March 7, 2016
Its the sound that hits like an Earthquake
This week I am going to stay away from main stream media and political cartooning and just have a few words to say on this topic
I would like to express my deep loathing for this word and for what it generally implies
Downsizing is a buzzword used to describe selling out your existing place of residence for a smaller home
If you are doing this as a personal choice that aligns with your retirement plans of moving to a favored holiday destination to or away from your adult children or perhaps to that dream home then this is a good well thought out move
If however "Downsizing" is in your current decision pendulum for how to survive in the future based off your current financial situation and is the result of 30 years hard labor to pay down the family home and then "Sell Up" and move into a trailer ... Then that is just not acceptable
From the people I have talked to this is a fairly common thought process or it is just thrown on the "Dont Look at it Pile" and it will sort its self out..
Well when you retire from working life at a standard you will need to support your self for the next 20 years, and at that age these can become the most expensive years of your life.. and I am not talking Jet ski's from the back of your World Cruse Ship, those options and problems are for the well prepared, for you it medical expenses and food, So unless the family home is now worth $2 million and we are purchasing an new home for 500k leaving yourself $1.5 million then this is no option for you at all! “By failing to prepare, you are preparing to fail.” ― Benjamin Franklin
This is just the financial aspect, the personal ramifications of being forced to sell the family home just to survive is devastating, this is the home you have built with your partner, raised your children and awoken in the morning recovering from one to many at the neighborhood Xmas party in... All in all you are speaking about the only material possession in your life that IS a part of your family!
So I say to any of you who have the next 10 or 20 years of work in front of you, that have this in the back of your mind as an option then I say to you .. Unacceptable!!
You have options and you have choices, information is free so pick up a phone or send smoke signals but do something, As our friend Benji mentioned above the worst thing you can do is fail to prepare
Lets get you situated that if we are "downsizing" its like the Clampett's and we are heading off with Granny strapped to the roof and the new neighbors living in fear of our elevated status
*If this is some consideration for you though, please check this link out and i hope it will be helpfulhttp://www.realestate.com.au/blog/a-guide-to-downsizing-for-retirement/