- If you have a second home, you probably have double or more of everything.
- Downsizing your stuff prior to retirement will give you a feel for what it’s like to live with less, but it will also give you a good idea of what your expenses will look like.
- If you test out a downsized lifestyle prior to retirement, you can save yourself from making a costly mistake that could send you back in to the workforce after you’ve retired.
The late, great, George Carlin had this funny routine where he said, “Have you ever noticed that their stuff is s*** and your s*** is stuff”. When we start looking at things in our life that we’ve accumulated, we need to be honest with ourselves: a lot of it is just plain junk.
Why do I say that? Well, many of you have a second home. It might be a place you want to permanently move to once you have completely retired. If you have these two homes, most likely, you’ve got doubles of everything, maybe even triples or quadruples.
A lot of things change when you retire. Something you might consider doing is some pre-retirement planning where you take that first home you’ve been living in, which is probably near your workplace, and you downsize it to get rid of seventy five percent of what’s in it. It will help you see what it feels like without all that stuff, but also, it will help you get a feel for what your expenses will be.
This will help you get clear about what it costs to run two homes prior to your retirement. If you try to do it after you retire, you might find that the cost is too much and perhaps you retired too early and you may have to go back to work. Nobody wants to do that!
It’s always good to test out something before you make a permanent decision. This is especially true for things like real estate as it’s quite expensive to buy and sell. If you test in advance of retirement, you can save yourself the pain of making a costly mistake as you’ll know what it really costs to live and do the things you want to do in retirement.
Until next time, enjoy. Gary
Learn more about TransformingWealth™ , our proprietary approach, designed to get your arms around the big picture so you can make informed financial decisions. Ask Gary about Coyle’s TransformingWealth Preview Meeting, and schedule a complimentary consultation and start living the Good Life Managed Well™.
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. He has over 30 years of experience and is the author of Changing the Conversation, The Wealth Sanctuary and co-author of The Business Battlefield. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
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