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.
Market gyrations may seem wild, but the general stock market has solid fundamentals. These seven stocks will keep an even keel as the market gyrates.
7 low-volatility stocks
for jittery times
Hover for preview
Instead of slashing holdings, experts advise more surgical moves, including checking P/Es and tilting toward dividends.
Five ways to safeguard a portfolio during a downturn
Hover for preview
The Federal Reserve doesn't need to lower interest rates, but it probably will anyway. Coronavirus has introduced a new risk into a global economy.
A Fed rate cut right now is the wrong medicine
Hover for preview
9 of the best gold ETFs to hedge volatility
The precious metal is attractive when uncertainty abounds in the market.
Read Story
A rally for alternative energy stocks
Alternative-energy stocks skyrocket amid renewed optimism about the industry. Analysts point to backlashes against power outages and climate-change as some of the reasons behind their newfound popularity.
Read Story
16 stocks Warren Buffett is buying and selling
Berkshire Hathaway's latest scorecard is out. Here are all the stakes that Warren Buffett's investment vehicle added to, or trimmed, during the final quarter of 2019.
Read Story
To replace an image, select the png or jpeg on the canvas or in the layers panel and click the "Replace image" button, which is next to the image thumbnail in the design panel. Any applied animation to the original image will carry over to the new one.
Tip: Try to make the new image a similar size and dimension to the image being replaced.
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.
Yield and stability are key for older investors to consider when managing their portfolios.
8 stocks to buy if you're over 50
Read Story
7 dividend stocks for a bear market
One way to deal with stock market uncertainty is to move into safer dividend stocks. Prepare for the next bear market with these super safe dividend stocks.
Read Story
12 stocks for a market
in turmoil
If you're searching for havens when Wall Street tumbles, stronger companies can help you play better defense. These dozen names may be what you're looking for.
Read Story
To replace an image, select the png or jpeg on the canvas or in the layers panel and click the "Replace image" button, which is next to the image thumbnail in the design panel. Any applied animation to the original image will carry over to the new one.
Tip: Try to make the new image a similar size and dimension to the image being replaced.
Hackers are ramping up attacks on retirement accounts
The financial services industry is a top target for scammers. Here's how to keep yourself safe.
Read More
10 best retirement plans
in 2020
Use this interactive guide to help you find the best plan for achieving financial security in your golden years.
Read More
How to decide where
to retire
Consider costs, lifestyle preferences and the quality of life when selecting a place to retire.
Read More
Tip: How to save time when creating a tab module from scratch.
Create one tab that has the images, text format, animations, and interactions you want the other tabs in the module to have. Copy and paste the tab and change the names of the pasted tab folders in the layers panel. You can then change the text and images in each tab. This is more efficient than making each tab from scratch.
Turn flat objects into multidimensional, dynamic content by adding a drop shadow.
To apply a drop shadow, select the shape or image and add a shadow in the design panel. Experiment with the shadow color, blurriness, and position in relation to the asset.
Round the corners on images and rectangles.
To do this, select an image or rectangle and change the value under "Corner Radius" in the Design tab in the Inspector Panel.
To replace an image, select the png or jpeg on the canvas or in the layers panel and click the "Replace image" button, which is next to the image thumbnail in the design panel. Any applied animation to the original image will carry over to the new one.
Tip: Try to make the new image a similar size and dimension to the image being replaced.
Create digestible content and save screen real-estate by condensing lengthy content into categories that can be viewed on separate tabs.
Template - Horizontal Tab Module
1280px x 720px
The co-managers of Tocqueville Asset Management's Enhanced Income Strategy offering count JPMorgan preferred stock among their holdings.
Cautious buying in
today's market
Deep interest rate cuts could help many companies, but some more than others. These seven names could benefit now that the Fed has sent borrowing costs to a low.
Read MORE
10 stocks you may want to hold onto
In a market environment that overwhelmingly encourages constant activity by investors who seemingly want to double their money every week, a discussion of stocks to buy and hold forever seems comically out of place.
Read MORE
7 stocks to get you thinking like Buffett
Warren Buffett's long-term value strategy has gotten him through many a bear market. If you want to invest like him, these seven names may be worth a look.
Read MORE
The current downturn has dividends getting cut, making quality companies more important to investors. These 15 names have raised their payouts for at least 50 years.
15 ‘dividend kings’ for today’s market
Read MORE
Dividend Stocks
Oracle of Omaha
Investing Strategies
Interest Rates
INVESTING IDEAS
Tip: How to save time when creating a tab module from scratch.
Create one tab that has the images, text format, animations, and interactions you want the other tabs in the module to have. Copy and paste the tab and change the names of the pasted tab folders in the layers panel. You can then change the text and images in each tab. This is more efficient than making each tab from scratch.
Turn flat objects into multidimensional, dynamic content by adding a drop shadow.
To apply a drop shadow, select the shape or image and add a shadow in the design panel. Experiment with the shadow color, blurriness, and position in relation to the asset.
Round the corners on images and rectangles.
To do this, select an image or rectangle and change the value under "Corner Radius" in the Design tab in the Inspector Panel.
To replace an image, select the png or jpeg on the canvas or in the layers panel and click the "Replace image" button, which is next to the image thumbnail in the design panel. Any applied animation to the original image will carry over to the new one.
Tip: Try to make the new image a similar size and dimension to the image being replaced.
Create digestible content and save screen real-estate by condensing lengthy content into categories that can be viewed on separate tabs.
Template - Horizontal Tab Module
1280px x 720px
Many 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.
Start 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.
Take an inventory
In 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.
Divide and conquer
While 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.”
Seek help
“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.”
—Forrest Hong, a geriatric care manager
Start early
> Aging Life Care Association: Offers information on how an aging-life professional may be able to help as well as how to locate an aging-care expert.
> Appraisers National Association: Helps consumers find a certified accredited appraiser in their area, and suggests relevant questions to ask when hiring an appraiser.
>American Society of Appraisers: This group’s members include people who perform appraisals for various purposes such as sale, acquisition, taxes, and estate planning. Consumers can search for a personal property appraiser by last name, state, ZIP Code or specialty.
> American Society of Estate Liquidators: Helps users find an estate liquidator within a 60-mile radius of their location, and offers consumer tips and resources.
> The Eldercare Locator: Federal service that helps connects older Americans and their caregivers with local support resources.
> National Association of Senior Move Managers: Helps older adults and their families through the downsizing and relocation process, including a list of trained senior move managers in their state.
> National Estate Sales Association: Offers multiple guides to improve consumers’ awareness around estate sales and selling personal property.
Resource guide