Seniors Considering Downsizing: Your Financial Plans, 5 Key Points
JoJo on Apr 17th 2007
(Part 3 of a 5-Part Series):
If you don’t have one already, you should meet with a financial planner to determine the best course of action to plan your future investment portfolio. In addition, a meeting with your tax accountant is beneficial in identifying ways to reduce your tax burden. They can also give you advice on which files and records you can discard in preparation for the move. When reviewing your financial plans, consider these key points:
- Is it time to cash in on your stocks, mutual funds, bonds, etc?
- Examine your portfolio mix to see if it’s at the right risk level for you.
- Do you need to rollover a 401K, take distribution or setup a SEPP account?
- Review your need to setup an emergency fund in a passbook savings or CD account.
- Protect your home equity by:
§ Transferring your existing tax base under Prop 60 & 90 (California only)
§ Excluding capital gain tax under IRC 121 § Deferring capital gain tax by doing an IRC 1031 like-kind exchange on your investment property.
I can’t stress enough how important it is to do this financial review. You want to make sure you have solid plans to take care of your needs after retirement.
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If you need help with your move in the South Orange County California areas of Laguna Niguel, Aliso Viejo, Laguna Hills, Mission Viejo, Lake Forest, Rancho Santa Margarita, Dana Point, San Juan Capistrano, San Clemente, Laguna Beach, Corona Del Mar or Newport Beach, please contact me to help you with your transition as I am a qualified Senior Real Estate Specialist.
