Declutter Your Life: How to Downsize After Retirement

As you retire, you deserve to be congratulated. Retirement is a big milestone that gives you the freedom to make more independent life decisions. Your obligations are to yourself and how you want to live your golden years. After living one way for so long, it can be difficult to imagine what life looks like after retirement. If you dream of what retirement looks like, you can achieve it.

Let Go of the Old

The first step of downsizing is to begin to let go of items you don't need. Take inventory of everything you own. A list can help you determine how many boxes you'll need and how long it might take you to reduce your belongings. When making your list, divide your property into three categories: the donate pile, the sell pile, and the keep pile. If you have sentimental items you cannot keep, consider gifting them to your family.

If you give at least $12.06 million in your lifetime, you do have to pay a gift tax on assets you give away. Anything you give away for free or for significantly less than its value may be considered a gift by the IRS.

Choose Where to Go

After your kids are grown, you might not need a home with extensive square footage. Find a property that suits the lifestyle you have planned. For instance, if you own animals, you may want a small home on a large piece of property. If public transportation or walkability is important, consider a condo close to a downtown area.

Before you make an offer, seek pre-qualification from a lender. Make sure you know what you can afford before starting the house hunt. You don't want to waste time looking at homes you cannot afford.

Consider Selling Your Business

You might want to consider selling your business if you plan to move a long distance or if you want to retire fully. Before selling, seek a professional business valuation. A professional can offer an objective perspective on your business's overall value, including the business's assets, inventory, and real estate. Work with an accountant to clean up your company's financial health in preparation for the sale.

Make your business appealing to potential buyers. Update the management and sales systems. Boost your sales and increase marketing, so your company looks good to interested investors. When you find a buyer, prepare a sales agreement. All business agreements should benefit you and the buyer equally.

List Your Home for Sale

Before selling your home, make contact with a real estate agent. Rania Elsherif simplifies the process and limits the work you have to do. Your agent can take care of market research to properly price your property.

Choose the best day to list your property. For instance, if you want to sell a home quickly, list it on a Thursday. On the other hand, if you want to sell it for the most money, list it on a Wednesday. Experts suggest selling your home in late spring for the best possible outcome.

As you retire, you have an opportunity to live more simply. You can focus on living your life on your terms when you don't have an excess of clutter. As you declutter your life, focus on downsizing your personal belongings, selling your business, and finding a new place to call home.

By Teresa Greenhill