What are 7 alternatives to buying a home in your golden years?

Intro
00:00:00

Here's my question for today. Are you feeling overwhelmed by the thought of maintaining a home during retirement?

Let me just tell you, first of all, you're not alone in this concern. Today we're going to challenge the traditional notion that homeownership is the only path to fulfilling retirement.

I'm going to share some real stories of how three of my clients found peace and financial freedom by choosing a much different alternative for their housing options. Stay tuned to discover how seven practical alternatives that could transform your golden years.

Narrator
00:00:31

Welcome to the Ask Ralph podcast, where listening to an experienced financial professional with over 30 years of experience can help you make sense of confusing questions, current headlines and industry trends about taxes, small business, financial decision making, investment strategies, and even the art of proper budgeting. Ask Ralph makes the complex simple by sharing his real world knowledge from a Christian perspective with all things financial.

Now, here's your Host, Ralph Estep Jr.

Transcript and Outro
00:00:58

Well, let me start by thanking you for joining me today on your journey to master your finances from a Christian perspective. I got to tell you, I truly appreciate your trust and your time.

You're making a wise investment in your future, and I guarantee it's going to pay off in dividends. Well, yesterday we talked about the 529 plans and the two different types, and I broke them all down for you. And this is critical information for all parents and grandparents who may be interested in doing something with the child's education. So if you missed that show, I'm going to encourage you to go back and check it out.

Now today's listener question comes from Martha all the way from Tennessee, and she writes this, "Dear Ralph, I'm approaching retirement and feeling pressured to keep my large family home, even though maintenance is becoming overwhelming. My children are insisting I keep this huge house because of the memories. But I just don't need this much house. But the thought of downsizing makes me feel like I'm failing somehow. What are your options?"

Well Martha, thank you for your question today. And I can feel the emotion and I can sense what you're feeling in this. And I hear you about that pressure you're feeling. I hear that from many clients, and I also understand your fears. The fear of downsizing is a real thing. You've probably been in your home for a long time. And guess what? This is a huge decision. So I'm going to give you some great options today. Now before I get started, I want to remind you every Tuesday night I go live, that's right, live with the Ask Ralph show.

You can get to it by going to askralphpodcast.com/live. And as a great incentive to join us, I just launched this every week. I'm going to be giving away a hundred-dollar Amazon gift card to someone who joins the live. So I'm going to encourage you to join us this Tuesday night. Again, that's at askralphpodcast.com/live, and maybe you'll be the winner of that hundred-dollar Amazon gift card.

Well you know, Martha, I always like to start with the word of God, and I found a great verse today that really matches up with your question. And it comes from Philippians 4:11-12. And this is what it says. It says, "I am not saying this because I am in need, for I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty." And listen Martha, I thought that was right on point because in the end, it's not about our physical dwelling. It's all about our spiritual peace. So Martha, today, my goal is to give you some of that spiritual peace. The key is finding peace of mind.

Well today, I thought I'd share with you three powerful stories to get started. These are from a few clients I've worked with over the past 30 years, I was putting this script together today and I said, wow. It really has been 30 years. So let's start with story number one. And this is John and Mary, and I call this one RV living. Now, John and Mary owned a $450,000 home. Well, that's a great place, but the problem was their mortgage was $2,200 a month. Add in property taxes, insurance, and don't forget all that maintenance, and they were spending nearly $3,500 a month on housing. And he told me, they said, Ralph, this is hanging over our head each and every month. And I thought about Proverbs 21:5, and that says, "The plans of the diligent lead to profit as surely as haste leads to poverty." Well guess what? John and Mary decided that they were going to be diligent, and it led them to purchasing $120,000 luxury RV.

And let me just tell you, he showed me some pictures of this thing, and it was beautiful and here's the best part of it all. They paid for it with just half of their home's equity. When they sold their home, just half of the equity paid for the RV in full. So guess what? Their monthly expenses dropped to just over a thousand dollars. All I could say is wow.

