5 Reasons You Should Downsize Well Before You Retire

According to Drew Lunt, founder and advisor at Scratch Capital, downsizing your spending before you retire can be one of the best things you do for yourself.

“The ideal time to test it is a few years before retiring — that way you can make sure the lifestyle changes are realistic before turning off your income stream,” he said.

He adds that learning to adjust your expenses during periods of prolonged adversity can help prepare you for long-term financial success. You’ll know how to avoid putting unnecessary stress on your portfolio and allow your investments time to recover.

“There’s also a big peace-of-mind benefit. Clients with lower fixed costs are often far less anxious during downturns,” he said. “They know they can dial back spending quickly if needed — and just as easily turn it back up when times are good.”

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