Couple considers buying $1.2M retirement home in cash after selling business

From Yahoo Finance: 2025-04-21 08:30:00

A couple plans to sell their business for $795,000 and rent their property for $6,000/month. They have $1.2 million in stocks, $400,000 in CDs, and $150,000 in I bonds. Another plan includes selling a $995,000 home, moving closer to children, and buying a $1.2 million home in cash. – Retiring in Jersey

The couple considers their financial situation, including retirement income and expenses. They are advised to assess their retirement lifestyle changes, moving costs, and potential expenses, along with their assets and income sources. A financial planner can help ensure they have a solid retirement income plan.

The couple is advised to determine their retirement income sources and expenses, including savings withdrawals, Social Security benefits, and rental income. They should compare their projected expenses to their estimated income to ensure they have enough to cover their retirement needs. A financial advisor can assist in this process.

The couple contemplates whether to pay cash for their $1.2 million retirement home or get a mortgage. The decision will impact their retirement budget and income plan. They are advised to weigh the pros and cons of each option and consider factors like emergency expenses and investment volatility.

SmartAsset’s retirement calculator can help project the couple’s savings and potential retirement income. They are advised to maintain an emergency fund and consider the psychological impact of owning their home outright vs. carrying a mortgage into retirement. A financial advisor can assist in planning and saving for retirement.

Read more: Is Paying Cash for a $1.2M Retirement Home a Smart Move After Selling Our Business?