And what that did was it created some real financial breathing room. It even included in that their RV lot rental. Now they moved around some, it included their maintenance, their insurance. And I remember when he told me about their decision. I remember John is, he's a faithful guy. And he said, Ralph, I pondered on Matthew 6:33 and it said this, it says, "But seek first his kingdom and his righteousness, and all these things will be given to you as well." So what did they find?

You might be saying, Ralph, how did that work out for them? Well, here's what they did. They let go of that traditional homeownership and God truly provided a better path. Now that's a play on words. If you think about it's an RV, a better path. But God did and now they travel all over the country.

They volunteer on mission projects and here's the best part. This is what they said to me. They spend extended time with their kids and grandkids. Think about it literally as a housing trade in. Again, another funny play on words, but give me some room to this today. So that's story number one. And that's what I said the RV
story. Let's look at story number two, and this is what I call Sarah's journey. Now Sarah was struggling with a 2200 square foot home. And here's what she said to me. She said, Ralph, I'm spending $15,000 a year on maintenance. Now the unfortunate part, Sarah was a widow. And she shared me. She said, Ralph, I'm drowning in costs and I feel completely alone. She told me once she said, Ralph, I remembered that scripture verse about wise stewardship. So what Sarah decided do, she tried to, she decided to move into a retirement community. Now, in her case, she paid a $250,000 entrance fee.

Now it might sound like a lot of money, but she was able to pay that completely with the money she got from her home. And the best part of what she was looking for continuing care and being able to stay in her home. It's what they call a CCRC. And she said to me, she said, Ralph, I love this community. Now, in addition to that entrance fee, she pays $2,800 a month.

Now you might think Ralph, that's a high number, but think about it for a second. This fee includes her meals. It includes her utilities. It's includes all these activities. And best of all, and this was the most important thing for Sarah. She has guaranteed healthcare for the rest of her life. I heard somebody say it's kind of like a cruise ship on land.

They're all kinds of fun things going on all the time. She's able to be engaged. She told me, she said, Ralph, this aligns perfectly with my values, my biblical principles. And she said, look, I'm planning for the future, but I'm trusting God's provision. She also told me that she said, perhaps she said, this community gives me not just financial peace but also a social connection that I had missed since losing my husband.

She said to me, she said, Ralph, candidly, it's filled that void, and it's removed my isolation. So Sarah, I say great decision. I'm glad that's working out for you. Now let's look at story number three. And this one is a little bit different. I'm going to tell you up front. This is not for everybody, but Tom and Linda's home sharing story. So Tom and Linda picture this. They were paying $4,200 a month for their condo. Now, they went to a very active church.

They met another Christian couple there who is facing similar challenges, I guess maybe they had lunch together and they came up with this idea and they told me both couples said, look, they drew on inspiration from Acts chapter 2:44-45, which speaks about believers sharing everything they had.

Again, like I said, this one is not for everybody. But what they decided to do is they decided to move in together and do what we call home sharing. Now they didn't stay in the home, the condo they were in. What they did was they went and found a larger home. One that had two master bedrooms, and the best part was they split that rent.

So $3,600 a month rent. But each couple paid only 1800. And the other great part of this, they were able to share the utilities, and this saves them at least another $200 a month. And they tell me, they say, Ralph, it's not for everybody. We get it. But this has become a beautiful testament to Christian fellowship.

And at the same time, Ralph we're making wise financial decisions. And like I said, three times now, it's not for everyone, but it's something to consider. And listen, I've had many clients who did something similar. I had two widowed sisters who lived together not far from here, they've been clients for years.

And the best part of it is you're not only sharing these expenses, but you're supporting each other. Now I promise you 7 alternative ideas and here they are. Now, I'm going to break them out for you and then I'm going to dig into some details because I'm going to share with you some realistic cost so you can make an informed decision.

So we already talked about luxury RV living like my client found out. We already talked about continuing care retirement communities or CCRC. Like I said that client found financial peace of mind there and social interaction. We talked about homeowner, excuse me, home sharing that was at Christian fellowship and good stewardship, but I wanted to add a few more and that was rental communities for active adults and then university-based retirement communities.

And I got a client who was a teacher, and she chose this idea. And I'll tell you about that in a second. She just loves it. I'm going to talk about tiny home communities, which I think is a really interesting idea. And then last but not least number seven on my list, I'm going to talk about international living in lower cost countries.

