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More Retirement Mistakes to Avoid

Last update on: Feb 02 2017

There are more than five retirement mistakes to avoid. Christine Benz of Morningstar added to the five mistakes I linked to in the previous post. Again, these are refreshers of issues we discussed in detail in our past visits in Retirement Watch and will discuss in detail in the future. Read Benz’s capsules here.

2. Failing to Consider Downsizing
This is another one of those issues that’s often fraught with tension between head and heart: From a financial standpoint, moving to a smaller home can help retirees unlock equity that, when added to their retirement portfolios, can improve their portfolio’s sustainability. At the same time, many retirees have an emotional attachment to the homes where they raised their families. (There are also the not-insignificant logistical challenges of moving.)

Of course, moving to a smaller home may not always make good financial sense. Most homeowners’ home equity isn’t what it once was, and T. Rowe Price senior financial planner Christine Fahlund also noted in our recent webcast that downsizing won’t always result in big cost savings for retirees who are staying in the same geographic locale. But for retirees who are concerned about falling short during retirement and running out of levers to pull, moving to a smaller home should at least be part of the discussion.



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