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5 unforeseen expenses that ruin retirement

Upgrading your home
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Upgrading your home

Consider how much room you'll need in your retirement budget for home improvements --whether it's renovating your kitchen or bath with universal-design features, putting a master suite on the first floor or replacing an old roof.

Melissa Motz, a Certified Financial Planner in Harleysville, Pa., finds that her clients often underestimate what they will spend on home improvements during retirement. But while they may insist they're done with renovating, their plans often change later on.

"Just because you're retired doesn't mean you're all of a sudden going to stop wanting things," Motz says.

The one thing you shouldn't count on, says Veenker, is taking on a major debt -- like a home equity line of credit or second mortgage -- to finance the upgrade. She says it's better to think ahead about what needs are likely to come up and start saving for them now.

"If you've got a roof that's going to last 25 years, you divide the cost of the roof by 25 and that tells you what amount you have to save per year to be ready for the next roof," Veenker says.


 

 

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