So let's explore these in detail. Let's start with that luxury RV living. Let's be honest. You're going to have an invent, an initial investment of between 120 and $180,000. Now you can spend a lot more than, now my wife and I, about two years ago, went and looking at these RVs and oh, you can spend some money on these things. The only issue I had with him is the one particular and we were looking at had all these bump-outs, you know, where they crank these things out.

But when you're driving down the road, they're all cranked and it's hard to walk from the front to the back. But anyway, that's just Ralph's opinion. So with those, you're going to have that initial investment. I said anywhere between 120,000, 180,000. Like I said, you could spend a lot more than that. But then you're going to have monthly costs.

And I put here between $1,000 - $1,500. That might be for rent, for maintenance and repairs, for insurance. And I'm going to give you a biblical principle for each one of these. So for this one, I found this from 1 Timothy chapter 6:7. "For we brought nothing into the world, and we take nothing out of it."

Now, the cool thing about the luxury RV living, it's financial freedom and adventure at the same time, it's what I call practicality and escapism. It's that freedom to explore and listen, the possibilities are endless. And you can just open up the map and you've got an opening to all kinds of adventures.

And like my client found, they're able to go spend time with their kids, with their grandkids and their RV is right there. Well, let's move on to the second one. That was those continuing care retirement communities or the CCRC. And like I said, my client paid $250,000 at the front end, and those can go anywhere from $250,000 to $500,000.

So they're not cheap. And then you also are going to pay that monthly fee anywhere I put here between $2,800-$4,000. Now the biblical principle here, it's kind of a funny one, but I thought it was apropos. And that's Proverbs 16:31 and it says, "Gray hair is a crown of splendor." And the thing that a lot of people tell me about these, and I've got many clients that have gone into these.

They love the stability, love the support. They told me they're surrounded by friends. There's a professional chef. Medical care is the key with a lot of these. And listen, you got to understand how these work. There's different types of entry fees. Some of those fees are refundable, some of are not. I'm not going to cover the specifics on today's show but I'm going to encourage you
if you're interested in one of these, go take a look at them and talk with a professional that really understands the ins and outs of those, because you really need to know what you're getting into before you get started. So that was those CCRC. Well now let's talk about that unusual one. A lot of people are going, Ralph, you've lost your mind. It's that home sharing. Now this one, to be honest with you, this is a minimal investment, especially if you're renting a place, you're going to have to pay rent.

But the, one of the things I'm going to bring to your attention here is I think it's really important to get with an attorney and you might spend between $2,000 and $3,000 for some legal agreements that really lay out what this is going to look like. And then you've got your monthly costs anywhere between $1,800- $2,500.

But again, think about the big house that you can rent. And you could share that with somebody so your costs are really cut in half. So the biblical principle here is Ecclesiastes chapter 4 verse 9, which says, "Two are better than one because they have a good return for their labor."

Well, that is precisely what you're doing when you're home sharing and listen, it doesn't have to be just for couples. Like I said, I've got some older ladies who are both widows, they're sisters and they did it together. Sometimes it's just a group of friends. I had somebody say to me the other day, it's like Ralph,
it's my intentional chosen family. And that's better than my normal family. I can relate to that sometimes but think about it. It's got built in support. It's great for somebody who might've been living alone before it provides that companionship and think about this. You have those great movie nights and some excellent potluck dinners. Now, this is a great time to say, ask yourself, how do you feel?

What do you think about these? What do you think of these options will work best for you? I'm going to move on in a second, but I just want to take a break and think about all the different scenarios you can work with. And we're only halfway through. Well, let's move one to the next one. And that's what I call rental communities for active adults.

Now these are monthly costs. These are rents anywhere between $2,000-$3,500. The beauty of these is you've got no maintenance responsibilities. The benefits are you've got great social activities. A lot of them are in secure communities with locking gauge, you know, where you've got a guard at the front.

