A couple holds a "for sale" sign with a "SOLD" sticker across the surface, representing a couple who decided to downsize their home.

Do you need to downsize? A quick quiz

posted on

January 19, 2026

Perhaps you’ve seen the mountains of dust accumulating in that den you don’t go in anymore or witnessed tumbleweeds passing through that extra, extra bedroom. Or maybe you’ve just looked at your electric bill lately…and gasped. No matter the reasoning, if you’ve got more space than you really need you’ve probably considered downsizing into a smaller dwelling at some point. Here are questions to ask yourself when you’re considering the change.

What is my equity position in the current home?

Having a positive equity position in your home is a big deal, since it’ll make it a lot easier financially to get into a new place. If you sell the home and receive less than what you owe on the mortgage(s), you’ll have to use your own money to make up the difference or face the consequences of a short sale. In other words, if you’re in a negative equity position, downsizing might not be your best option.

How much money will I save on monthly housing payments?

If you’ve given serious thought to downsizing, you’ve probably looked at what it would cost to live in a new place. When you’re comparing that number to what you currently pay, don’t forget to include categories like taxes, maintenance and repairs for the future. Also, pay close attention to utilities since there can often be a dramatic difference between what you’ll pay in a larger home and what you would pay in a smaller home, apartment, or condo. Sometimes these expenses can tip the scales so much that downsizing is the better option.

Does my current neighborhood still fit my needs?

It’s not just the house that should be weighed when making a decision on downsizing. If you moved into a neighborhood because it had great schools or lots of wide-open space, as you get older those things may not matter anymore. Downsizing could mean being able to find an area that’s better for what you want now while also saving you money.

Will I be able to maintain the property in the years to come?

Maybe at one point you were gung-ho about climbing ladders to do fix-it projects or spending all day on a yard project. But as you get older, you may not be able to maintain the property like you once did. This could mean increased expenses in the future, or if you can’t afford to hire someone to do these things, it could result in the property quickly losing value as it falls into disrepair. Sometimes it’s best to sell a home when you’re still able to keep it at its most marketable.

What’s my relationship with my stuff?

Many people find it liberating to get rid of a good deal of their accumulated belongings since they feel less controlled by their possessions. Others have sentimental or practical attachments to certain items that require a fair amount of space to store. Either way, think about what you would really need to have with you in the home and then decide how much space it’ll take going forward to keep it.

What are my space needs for guests?

You may enjoy having a larger space to host family members or friends who come to visit. Think about the maximum number of visitors you have at one time and if you can accommodate them in a smaller space. Many people find that even in a smaller place they’re still able to have plenty of guests.

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. All loans subject to approval. Actual rate and terms may vary depending on individual’s credit history and other factors. Membership required. SRP is federally insured by NCUA. Equal Housing Lender. NMLS ID #612441.

Article Credit: BALANCE 

A piggy bank stands next to a four stacks of coins with increasing heights. On top of each stack, blocks spell out "401k," illustrating saving for retirement with a 401(k).

The 411 on 401(k)s

posted on

September 15, 2025

As pension-style retirement plans have fallen by the wayside, the 401(k) plan has become the go-to option for many companies looking to help employees save for retirement. The 401(k) enables workers to set money aside, and not pay taxes on it or its earnings until they retire and begin withdrawing funds from the account. Here are some key things you need to know about these tax-advantaged accounts.

Contribution amounts

One of the best things about tax-deferred retirement accounts like the 401(k) is that you make contributions pre-tax, so in addition to saving for the future, you’re reducing your income taxes right now. But there are limits, set by the IRS, to how much you can put away each year. These limits do change from time to time, so perform a quick search engine query to learn the latest numbers.

If your company automatically enrolls employees in their 401(k), the default contribution amount probably won’t be anything close to the maximum, but you can probably elect to contribute more. If contributing the maximum is not doable right now, one smart strategy is to funnel any future salary increases into your 401(k) until you reach the maximum contribution.

Matching funds

As part of their employee benefit package, many companies will match employee contributions to a 401(k) up to a certain percentage. For example, say you make $50,000 a year and your company matches up to 3% of your salary. When you contribute 3% (that’s $1,500) to the 401(k), the employer match of that amount boosts your annual investment to $3,000. If your employer offers matching funds, be sure to contribute at least as much as you need to get the full match. Otherwise, you’re leaving money on the table.

Vesting

Any money that you contribute to your 401(k) is completely owned by you, from the start. Though your investments may go up or down, you still own it when you leave your employer. Some companies, though, impose “vesting” requirements on the matching funds they contribute to your account. They may, for example, require you to stay employed for a set amount of time before you’re entitled to (or “vested” in) the funds they contribute to your account. If you leave your job before fulfilling your employer’s vesting requirements, you may receive only a portion (or none) of the matching funds.

Investment options

Most 401(k) plans have several options for investing your retirement savings and some may even offer the services of a financial advisor to help you choose the right mix for your age and investment goals. As a general rule, though, the younger you are, the more risks you can take because you have more time for make up for potential losses. As you get closer to retirement, you’ll probably want to shift toward more conservative investments. Whatever your age, though, it’s important to be diversified – which is just a fancy way of saying “don’t keep all your eggs in one basket.”

Article Credit: BALANCE

An image illustrating building financial security for retirement - two wooden figurines representing an older couple stand next to a piggy bank.

