4 Things Retirees Should Never Sell To Build Their Retirement Savings

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As you get older and your financial situation changes, you might be tempted to sell off retirement assets for short term gain, especially when things like inflation fear and economic turmoil play with your head. However, just because you’re retired, it doesn’t mean you can be impulsive with your savings.

When people say that building wealth is a long game, they mean forever. Ensuring that you and your loved ones are financially secure takes its own special type of planning to guarantee that you benefit monetarily from your decisions and avoid seller’s remorse.

Here are four things retirees should never sell to build their savings, according to two experts in their fields. But if you’re still looking to build your savings, take a look at the things retirees should sell to build their savings.

Your Home

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A house is often the first thing people think about selling when faced with savings struggles in retirement. Accessing your home’s equity could provide much needed retirement funds, but it can also result in expensive moving costs, concerns about aging in place and getting a fair price amid volatile housing and rental markets.

“While [selling your primary residence] can make sense in some situations, it’s important to weigh the potential downsides,” said Chad Gammon, CFP, owner of Custom Fit Financial. “A retiree who owns their home might underestimate the cost of purchasing a new home or renting. Additionally, the expense of preparing a home for sale can quickly add up without increasing the home’s value.”

Your Life Insurance

If you have debt or are still earning income when you retire, it might be a good idea to hold on to your life insurance policy, which can also help with things such as estate taxes, burial costs, unanticipated expenses and a means of ensuring that your children and grandchildren will be taken care of financially.

“While it can be tempting to surrender these policies for their cash value, it’s essential to understand the broader benefits they provide,” said Chris Heerlein, CEO of REAP Financial, an SEC-registered investment advisory firm specializing in retirement and wealth management. “Beyond the obvious death benefit, permanent policies can offer a tax-advantaged source of liquidity through policy loans or withdrawals, which can be a big help during unexpected expenses.

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“I’ve worked with retirees who faced medical emergencies and were able to use their life insurance policies as a financial safety net,” Heerlein said. “Selling the policy outright would have left them without this crucial backstop, forcing them to dip into retirement savings or take on debt.”

Your Collectibles and Family Heirlooms

Heirlooms hold sentimental value and are part of your legacy. Selling them may strain relationships, so “before selling these items, it’s a good idea to have a conversation with family members, as someone else may value and enjoy them,” said Gammon. “Plus, you may later regret parting with the items.”

The same goes for collectibles. Over time, the value of things like artwork, antiques, vintage cars and memorabilia collections can increase significantly. Impulsively selling valuable items during a time of financial need might cost you and yours a lot of money down the road.

Determine the value of heirlooms and collectibles by having them appraised, and pass them down to family members or set condition for their transfer in your will.

Your Vehicle

There are exceptions, but typically, your car doesn’t add much to your wealth, and chances are, you won’t get much back for it should you decide to sell. Although many Americans remain active as seniors, not having to commute and enjoying a quieter home life is what retirement is all about.

Selling off one of multiple vehicles is a good idea in retirement, but it might be smart to hang on to your lone reliable car and avoid the inconvenience and expense of public transportation and ride-sharing options in your area.