They're very flexible. So the biblical principle here is from Proverbs chapter 14, verse 1. And it says this, "The wise woman builds her house." Now again, that's a little bit of a stretch, but think about it. This is a wise decision. It's a popular choice. I see a lot of these and one of the things I was doing some research for the show and some of the taglines are what's
they call it the playground for grownups. I'm 52. I'm looking for a playground. That will be fun, but it's a way to stay active. It's a way to stay engaged, the way to stay connected and the best part, and I'm not a big fan of yard work, but there's no yard work because somebody's handling that and it's got this vibrant social life with zero maintenance. And the best part of this is with most of these communities, because you're renting, there's no long-term commitment of ownership.

So you decide, you know what, this isn't for us. We tried it out, but it's not just going to work for us. So let's move on to the next one. And this one is what I call university-based retirement communities. And these, again, these are monthly fees. You're going to pay anywhere between $2,500-$4,000. And like I said, I've got a client.

She lived up here in Delaware. She recently relocated to Florida a couple of years ago, she was a teacher her entire life. So she found this opportunity right alongside of a university and she's like, Ralph, I can't wait to move here. And she is just loving it. She likes it because of these lifelong learning opportunities, there's cultural events, there's concerts, there's plays, there's all kinds of things.

And the best part, she has access to some of the state of the art healthcare facilities because it's attached to a major university. So you might be thinking, Ralph, what biblical principle did you find here? I said, this aligns with the stewardship of both our finances and our talent. Think about it.

This particular kinds of talented teacher and she was able to do this. She sold her home, and she made it work. And it's great for those people who always love learning. They're always looking for something new. She tells me all the time, she says, Ralph, I attend lectures. I go to concerts. Some great theater things.

id to me one time, she said, Ralph, it's like going back to college and I was like, that's pretty cool. Cause I think she's in her late seventies now and see, I'm going back to college. I'm going to school. I'm taking classes. I'm doing lectures, you know, it's like I'm back in college again.

And she said, Ralph, I'm making some huge social connections. And like I said, the other part is she really likes about it is that affiliation with the healthcare right there where she's living. So that's another great one. Well now let's move into the next one I have here on my list and that's what I call tiny home communities. Now you may have seen some of these online, you know Amazon or Elon Musk just listed one of these tiny homes, but there are actually community of these growing all over the United States and upfront you're going to pay between 40 and $80,000 because you actually own the unit. Now most of the time you're renting the land.

So I'm going to put on here that there's a monthly cost of between 580 or $500 and $800. And the benefits of these it's a simplified living. It's a minimalist lifestyle. There's not a whole lot of maintenance. And see, let me give you the biblical principle for this one. Now this one I think is right on. It's from Proverbs 16:8.

It says, "Better is a little with righteousness than great revenues without right." And see, this is a trendy new thing. People are living with less. They're simplifying their life. They're embracing that minimalist lifestyle. It gives them some financial freedom and a lot of people say, Hey, it's great for the sustainability of the planet because we're having a smaller footprint.

They're enjoying life without that huge financial burden of that big house and the coolest part, when I did some research on this, they've got some really cool things and common spaces. You know, you can share gardens with people. And again, this is one of those places, do your research and understand what you're getting into, but it's really a kind of cool thing.

And some of these, these little mini homes or tiny homes they call them, they are really cool. It's neat how they can put all these different things into this little space. And it's very functional. I guess for those people living in New York city in some of these efficiency apartment its kind of the same idea.

Well, last on my list today is international living. And again, this one I'm going to say for costs, it's going to be all over the place. Cause it really depends on where you go. For sake of our discussion today, I said between $1,000-$2,500. Now the cool thing about this is you're going to have a huge cultural experience.

You're going to go somewhere where maybe you've never been, or at least you never lived there. You might find a place that has a lower cost of living, but here's some things I want to warn you about. Some things you might not think about at the front end. You really got to understand healthcare access.

If you're somebody that has some chronic illnesses or that's a concern of yours, pay attention to what's around, you know, there are some foreign places, some international places that have great healthcare, but just be cautious about that. The other thing you need to really understand, and I'm not an expert in this is what are the visa requirements, you know, understand how that plays out with you living there. Maybe you're not a citizen of that place.

