What Is Downsizing?

When people think of downsizing, the first thing that comes to mind is “Oh I’m going to live in a smaller place“. While that may be true in most cases, it doesn’t always mean a loss of freedom.

Downsizing is a process. You review your situation and make adjustments to meet your needs.

Those needs may be current or for the future. You may choose to sell your current home or you may choose to rent it. You could move into a similar-sized home that costs less in a different area. Some people choose to “downsize” to more luxurious places. You may simply be looking to free up cash from your existing home. The point is, that there are always choices to make. The decision to downsize your home involves a lot of factors.

There are two general categories that most people fall into. You fall into the first category if you are able to manage your day-to-day activities without help. In this case, you are self-sufficient and can live independently.

In the second category, you need some help or caregiving support to manage your life. The level of help you need depends on your situation. Often, it is a reaction to a life-changing event. Such as retirement or a physical change in your life. There are a variety of options available in this category to choose from.

When you plan to downsize matters. But what matters most is that you consider your options before making that decision. The best advice we can give you is to discuss your plans with a qualified professional. For example, a Financial Advisor can give you a more in-depth look at your financial affairs. If you become incapacitated or die, someone needs to take care of your assets.

An Estate Planner can help prepare you on how to deal with your assets in this event. There are many other individuals who can help you plan your move. So before making that decision, talk to the appropriate professionals. Arm yourself with all the necessary information to make an informed decision