Retirement & IRAs

Downsizing Your Home

You're finally there. You're enjoying retirement. And you may be thinking of other ways to simplify your life.

Downsizing your home and selling unwanted furnishings may help you accomplish this. A smaller space can mean less responsibility and less clutter. And if you donate or sell your gently used items, you may benefit from a tax deduction or a cash boost.

But getting by with less is often easier said than done, especially when you may be parting with a lifetime of possessions. Here are a few things to consider to make cutting back a bit less painful:

Find an Agent

Plan

Even if you're just thinking about moving, you can get ahead of the game by looking at your possessions and getting rid of things you can live without. If you know what your future living space will be like, you can use that floor plan to help you determine what to donate or sell.

Scaling back now means you'll have less to move later on. It's also the perfect opportunity to do an updated home inventory [PDF-602.7KB] and share that with your State Farm® agent.

Divide and Conquer

Sometimes half the battle is deciding where to begin—especially when you're working with years of accumulated possessions. To help avoid feeling overwhelmed, work on one room at a time.

Edit Away

As you carefully sort through each room, you can stay organized by creating labeled piles like:
  • Belongings to keep
  • Heirlooms and treasures to give to family
  • Items in good condition to donate
  • Things to trash

Get a Second Opinion

Downsizing can be an emotional experience. Don't be afraid to ask family and friends for help. You may also choose to enlist the help of a professional home stager or organizer. Getting a second opinion can take some of the pressure off.

Once you're ready to move, pack smart with these tips.

Disclosure

Neither State Farm nor its agents provide tax, legal or investment advice. Please consult your own adviser regarding your particular circumstances.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.

When rolling over a 401(k) into an IRA it's important to do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees, and any potential penalties.