A person’s primary residence is typically among their most valuable assets, so it often plays a significant role in their future financial plans. As the housing market continues to change, many clients have asked questions about how the property they own will factor into their retirement. With Homeowners’ Day approaching on Dec. 26, we decided to answer some of the most common questions. What should I consider when buying in another state? Many people move or purchase vacation property in another state after retirement. It can be an excellent financial move, but you must consider several questions before taking the plunge. What will the property taxes be compared to your current home? What are the population growth trends and historical real estate appreciation rate? The answers can help determine whether a home purchase will be a boon or a blunder. Should I use cash to purchase? The answer will depend entirely on your unique set of circumstances. Before paying upfront for a house, you should consider the current interest rate environment (which can change rapidly) and how much liquidity you have. For example, when the funds come from tax-deferred retirement accounts, the penalties may be higher than the accumulated interest. It’s crucial to consider the tax structure of your asset base before making this move. Should I pay off my home before retirement? Again, anyone considering this path should take note of their liquidity, and we advise against draining your cash reserves. A person who wants to pay off their home in one lump sum should also take into account the stability of their income streams and the interest rate and how far they are into their mortgage term. All will help determine how the level of risk compares to the potential reward. Finally, we’d like to add a question that people rarely ask but often should: How long have you lived in your home? The answer matters for your capital gains tax. A couple (married filing jointly) can exclude up to $500,000 of capital gains if the house was their primary residence during at least 2 of the past 5 years. Many people don’t know this rule, and it costs them dearly when it’s time to sell. It’s one of many reasons you should consult a financial advisor and tax attorney before making plans to buy or sell real estate. Answering Commonly Asked Questions HOMEOWNERSHIP IN RETIREMENT
TAKE A BREAK Whoville Roast Beast Inspired by TasteMade.com
INGREDIENTS • 1/4 cup brown sugar • 1 tbsp paprika • 2 tsp black pepper • 2 tsp salt • 3 tbsp olive oil • 1 5-lb bone-in rib-eye roast • 3 tbsp butter
• 2 heads of garlic, halved • 2 bay leaves • 4 thyme sprigs • 2 rosemary sprigs • 1/2 cup beef broth • 1 12-oz bottle of stout beer • 1 15-oz can diced tomatoes (with liquid)
DIRECTIONS
1. Preheat oven to 375 F. 2. In a bowl, combine brown sugar, paprika,
5. When butter melts, add broth, beer, and
tomatoes. Bring to a boil.
pepper, salt, and olive oil.
6. Transfer pan to oven. Braise until meat is tender, up to 2 hours. 7. Remove roast from pan and let rest for 15
3. Place roast in a baking pan and coat with spice mixture. Let marinate uncovered in refrigerator for 1 hour. 4. Place pan on stove
minutes. Meanwhile, strain pan juices and put back into pan and boil until reduced by half. When finished, slice roast and serve with pan sauce.
over high heat. Brown the roast on all sides, then add butter, garlic, and herbs.
PATRIOT WEALTH | 919.322.4113 | P3
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