You’re approaching retirement age sooner rather than later but the amount you have saved in retirement is not enough. At this rate, there are no signs of you stopping work to retire and your Golden Years won’t be what you thought. If this sounds like you, you are not alone.
The Economic Policy Institute found that as of 2013 very few Americans had any retirement savings at all. The mean retirement savings as of 2013 for 50-55 year olds was $124,831. This number increases a bit to $163,577 for 56-61 year olds.
Considering that many retirement experts say you should save at least a million dollars, this number is painfully low for those hoping to retire. If you want to access more cash to boost your retirement savings, what can you do? Of course you can save more of your income but if you need a significant boost you might consider selling your house. Here’s what to consider if you’re thinking of selling your home to boost your retirement savings.
How much is your home worth?
Before rushing to sell your home, you want to know how much is your home actually worth. You want to know the exact number so you can decide if it’s worth it to add to your retirement savings or not. If your home is a significant asset, that can help you reach your retirement goals. If it’s not worth as much as you want, it may make sense to keep it instead of selling it and renting elsewhere.
However, the housing market is cooling down and if you’re more inclined to sell, you might consider doing so before a full-fledged recession.
Is your home paid off?
Whether your home is paid off or if you still have a mortgage can affect your decision in a few ways. If your home is paid off, you could net more profit, however, you still need a place to live. You will need money to rent a new place and move.
If you still have a mortgage you may take less of a profit when selling the home but maybe renting would be more affordable, depending on the area, and it will help you reach your financial goals with retirement.
What is your current living situation?
A home can help you bring shelter and familiarity to your family. If you still have kids at home that may sway your decision to keep the home. But if you are an empty nester and nothing is really tying you to the home anymore, that could mean more freedom to sell and do what you want with it.
How close to retirement age are you?
Selling a large asset like a home can be a huge decision and shouldn’t be made lightly. You want to consider all the pros and cons. If you are wanting to sell your home to boost your retirement savings, look at how close you are to retirement age. Do you have many years of working left or are you currently around retirement age and selling your home can help you get there faster or help you be more comfortable?
Let’s say after answering all these questions, you (and perhaps a trusted professional) decide selling your home makes the most sense to help you reach your retirement goals sooner. You know that maintenance and repairs are costly and you know for your situation, you could use the money you get from selling to help pad your retirement savings.
You might work with a realtor, which will eat up six percent. Since the housing market is stalled, your home could be on the market for a while. On top of that, if your home isn’t in the best shape it could be tough to sell.
Working with Sundae can help you sell your home as-is for the best price. No realtors. No investors. Just a company that wants to help homeowners get the money they deserve for their home, without all the extra hurdles. We work at a larger scale which helps us stay competitive. Aside from guaranteeing the best price, we can also give you $10,000 in cash advances to help you move somewhere else during this process.
Retirement is a long-term financial goal but if you don’t have a ton of time on your side or you’re already retired and need more cash, selling your home can make sense. It’s a big decision that should be made carefully but if you go this route, there are options like Sundae that can help you make the most of the situation.