Retirement Planning Tools

With our current financial crisis, now, more than ever, many of us are looking for ways to downsize. But for many retirees, downsizing isn't merely an option -- it's a necessary survival strategy that could stretch savings and prevent a critical money shortage later on. All it takes is one or two unfortunate life events to throw a persons retirement plans into a tailspin.

Downsizing is not always easy and can have emotional consequences. But there are ways to lessen the load and make educated decisions that can help make your retirement years more enjoyable, less stressful and less financially burdensome.

Consider these tips to trim the fat from your budget and boost your bottom line in your retirement years.

Shrink your self
Less can easily be more when it comes to your home.

"Housing is the largest area to save money The Missouri-based financial planner says downsizing your home also brings the added benefit of reducing maintenance requirements -- especially if you own a lot of property. Plus, you'll save on taxes and insurance. "That can have a big impact on cash flow

James says he recently advised a new client to move from the large house she shared with her husband into a smaller one to lighten the mortgage and tax load. "She'll still have a mortgage, but the monthly payment will be reduced by about 25 percent and the taxes in her new community are significantly less," he says.

Despite the savings that come along with downsizing a home, many people are still reluctant to do it.

"Most retirees have an emotional attachment to their house and may want space for their kids to visit," says James "But if you can downsize and free up capital to reinvest into your retirement portfolio, it can be a very sensible thing to do."