Since You’re Retired and Holed Up at Home Here’s How to Downsize
With the coronavirus pandemic forcing millions of Americans to hole up in their homes, many who are suddenly confronting their own mortality are also confronted with a growing problem: What to do with a lifetime of accumulation.
Downsizing is vexing when there aren't external pressures because many times children don't want the antique furniture, doll collection, or other miscellaneous trinkets that may have only sentimental value. Yet leaving everything behind or throwing everything away is not necessarily the best option as useful items or those that have monetary value might get cast aside.
Short of an all-out purge or doing nothing, here are some tips to help downsize.
Start earlyMany people don't seriously think about downsizing in earnest until their 60s, if not later, but in many cases people would be better served to begin the process decades earlier, experts say.
Retirement coach Sara Zeff Geber recommends people in their 40s start thinking about their buying habits and whether they have accumulated more stuff than is reasonable for their living accommodations. "I think the litmus test is: If you have a garage, can you get your car in it?" she says.
People tend to think about hoarding in the extreme, but many people have tendencies to overaccumulate and not discard unused items. The time to break the cycle, she says, is before you accumulate so much that it becomes a problem for you or your heirs. This is especially important, she says, for people without children or those who are aging alone for other reasons.
Take an inventoryStart by dividing your possessions into buckets—things you really care about (even if they aren't worth money) and those you don't, says Claudia Fine, chief professional advisor at eFamilyCare.com. For the items you deem important, have a conversation with your family explaining why and what you'd like to see happen to them after you die.
A second bucket includes items you don't need, care about or want. From there, you can start to identify whether these items have any value and which places that might be able to use these items. You can do this yourself over the Internet, or you can work with a professional geriatric care manager who, for a fee, can help you put together some resources.
Divide and conquerIn the category of things to give away, there may be some items of value and others that are probably best for donation. It's always a good idea to try to ascertain if something has value before getting rid of it, says Susan MacMichael John, a certified financial planner and managing director of financial planning at F.L. Putnam Investment Management in Wolfeboro, N.H.
For items you intend to sell, there are many resources you can use to get a sense of what something could be worth. Ask lots of questions and check references, John advises, to ensure the person or organization is reputable so you don't get ripped off.
Many auctioneers won't make house calls unless you have items of significant value. If you can't get someone to come to you, try sending photographs of the items to reputable auction houses like Sotheby's, Christie's, and Bonhams to see if there's interest, John says.
If you have a specific collection, Google it and see what comes up, she recommends. For example, there are auction houses that deal specifically with books and manuscripts. You could also host a garage sale or reach out to consignment shops in your area, which tend to offer a good gauge of an item's worth. Or you might try selling some items using online marketplaces.
For donations, there are several national organizations that offer door-to-door pick-up, including Vietnam Veterans of America, Big Brothers Big Sisters of America, and the Salvation Army. Homeless shelters also sometimes take furniture donations. Check with each organization directly to find out what they'll accept and whether they serve your area.
You can also contact various estate sale or personal property specialists who may also be able to assist. Keep in mind, though, there will be some fee involved for these services.
Seek helpWhile downsizing is something you can do on your own, there can also be a physical and emotional toll that not everyone can handle.
"I've seen people do it themselves and they never get rid of anything because of the emotional and psychological baggage that's attached to it," says Forrest Hong, a geriatric care manager and licensed clinical social worker in Los Angeles, who helps connect older people with downsizing resources.
There are professional care managers and downsizing specialists available to help. The costs for these services vary widely, depending on factors such as the size of the residence, how much help is needed to go through things, and what services are needed.
One place to start could be with an aging life care manager, which can sometimes range from around $50 an hour to $250 an hour. Their role is to get an understanding of the pain points and what's needed and what specialists, if any, to turn to; they can even help you minimize costs, if that's an issue, says Liz Barlowe, president of Barlowe & Associates, an aging life care agency in Seminole, Fla., who is also president of the Aging Life Care Association.
To be sure, it's important to determine the credentials and experience of anyone you work with; ask local agencies, friends, elder law attorneys, or financial advisors for recommendations, says W. Mark Clark, CEO of Pima Council on Aging, a nonprofit agency that serves older adults in Pima County, Ariz.
He advises seniors and their families to do their homework: After years of accumulating, he says, "you don't want to just throw your money out the door."
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