One of our employees bought a small condo 5 years ago.  Diane was fortunate to buy in before the upturn in the economy began to level out.  Her $49,000 condo grew in value to $212,000 and she sold it.  Because of the new capital gains treatment on the sale of a personal residence, as a single person, Diane had no income tax to pay on the sale of her home.  Her proceeds were less than $250,000.  With a $150,000 check in her possession, Diane realized that she could relocate herself to a less expensive and warmer climate.  She seized the opportunity to use her home proceeds to start her retirement. 

So Diane gave her notice, and moved to the West coast of Florida where she bought a bungalow for herself and a few pets.  She paid $155,000 all cash.  She was no longer going to have to make a mortgage payment.  This drastically reduced Diane’s monthly expenses.  Diane’s new home was free and clear.  This enabled Diane to live on her social security, retirement savings and her new part time employment.  She was now ‘working just for food’ and entertainment.  Retirement takes planning and knowledge of your needs and potential expenses.  It also requires that you know how well you can live on less income.  If I can help you get a home or sell your home so you can live your retirement dream, give me a call.

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