From Yahoo Finance: 2025-05-24 09:06:00

A retired couple is considering selling their Pennsylvania home for $1.2 million due to mobility issues. They have $2.5 million in retirement accounts, generating $80,000/year, plus other income sources. They face potential tax implications and should carefully plan with advisers. They should also consider future cash flow and unexpected homeowner costs.

Seeking to buy a new home, the couple may need to sell stocks, triggering capital-gains tax. They must also evaluate how withdrawals could impact Medicare benefits and daily expenses. Financial advisors suggest planning carefully to maintain investment income and weighing the impact on future cash flow.

To maintain their lifestyle, the couple must assess potential reductions in investment income and budget accordingly. Unexpected homeowner costs, such as property tax increases, need to be factored in. They should also consult real estate agents specializing in downsizing to navigate the market effectively and negotiate commissions.

Considering the current buyer’s market, the couple could secure a good deal if they act swiftly. Future-proofing their living situation is crucial, and making hasty decisions could limit their options. It’s essential to weigh all financial implications and plan accordingly for a smooth transition.

Read more: My wife and I are 73 and retired. Can we afford a $1.2 million home?