Suze Orman: 4 Things Retirees Must Consider When Deciding Whether To Buy or Rent
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Kristopher Kane
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Molly Sullivan
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In a recent discussion on her weekly podcast, financial expert Suze Orman addressed some tough questions facing many folks at or near retirement age. For example, is it better to buy a home in your dream retirement community or to rent? It’s not solely a financial decision, especially for anyone who’s managed to reach their golden years with a good measure of economic security.
Here are four important factors Orman highlighted to help retirees make the best housing decisions for their golden years.
Understand Your Financial Flexibility
Orman emphasized that your financial situation is the most important place to begin deliberations. For example, a couple with no debt, $100,000 or more in savings and $850,000 to draw on in various retirement accounts has a greater number of options at their disposal. For a couple like this, the decision to buy or rent hinges on factors beyond affordability.
Consider Lifestyle and Maintenance
Orman was quick to point out that, as we get older, many of the physical activities we used to take for granted become more difficult. She said that maintaining a home can become increasingly challenging as you age. Even simple tasks like housekeeping and minor home repairs may someday be beyond your previous capabilities.
With that in mind, a luxury senior community that offers maintenance, amenities and other services that simplify or enrich your life may be the wiser choice and allow you to focus on enjoying your retirement.
Evaluate Your Health and Likely Future Care Needs
Orman pointed out that health and access to adequate care become increasingly more important as we get older. Renting over owning may be the wiser choice here as well. Many senior living communities offer both independent living and assisted living as needed, and many employ skilled healthcare staff on standby in the event that an urgent health issue arises.
Balance Your Personal Desires With Real-World Practicalities
Orman said this decision ultimately hinges on personal preferences and practical considerations. For a couple that enjoys frequent travel and a lot of time spent socializing with friends, the advantages of a luxury senior community again outweigh private homeownership. Senior living communities may also nurture an active community life, which can lead to a sense of belonging and provide numerous activities to keep you engaged.
Putting the Gold in ‘Golden Years’
Orman ultimately pointed out that choosing where to live as you get older is a deeply personal decision that you (and your spouse/partner) should discuss at length. She also suggested weighing your options carefully, but she cautioned on the importance of taking proactive measures while you’re still healthy and agile. Orman underscored the benefits of moving to a senior community sooner rather than later, emphasizing the array of activities, the many social opportunities and the often built-in healthcare support such communities offer.
Many seniors may put off decisions like this because they can lead to thoughts about uncomfortable eventualities. This can be an even more emotional decision for long-term homeowners, who are understandably attached to the place they’ve called home for so many years. Orman pointed out that while those are factors to consider, the real goal here is to find a living situation that not only meets your practical needs but also brings greater potential for happiness, freedom and fulfillment in your golden years.
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