You've got to understand those visa requirements exactly. And the biblical principle here is this option requires careful stewardship of resources while creating new opportunities. It's the whole point of you're getting to be an adventurer. People have said to me, Ralph, this is the ultimate escape because I'm exploring different cultures. I'm stretching my budget because I have this lower cost of living.

Now I'm going to give you my key takeaways in just a moment, but today I've got a special ask for you. Listen, I'm really trying to grow the show. I'm trying to reach more people with this positive message of hope and growing their finances while building their faith. So I'm going to ask you to do me a huge favor. I would love for you to share the show with others who will benefit from the information I present each day. All you got to do is simply send them an email with a link to askralph.com.

It's all you got to put in there. Say, hey, I watched or listened to the show. Maybe you watched the show. If you're watching on YouTube or Rumble, and I'm really getting a lot. Ralph is really connected with me. And just tell everybody you know, send them an email. So you just go to askralph.com and tell them about how it's impacted your financial and your faith life, because here's the thing. I worked with a lot of consultants.

I work with a lot of people because this is my mission. I want to see people reach with this positive message. And every one of them tells me the same thing. They say Ralph, you can advertise till the cows come home. And I got cows right here on the farm. But they said the key is word of mouth. So please do me a favor, share it with your friends and family, and let's grow the show and reach more people.

And don't forget, while you're doing that, mention that hundred-dollar giveaway every Tuesday night. Maybe they'll come and see our live show and maybe they'll win that a hundred-dollar Amazon gift card. Well now, as I promise, let me share my key takeaways from today's show. As it says in Philippians 4:11-12 it says, contentment isn't about the size or ownership status of our home. Like we talked about in your question today. It's not about the size of your home.

You got to stop worrying about that. Don't worry about this downsizing thing. The key is finding peace in God's provision for our needs, because that's the truth. So my key takeaway today is we can practice good financial stewardship while maintaining our quality of life. We can do it. And each of the alternatives I presented to you is a way to practice good stewardship while maintaining that quality of life. And see, here's the thing. Being a good steward is larger than financial success. It's not measured by what's in your bank account or how much you've got in your retirement account or how big your house is or how nice your cards are. Those things really don't matter in the end. It's about using our resources wisely for a greater purpose and listen. I gave you a ton of different ideas because no one size fits all and it might not fit you for the rest of your life.

You might have a season of let's go try this international living. Oh, Ralph that wasn't for us. Let's try the tiny house. Oh, we're bumping into each other all the time. That's not working for us. Maybe a good at CCRC or pick one of the other ones. There's just no one size fits all and you might have different seasons even in your retirement. I've had many clients that have moved to another state, they're like Ralph, it just wasn't for us. But you've got to find that thing that aligns with your core values and aligns with your financial goals, because here's the thing. We're all called to seek first his kingdom and these alternatives might help you focus on what truly matters and break free of that burden of excessive housing costs.

It was the whole purpose of today's show. So I hope you heard that loud and clear. Now tomorrow, I'm going to tackle an important topic about lesser-known facts about social security that could impact your retirement planning. A lot of people don't know all the nuances of social security. They think they know it, but tomorrow I'm going to share some things that might just surprise you.

So again, tune in tomorrow, share it with your friends. Let everybody know it. Ralph's going to be talking about social security tomorrow. And remember this as I close today. My passion is to help you achieve financial success. That's my goal, my mission field. It's my plan every day. Why turn on this microphone.

I turn on this camera because I want to see you live out your dreams, and I want to see you grow in your faith because I know working together, we can master your finances from that Christian perspective. So as I always say, stay financially savvy out there and may God bless you abundantly.

Outro:

Thank you for joining us on the Ask Ralph podcast. And with a simple click to subscribe, we'll invite you back to our next episode. And remember, financial issues don't have to be complicated, just Ask Ralph.

The information contained in this episode of Ask Ralph is based on data available as of the date of its release.

Saggio Accounting Plus and Ask Ralph Media, Inc. is under no obligation to update this content if changes occur.

Applying this information to your specific situation requires careful consideration of all facts and circumstances, and any information provided is not to be considered as financial, tax, or legal advice. Please consult your tax advisor or attorney before acting on any material cover.