10 Tips for Financial Security After You Retire

posted on

May 1, 2025

Not that long ago, people looked forward to retirement as a time of relaxation and leisure when one might travel the world or take up a new hobby. Increasingly, however, people preparing to retire are doing the math and realizing that the future doesn’t look so bright financially.

The following 10 guidelines will help you enjoy a more comfortable retirement even in an uncertain economy.

1. Have a Plan But Stay Flexible

Retiring successfully takes planning. Take an honest inventory of your assets, savings, investments, and set some goals for your retirement. Consider what you’d like to be doing, where you’d like to live, who you want to be near, and what kind of lifestyle you prefer.

While you need a plan you also need to be flexible and open to unexpected changes. Keep yourself informed about the latest developments in areas such as the cost of living, tax laws, investments, real estate trends, and other areas that are likely to have an impact on your life.

2. Watch Your Spending

Overspending is a common mistake for many retirees. The paradox about not working is that you have less money coming in but more time to spend your money. It’s natural to want to fill up all your free time with eating out, shopping, traveling, and other leisurely pursuits. It’s important to set a budget and stick to it. You don’t have to cut out all entertainment and treats. However, make sure you don’t spend beyond your means.

3. Find New Sources of Income

It’s an unfortunate fact that people in the United States and many other countries are postponing retirement because they can’t afford to stop working. Some employees, meanwhile, are forced into retirement. There are, however, alternatives besides working full-time and complete retirement. Here are a few possibilities.

Get a part-time job. This can actually be good to keep you active as well earning money.

Start a business. There are many businesses you can start from home, from selling items on Amazon or eBay to providing freelance services.

Make money from your property. If you have extra space, you might rent out a room or set up an Airbnb.

4. Get Out of Debt

Reducing or eliminating debt is one of the best ways to improve your financial situation. Debts are especially draining after you retire. Do whatever you can to cut down on what you owe, especially high-interest debts such as credit cards.

Paying off debt provides two main benefits. On the one hand, it reduces the burden of making high payments when your income may be decreasing. Additionally, you have a chance to improve your credit score which is useful if you want to apply for a mortgage, business loan, or another type of loan in the future.

5. Don’t Touch Your Retirement Account Early

Withdrawing money from your retirement account early may be tempting but it’s seldom a financially wise decision. You also incur tax penalties if you take money out of an IRA or 401K before retirement age (currently 59.5). If you’re thinking about raiding your retirement account, make this an absolute last resort. You’ll be glad you held out a few years from now.

6. Downsize Your Lifestyle

For most people, mortgage, rent, utilities, and other home-related costs are their costliest expenses. Consider how much space you need and whether it might be practical to downsize. If you have your own home, you could sell it and buy a smaller one or relocate to an area with a lower cost of living. Renting or moving to a condo helps you cut down on home maintenance costs. An extreme way to reduce your cost of living is to retire to a country with very cheap living expenses such as Ecuador or Panama.

There are other ways to downsize and simplify your lifestyle aside from housing. Consider moving to a location where you don’t need a car. With ride-sharing services and short-term rental options, more people are finding that owning a vehicle is an unnecessary expense.

7. Take Care of Your Health

Medical expenses are one of the biggest reasons people fall into financial difficulties later in life. Aside from getting regular checkups, pay attention to your habits and lifestyle. If you smoke, drink heavily, use drugs, or don’t exercise, consider transforming your lifestyle.

Bad habits tend to catch up with you when you can least afford it. Eating a healthier diet, exercising regularly, and avoiding harmful substances will cause you to feel better while also saving you money on health care costs. You can also manage health expenses by researching the most advantageous health insurance options.

8. Invest Wisely

It’s never too late to start investing or to improve your investing strategy. As a general rule, you should invest more conservatively as you approach retirement.

Diversifying your holdings is the best strategy. Spreading investments between small and large-cap stocks, bonds, mutual funds, and real estate trusts increases your chances of reaping steady returns. An annuity can provide you with predictable payouts after you retire. If you need help, consult with a CPA or investment counselor.

The other side of the coin is to be wary of dubious investments. Older people are often targeted by scam artists selling fraudulent “investments.” Even legitimate investments that are highly speculative such as futures, Forex, cryptocurrency, and others carry significant risks. Make sure the bulk of your holdings are in more stable assets before you start speculating.

9. Don’t Be Overly Generous

Many older adults are victims of their own generosity. As younger people face rising housing and education costs, they sometimes turn to their parents and grandparents for help. While it’s great to help your kids buy a home or pay for your grandchildren’s college tuition, make sure you don’t overextend yourself. Before you give away large sums, look into the future and ask yourself how this will impact you 5 or 10 years from now. Sometimes you just have to say “no” even if it’s painful.

10. Take Advantage of Senior Discounts

There are many financial advantages to being a senior (though the exact definition differs depending on the situation; it may be 55, 60, 62, or 65). If you’re not a member of AARP, join now and learn about more benefits. Your local public library is also another good place to learn about programs. Before spending money on anything, from healthcare to travel to transportation, find out if you can get a discount based on your age.

These are some ways to help you manage your finances when you retire and even before. It’s important to look at your situation and devise a workable strategy. People get into trouble when they live day-to-day and ignore impending problems.

Article credit: BALANCE

Tag: retirement