Moving Mom Monday: Downsizing Baby Boomers – Is It Better to Rent or to Buy?

Baby Boomer Couple Talking with Financial Advisor

In the Washington Post article Downsizing baby boomers face a key decision: Is it better to rent or to buy?, author Michele Lerner writes that the rent-or-buy decision affects people nearing retirement:

“The rent-or-buy decision is more commonly thought of as a dilemma for young professionals establishing their households, not people approaching retirement. But whether it’s a financially savvy decision or simply the only solution when they can’t find a suitable place to buy, some baby boomers are choosing to rent an apartment downtown when they downsize.”

Some advice:

“Understand your goals. Many baby boomers who think they want to downsize into a city condo are surprised that it will cost them as much to buy a condo as they would pay for a house, says Ellen Sandler, a real estate agent with Evers & Co. Real Estate in Washington. ‘Some decide to rent to get the services and lifestyle they want, especially if they have enough assets to throw off enough income to pay the rent,’ Sandler says.

Investment options for renters. Tim Hewitt, a senior wealth adviser with the Wiley Group in Conshohocken, Pa., as well as a licensed real estate agent with United Real Estate in Wayne, Pa. says that 80 percent of his clients don’t want to rent because they don’t want to lose control over their home to a landlord and don’t want the possibility of paying higher rent in the future. ‘Those clients that choose to buy tend to make a large down payment or buy with cash from the equity from the sale of their home. and then try to cover their property taxes, insurance and maintenance costs with their Social Security or pension income,’ Hewitt says. ‘They can use their investment income for discretionary spending.'”

Read more at Downsizing baby boomers face a key decision: Is it better to rent or to buy?.

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DAYNA WILSON: As a real estate agent I have been working with homebuyers and sellers throughout the East Bay communities of Layfayette, Moraga, Orinda and Walnut Creek since 2009. As a Certified Senior Housing Professional (CSHP) , I have special knowledge about everything from reverse mortgages to the importance of universal design. I can tap into my network and put you in touch with my team of qualified home inspectors, movers, attorneys, CPAs, organizers and other experts. I have all the resources and knowledge to simplify the transaction and eliminate the anxiety of selling your home.

Call me today to talk about your real estate concerns. I’m here to listen: 925.788.6582

Freedom Friday: How Senior Couples Can Retire Without Drama

Baby Boomer Couple in Retirement

In the U.S. News & World Report article, How Senior Couples Can Retire Without Drama, author Maryalene LaPonsie writes that worlds collide when senior couples retire and are suddenly together 24/7:

“You’ve clocked out of work for the final time and are heading home to your spouse. The kids have left the nest, which means it will be just the two of you. Sounds like the beginning of a second honeymoon, right?

However, the reality can be much different. A 2017 report from the Pew Research Center found gray divorce – that is, divorce after age 50 – increased 109 percent from 1990 to 2015. Even couples who stay together may find their remaining years marked by conflict.”

Fortunately, spousal conflict after retirement is not a given. Couples can head off trouble by being proactive and open-minded about their next stage of life.

Start the discussion early. Spouses can become resentful if they have plans for retirement that don’t align with those of their husband or wife. Clear communication is essential to creating realistic expectations about what life will be like post-work. Unfortunately, many couples wait too long to have these talks.

Have a purpose for retirement. Exploring new interests before retirement can help couples determine the goals or pursuits they will have after leaving the workforce. Jared Snider, senior wealth advisor at Exencial Wealth Advisors in Oklahoma City, says his most successful retired couples have clearly defined purposes for both themselves and their relationship. ‘They have thought it out ahead of time,’ he says.

Have a budget for retirement. Money issues can be the cause of significant strife in some marriages. ‘You’ll have one spouse that lives for the moment, and the other that doesn’t want to throw a nickel around,’ says Chris Heerlein, investment advisor representative and partner at REAP Financial in Austin, Texas.”

Read more tips at How Senior Couples Can Retire Without Drama.

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DAYNA WILSON: As a real estate agent I have been working with homebuyers and sellers throughout the East Bay communities of Layfayette, Moraga, Orinda and Walnut Creek since 2009. As a Certified Senior Housing Professional (CSHP) , I have special knowledge about everything from reverse mortgages to the importance of universal design. I can tap into my network and put you in touch with my team of qualified home inspectors, movers, attorneys, CPAs, organizers and other experts. I have all the resources and knowledge to simplify the transaction and eliminate the anxiety of selling your home.

Call me today to talk about your real estate concerns. I’m here to listen: 925.788.6582