“Right-Size” is the New “Downsize”

In the last couple of years, we’ve had clients in their post-retirement stage of life move into a home they plan to spend their remaining years in. Most make the move preemptively—while they’re still healthy—because they don’t want to be forced into hard decisions later. Some are nudged along by their children, who are already navigating these situations with their own in-laws and don’t want to repeat the process twice.

Others make the move because of health issues. Alzheimer’s, ALS, and Parkinson’s in advanced stages are debilitating. Two-story houses, garages below the main level, or even a few entry steps can become daily hurdles. (Let’s be honest, at 49, I don’t want to carry groceries upstairs either!)

So why do we call it “right-sizing” instead of downsizing? Because downsizing implies moving into a smaller, less expensive home, and for most of our clients, that’s simply not the case. They’ve often been in their home for 30+ years. The mortgage is long paid off, but the house may need updating. Finding an updated, one-level home or at least one with a primary suite on the main floor—usually comes with a higher price tag.

We’ve seen clients sell a home for $425,000 only to purchase their new one for $600,000. That means financing the difference or withdrawing retirement savings. Either option has ripple effects—capital gains taxes, changes to cash flow, and long-term portfolio impacts.

Recently, I worked with clients who needed nearly $200,000 to close on their new home. Their savings were in IRAs and taxable accounts, but selling investments would have triggered significant capital gains. Instead, we pieced together funds creatively – using RMD distributions, a matured CD, and money market liquidity. Still short of the $200,000, we looked at Securities Backed Lines of Credit (SBLOCs), which allowed them to use their investment account as collateral without liquidating assets. It’s not for everyone, but it’s another tool in the toolbox.

And then, of course, there’s the other side of rightsizing: the emotional and practical work. Sorting through decades of belongings. Convincing adult children to finally clear out their stuff. Packing, donating, moving, measuring what fits (and what doesn’t). Choosing a home that not only fits your lifestyle today but also supports you tomorrow – things like wide doorways, no-step entries, and walk-in showers can make a world of difference as you age.

It’s a lot. But here’s the thing: not one client has regretted it. The transition is work—sometimes a ton of work—but every single client has said the same thing: “I wish we had done this sooner.”