4 Items Boomers Should Keep in Retirement

Dedicated Insights for Our Audience

At GOBankingRates, our editorial team aims to provide you with honest and accurate evaluations. We rely on data-driven approaches to objectively assess financial products and services, keeping advertiser influence at bay. Discover more about how we maintain editorial integrity and assess products and services.

20 Years
Enhancing Your Financial Experience

Trusted by
Millions Worldwide

If you find yourself between the ages of 57 and 75, you’re probably pondering retirement planning. Selling assets for liquid funds may cross your mind, but think twice. Certain possessions, especially those pivotal for financial security, merit cautious contemplation before any sale. Delve deeper into the key things boomers should refrain from selling.

The Value of Appreciated Stocks

While it might seem appealing to cash in on appreciated stocks, financial planners like Laura Redfern from Shadowridge Asset Management, LLC, strongly advise against this. Think long-term before liquidating stocks that have appreciated significantly.

Redfern emphasizes a strategic approach: “Before any sale, explore other financial resources. Heirs might benefit from a step-up in basis, translating to potential tax-free gains at your passing.” Moreover, charitable contributions become more meaningful with stocks. Scott Sturgeon from Oread Wealth Partners concurs. “Donating stocks to charities, as opposed to selling, bypasses capital gains taxes and ensures impactful charitable contributions.”

Holding Onto Your Life Insurance

Life insurance can be crucial for your beneficiaries. Laura Redfern cautions, “While surrendering your policy for cash might seem viable, remember that the payout will ultimately aid your beneficiaries more.” Selling can disqualify individuals from key aid programs. Many seniors overlook this potential consequence, jeopardizing eligibility for programs like Medicaid.

Consider tapping into alternate benefits of your policy. Directly borrowing from its accumulated cash value or contemplating accelerated benefits might ease financial constraints, advises Redfern. Always consult with insurance advisors to maximize your policy’s features.

The Decision Around Your Home

Home is where the heart—and often, significant value—resides. While selling may promise immediate liquidity, think before leaping. If a reverse mortgage is in play, it becomes a complicated affair with lasting consequences. Costs like taxes and maintenance don’t vanish. Seek guidance from independent advisors for cost-effective alternatives like HELOCs.

For insightful wealth-building strategies, always consider exploring multiple financial avenues.

Preserving Sentimental Items

The last thing boomers should sell includes family heirlooms. While downsizing declutters, monetizing invaluable treasures isn’t worth it. Heirlooms hold emotional narratives, weaving family stories that transcend generations. Instead, gift these precious items, allowing them to become cherished memories shared across family lines.

Gifting treasure-filled heirlooms ensures traditions endure, fostering a sense of connection and continuity among family members.

For more insights tailored to your financial journey, Click Here For More Personal Finance tips and strategies.