$100K+ Retirement Income
If you are finding ways to increase your retirement income, consider the potential benefits of selling your home and relocating to a more affordable area. According to a recent study by Vanguard Group, the typical homeowner has saved nearly $100,000 in 2019 by selling their primary home and moving to an area with lower home prices.
For some retirees, the payoff can be bigger, if you purchased a home in a region where home values have appreciated rapidly over the past few decades, such as the West Coast, Northeast, or select states like Arizona, Colorado, Florida, Nevada, and Utah, may be able to unlock substantial capital gains by selling your home and relocating. Selling your home and downsizing may be a channel to shore up retirement funding.
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According to a published article in Go Banking Rates, this strategy doesn’t fit everyone. How big or small money you can get in retirement from selling your home depends on some factors, including where you live. If you own a home in Midwestern or Southeastern states where home values have not risen nearly as rapidly as elsewhere, you might lose money on the transaction.
Another thing to consider is whether Social Security benefits would have an impact on you. Some state tax Social Security income, which could significantly impact your retirement income. If you move from a state where Social Security benefits are not taxed to one where they are taxed, your benefits could take a big hit. It’s essential to research the tax implications of moving to ensure that you make the most of your retirement income.
In conclusion, selling your home and downsizing can be an effective way to increase your retirement income. However, it’s important to carefully consider the potential benefits and drawbacks of this strategy before making any decisions. Make sure to research the housing market and tax implications in the areas you’re considering before making a move. With careful planning and consideration, you can unlock the potential to make $100K or more in retirement income.
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