This is the third installment in a four-part series covering a fictional character, “Mary” and how our services at P&A can provide clarity following the loss of a spouse. The first and second installments are linked here. The fictional variables and information used throughout this series are for educational purposes only.
Four years after losing her husband, Mary was considering making a change. The house she and Joe had purchased as their retirement home was starting to feel too large and lonely. She had been thinking about moving closer to her daughter and their family.
Over the past year, Mary found herself frequently making long drives to visit loved ones. She often stayed in guest bedrooms at friends’ or family members’ homes, rarely spending time in her own. The idea of moving was emotionally and logistically overwhelming. She knew there would be countless items to go through and that downsizing would take time.
During a review meeting at P&A, Mary shared that she was interested in buying a second home but wasn’t sure she was ready to sell her current one immediately. She remembered how she and Joe had taken their time with their last move 15 years earlier, and she hoped for a similar transition now.
Mary had several key questions:
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- Could I sell some of my investments to fund the purchase of a new home, allowing me time to move gradually?
- How would selling those investments impact me financially? She was not in favor of taking on debt or borrowing money to move.
- If it takes a year or more to sell my current home, how would that affect my financial picture?
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At P&A, we often help clients navigate scenarios like this. Our job is to solve the “what ifs” and help clients make confident decisions. The first step is to ask some clarifying questions to help estimate the key financial variables:
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- What’s the estimated cost of a new home in the area she’s considering?
- Would she be hiring movers or professional organizers?
- Are there other transitional expenses to factor in?
- What ongoing costs from her current home (such as property taxes, insurance, utilities, or maintenance) would remain until sold?
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We used Mary’s financial plan as a guide to model a range of possible timing and cost scenarios. With some details still uncertain, like the timing of her home sale and new house expense, we provided her with flexible planning options.
Reviewing the options provided the clarity Mary needed to act with confidence and put in an offer on a new town home and to begin the next chapter, on her terms.
Disclosure: This blog is for informational purposes only and does not constitute individualized financial, tax, or legal advice. The scenarios described are fictional and for illustrative purposes only. Investment decisions should be made based on your unique financial situation, objectives, and needs. Past performance is not indicative of future results. For personalized advice, consult a financial advisor or tax professional.
Stay tuned for part four of this series, where we’ll explore the next steps in Mary’s journey.
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Pittenger & Anderson, Inc. does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Additionally, the information presented here is not intended to be a recommendation to buy or sell any specific security. To learn more about our firm and investment approach, check out our Form ADV.
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