Selling Your Home
When facing retirement, many people choose to sell their homes and purchase smaller places in an effort to get rid of unnecessary space and to save money on utilities. Although downsizing may sound like an excellent idea, now is not exactly the best time to sell your home. Therefore, you may wish to alter your retirement plans and keep your home until the market improves and then consider selling your home and downsizing. If you do decide to sell your home, you are left with deciding whether to buy or rent your next “home.” When searching for a new home on the current market, it is essential for you to determine if now is a good time to buy a new home .When it comes to planning for retirement, downsizing and relocating to another city should be carefully planned to ensure that you can afford the living expenses and the lifestyle of your new life after retirement.
Using Your IRA to Buy a Home
If you are currently planning for a retirement that is still in the distant future, then you may have considered using your IRA to purchase a new home as an investment opportunity. Although now is a great time to be investing in real estate, you should thoroughly understand the rules associated with your specific retirement account before you withdraw money with the intentions of purchasing a new home (or anything for that matter).
When you withdraw money from your IRA account, you are often subject to taxes and penalties. In fact, using your IRA in the wrong way can inevitably result in the disqualification of the IRA and penalties. Therefore, before you make any decisions about withdrawing money from your IRA to purchase a home, make sure you understand what you can and cannot do with your IRA account—including penalties and taxes.
In short, when planning for retirement make sure you understand the current real estate market and national economy and ensure that your retirement plans are still achievable in the current market. For example, those considering selling a home in the current real estate market may wish to wait. Similarly, those looking to buy a new home may need to act now in order to get incredible deals that may not be around much longer. At the end of the day you have to examine your retirement goals and then alter your plan to meet those goals in the changing real estate and economic markets