In a special report in today’s Wall Street Journal about retirement planning, the editors suggest that moving to a smaller home may not work out as intended for many baby boomers.
The Journal article seems targeted mostly at retirees who do not relocate across state lines and who have substantial mortgages on their current homes. A “fragile” housing market that makes it difficult to sell a
The article also indicates that old habits die hard, and even though a couple may downsize their square footage, they still cling to their worldly goods and expensive habits of yesterday. That means, according to the Journal, that the new, smaller house can get crowded and that savings are eroded faster than anticipated. Even if couples don’t drag along all their worldly possessions to their new 2,000 square foot home, things can feel pretty crowded after moving from 4,000 square feet of space.
I found the article vaguely insulting, especially after working over the last week with a few couples who have done their homework and know exactly what amenities they want both inside and outside the gates of their next home. The Journal seems to have found only those who rush blindly into a new living condition without first checking how far they will be from restaurants and movie theaters, or whether the spouse they have lived co-habited with for 40 years will now be too close for comfort in their smaller home. Moreover, the report features mostly people who moved only a few miles from their primary home, thereby denying themselves the benefit of a lower cost of living in a southern U.S. location.
If there is anything to learn from the article about buying a golf home or any other house in retirement, it is to do your homework first. We are happy to help.