Should You Pay Cash When You Downsize? Here Are Three Scenarios

The proceeds from selling your current home have made it possible to pay cash for your retirement home, but should you skip the mortgage?

A man holds a stack of cash with a house in the background.
(Image credit: Getty Images)

I was an early COVID mover. I bought a newly renovated, but quite old, home in June 2020. About a month after moving in, we had water in the basement. The thing about water in the basement is that it tends to happen again and again until you fix the problem. After many trials and tribulations, we fixed the problem. In December of 2020, I got home one day to find water coming from the ceiling right inside the front door. I called an emergency plumber. After inspecting all of the plumbing, he told us that we had a cracked pipe … and that we should probably replace the faucets in the kitchen for efficiency purposes. That last piece of advice I could have done without. Just fix the pipe!

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.