Current or future retirees, do not sell these assets!
If your birth year is between 1946 to 1964, you’ve probably retired or about to become a retiree. After years and years of hard work, you’ve probably managed to save some money or acquire some assets like most people that are part of the baby boomer generation.
If that’s the case, good for you! The value of those assets or investments has probably increased so what better time than retirement to reap the benefits of all that hard work. A logical step would be to sell, take the money and life comfortably for the rest of your life. But is this really helpful in the long term?
Financial experts agree to disagree. That’s because life can be unpredictable, even during retirement. There are all sorts of challenges and costs that have to be paid, like medical ones, and selling some of your assets might solve many problems. But so is keeping them. Here’s what assets financial specialists warn baby boomers against selling, for their financial and emotional stability.
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Family home
After their children moved out, many retirees find themselves living in a place that’s way too big for their needs. A sensible decision might be to sell and move to a smaller house. A smart decision, however, would be to downsize and rent the remaining rooms or even the entire house.
It’s a good move to own a property, as its value will surely increase in time. More than that, you can leave it to your loved ones when you’re gone.
See also: 9 Benefit Programs for Seniors to Lower Their Expenses
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Real estate investments
If you’ve invested in real estate, you can rest assure that your retirement years will look better. Such an asset can bring you a constant income and it is an investment that appreciates in time, slowly but surely. Therefore, before deciding to sell, think about the risks and rewards of such an action.
Check this out: These 5 Purchases Pay for Themselves in Less Than a Year
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Collectibles and antiques
Antiques and collectibles are also type of assets which can appreciate over time. Apart from increasing in value, such items may be important from a sentimental point of view.
Before you retire, make sure all your collectibles and antique items are evaluated. This way you can have an idea of their financial value. To make sure the appraisal is accurate, you can go to reputable auction houses like Heritage Auctions where the evaluation and authentication services are free of charge.
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Stocks and bonds
If you’ve been saving or investing so that you can have a comfortable life in retirement, good job. If you’ve invested in stocks and bonds, just because you’re retiring, does not mean you should sell them. On the contrary, hold on to them as they can become a steady and constant means of revenue when you need it the most: in retirement, when you’re living on a fixed income.
Not to mention you can leave them to your children, providing them a financial support even after you won’t be with them anymore.
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Insurance policies
If you suffer some sort of financial problems, you may be able to find a company to take over your life insurance payments. This sort of move will also give them absolute rights over the benefits provided by the insurance, after your death. This means your heirs will not receive anything.
Rather than give up all your benefits, try to find some loopholes or other feature in your insurance policy that might help you keep it and its benefits.
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Pension plans
Another secure stream of revenue is your pension. It can help you live a comfortable life in retirement, provided that you keep it instead of selling it. Experts agree that pensions represent an important source of income after you stop working, so why not make the most of it?
To make sure everything is in order and you are fully covered during retirement, check lump sum and annuity options, in terms of the benefits you can get in each situation. Also, verify the legal frameworks and conditions for pensions, so that you can enjoy all their benefits.
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Gold and precious metals
If there’s one thing that inflation cannot touch, or at least not to the extent that other assets are, it’s gold and precious metals. You cannot go wrong with these ones. It is advisable to own such metals as they can be quite helpful in times of economic turmoil.
If you have gold or other precious metals, don’t sell them in hopes of making extra money for retirement. Instead, hold on to them and store them in a safe space. Don’t forget to also insure these assets.
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Art and memorabilia
Art and memorabilia can also be considered safety items, as they are also not impacted by inflation. They can represent a source of revenue at some point, even more so with their value increasing over time.
Experts recommend keeping your art and memorabilia with you. However, have it appraised and insured so that you can make the most of it when or if the time comes.
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Family heirlooms
They might not hold much value to the untrained eye, but family heirlooms can prove to be quite valuable. Apart from their sentimental value to you and your family, heirlooms can turn out to be true lost treasures. However, selling them might not be the best option. If you can keep them, it’s best that you do, so that your heirs and future generations can also enjoy them.
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Business interests
If you’ve been growing your own business and want to sell it before you retire, you might want to reconsider. Yes, it might seem like a logical step to take. But holding on to your business might prove to be a better strategy, financially speaking, as it can secure ongoing revenue.
Your business can help you stay in the game, and also be passed on to your heirs, when the right time comes.
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Retirement accounts
The money you can get from your retirement accounts might come in handy during retirement. However, an early withdraw might come with certain penalties and a reduced final amount. Before deciding to withdraw your money, check your options carefully. Experts advise on keeping your money anchored to a retirement account for as long as possible; however, if you don’t have a choice, try to draft a spending plan and stick to it so that you don’t end up penniless in your first year of retirement.
See also: 10 Things Frugal People Never Do and Neither Should You
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Vehicles and recreational equipment
Just because you’re retiring, does not mean you should no longer own cars or recreational equipment. As a matter of fact, retirement comes with much more free time. And what better way to fill it up than roaming the country roads in an RV?
Sure, you have to take all costs into consideration, as owning and maintaining more than one vehicle can be costly. Before you make a decision, either to sell or to keep, consider aspects such as value depreciation, maintenance costs, storage area etc. While selling might bring some extra income to the household, keeping them might make your retirement years more fulfilling and satisfying.
