Planning your retirement may be the most important series of legal and financial decisions a person has to make. You are wise to seek advice.  As the “Baby Boomer” generation become the “Retiree Boomer” generation, so many are facing this question. Investment goal is always to Buy Low, Sell High- real estate values are definitely high right now. With your home at a record high, and often the primary asset of the retiree, it makes sense to investigate whether now is the time to cash out and ride into the sunset. However, with prices so high-where will you go? Where should you invest your proceeds? Do you have enough income to support retirement?

As a real estate broker, although I’d love to help you sell your home, I want to make sure that you are educated to make the best decision. Each homeowner has unique personal and financial circumstances that factor into these decisions.  Since I have been in the real estate business for my entire career, both as a broker and an attorney, I have been lucky enough to work with some amazing professionals who provide much needed services, including attorneys and real estate agents nationwide, accountants, investment advisors, and lenders.

Here are some suggestions of how to best prepare for these major life and financial decisions:

  1. Talk to an experienced Realtor, and determine a projected sales price for your home. That conversation should include advice on how to prepare your home to maximize your sales price and buyer interest. Obtain information on the cost of replacement housing in your area, as well as in other cities that you may consider retiring too. Within Southern California, many retirees are choosing to move to more affordable counties such as Ventura, San Diego, or Riverside. However, if you are looking for a less expensive cost of living, or even just a different lifestyle, you should look at other cities popular for retirees. Factors determining the best cities for retirement include, cost of living, access to quality medical care, tax rates, weather, and activities. Check out U.S. News and World Report’s annual list of the best places to retire in America- http://www.businessinsider.com/us-news-best-places-retire-america-2017-9 . If you are the more adventurous type, take a look at International Living, a resource dedicated to living or retiring abroad. https://internationalliving.com/the-best-places-to-retire/
  2. Consult with an investment advisor– if you can, meet with more than one. However, there is one key aspect of choosing this advisor- please choose a fee-based advisor who does not get paid based on what investments they put you in, and instead receives compensation by a flat or hourly fee. It is critical to your financial well-being that this person be a fiduciary.  While your Realtor already has a fiduciary duty to you, believe it or not, many investment advisors do not. That means that they are not required to put your best interest first- shocking, right?! It is perfectly legal for them to sell you an inappropriate and/or risky investment, based on themselves earning more money. Registered Financial Advisors are held to a fiduciary standard, meaning that by law they are required to advise you in your best interest as opposed to their own. One good resource for consumers is NAPFA- The National Association of Personal Financial Advisors- go to https://www.napfa.org/financial-planning/how-to-find-an-advisor for some advice on how to find investment advisors you can trust.  These professionals can help ensure you have a balanced portfolio appropriate for retirement, map out your future budget and retirement income, as well as educating you on investment vehicles that provide income.
  3. Speak to your accountant and your attorney. Your accountant will educate you on the potential taxable impact of selling your home or other investments. An estate planning attorney can be a critical aspect of your plan. They may advise you to set up a trust or take other measures that may improve the financial health of yourself and your loved ones. Ask people you trust for referrals. The LA County Bar Association provides referrals for lawyers, and is a great resource. https://www.smartlaw.org
  4. Now go back to your Realtor. Not only should they be able to help you with the preparation, marketing, and sale of your home, many can assist you with buying your new home- whether it’s in the same neighborhood or elsewhere. I make sure to keep a good network of real estate professionals in other areas to work with and assist my clients in obtaining that next home. Ask for referrals to home organizers, estate auctions (if you decide not to take that Ming vase on your world travels), movers, storage options, accountants, or attorneys. The best referrals come from people you trust, with personal experience.

Now, it’s all up to you- the world is your oyster, and with the right team of people working with you, it’s time to relax or to travel or to. Start packing and enjoy the adventure! Disclaimer: This article is intended to be primarily for entertainment purposes, and is not to be considered legal advice.

ABOUT LISA PHILLIPS, ESQ / CA Bureau of Real Estate Lic# 01189413

Lisa Phillips is an active Realtor in the Los Angeles area, with more than twenty years as a practicing real estate broker and attorney. Her unparalleled knowledge of real estate, from local markets and pricing to legal issues and deal-making, has made her a trusted and valuable asset to her clients. In addition to her real estate and business savvy, Lisa is passionate about helping others, and works tirelessly to achieve the best results for her clients. For more information, please visit www.LisaPhillipsRealEstate.com