, think about where the money is most needed and how it could help you pursue your other goals. Are there any immediate needs you should finance? Could you take a portion of the proceeds from the sale and treat yourself to a vacation? You may have a smaller home now, but your opportunities have expanded.

For more information, contact The Menashe Morley Group in the Rancho Santa Fe office at 858-381-8113.

The Menashe Morley Group
The Menashe Morley Group

The Menashe Morley Group, serving the community for over 30 years: David Menashe is a Senior Vice President and Wealth Management Advisor, and Bruce Morley is a First Vice President and Wealth Management Advisor and John Naviaux is a Financial Advisor for Merrill Lynch, Pierce, Fenner & Smith Incorporated.


This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Always consult with your independent attorney, tax advisor, investment manager, and insurance agent for final recommendations and before changing or implementing any financial, tax, or estate planning strategy. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) a registered broker-dealer, Member SIPC and other subsidiaries of Bank of America Corporation (“BofA”). Banking products are provided by Bank of America, N.A., member FDIC and a wholly owned subsidiary of BofA. “Merrill Lynch” refers to any company in the Merrill Lynch & Co., Inc., group of companies, which are wholly owned by Bank of America Corporation. Investment products: Are Not FDIC Insured, Are Not Bank Guaranteed, and May Lose Value © 2014 Bank of America Corporation. All rights reserved.


Photo by Andy Templeton


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