Why Should I Think About Retirement Planning When Buying A Home

Why Should I Think About Retirement Planning When Buying A Home?

Buying a new home often evokes a feeling of excitement and a sense of new beginnings for individuals. Are you buying a larger home in a highly sought-after neighborhood? Downsizing to a smaller home as you enter the “empty nest” phase of life? Or are you finally investing in that dream vacation home? Whatever the case may be for this hefty purchase, home buying season and a “fresh start” is an ideal time to think about age and retirement planning for the future for yourself and loved ones.

While searching for a new home, there are important factors to consider. First, is this a home where you or an elderly person living with you could "age in place?” Aging in place is a term denoting that you will age in the home of your choice. If so, consider the home’s location and, if feasible, consider a location close to a strong network of family and/or friends to check in, if necessary. An age appropriate, practical floor plan is another factor to consider when looking for a new home. For example, try to avoid steep driveways and multiple staircases if considering a long-term investment property. Additionally, be cognizant of having options for nearby public transportation or the accessibility to walk to places – location is key!

Because of the abundance of new technology being developed every day, finding a home to “age” is not as entirely difficult as it was years ago. The use of GPS and Bluetooth has helped those who are aging to stay in their own home (or the home of a loved one) as they continue to age. The development of video monitoring, smart watches, telemedicine and use of Skype and FaceTime have immensely helped individuals to stay in their houses, while all the while feeling safe that loved ones are near in some capacity.

Although an exciting process, no matter the age, the financials of buying a new home can often also cause a feeling of stress for the home buyer. Long term costs of the home must be considered, as well as state taxes in the location which the home is being purchased. Some home buyers consider mortgages or a securities backed line of credit in lieu of tying up cash up front. If the home is being left to family members, estate and inheritance taxes need to be fully accounted for. For this reason, home buyers can often feel a bit overwhelmed in what is supposed to be an exciting life event and are left feeling at a loss with how to handle the financial logistics. However, this is where we can help!

The SSG Executive Advisory Group of Raymond James can provide a full range of wealth management services to help with all of your home buying needs. From estate planning to retirement planning, to helping with all of your home investment and financial needs, our team stands ready and willing to take your stress away during this exciting and life changing time.

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Raymond James and its advisors do not offer tax, legal, or mortgage advice. You should discuss any tax, legal or mortgage matters with the appropriate professional. A line of credit backed by securities, such as a Securities Based Line of Credit, a structured line of credit or a margin account, may not be suitable for all clients and investors. Any opinions are those of the author and not necessarily those of Raymond James.