When To Downsize For Retirement

Financial Advising

One of the advantages of working with Matt Dixon, a Registered Financial Consultant in Greenville, SC, is the ability to get personalized information on your retirement plan. Unfortunately, when people use a do-it-yourself method of retirement planning, they often make mistakes that cost them in taxes and in retirement savings.

It is essential to speak with Matt Dixon and understand the implications of any type of downsizing or major asset sale. Unfortunately, selling a current home and buying a much smaller home or downsizing to a condo or apartment can leave sellers with extensive capital gains taxes that can increase their overall tax bracket even if they are in retirement.

Considerations with Pricing

One common factor that Matt Dixon often talks to his clients about is the ability to value the current home price. Homeowners typically overestimate the value of their current home while underestimating the price of a small home or the cost of living in an apartment or a condo.

Accurate information on these two different issues is essential before making any changes. Working with a Greenville, SC, real estate agent is important to get accurate information. It is also important to remember that the market can change dramatically even in a few months, and a home sale is never guaranteed.

Offsetting Taxes

There are options that people in Greenville, SC, can use to offset the taxes on a home sale. These strategies can include tax-loss strategies if there are losses in stocks, bonds, or mutual funds, but it must be done correctly to avoid penalty.