Is Trading Down a Worthy Trade?
With the onslaught of the housing market recession, the age-old retirement strategy of “trading down” has become ineffective. The housing market crash has had a sever effect on high-end homes, causing the difference in price between the upper and middle markets to decrease. If the smaller homes are not really much cheaper, what is the point of moving at all? It is this revelation plus the overload of cash-out refinancing that have made retirees question the trading down process. There will always be complicating factors in the home market, but fortunately we now have access to tools and strategy to see us through. Taking time to plan your financial future can be the key to smooth transition within the housing market. This Wall Street Journal article by M.P. McQueen gives quality insight to this topic and links to Laurence Kotlikoff’s helpful financial planning website.
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@ 12:37 pm
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