You're Selling Your Home - How Do You Spend The Money?

You have decided to sell your home. How are you going to decide what to do with your money, and/or spend the money? 

I am going to help you decide!

You may have had to consider where to move, what furnishings to keep, what furnishings to sell, placing your kids in new schools, etc.,etc.

These decisions are all important. However, what you are going to do with the money when your sale closes escrow may be the most important you will have to make!

How much money do you expect to net from the sale? Let's say, for example, that you are going to receive $100,000. $100,000 means that you can have potentially 100,000 mini-decisions to make!

You obviously are not going to get that granular. However, you will probably take a look at several areas that you may decide to allocate the funds to.

Let's look at some of these areas and some of the decisions that need to be made in these areas:

  1. Real Estate: Do you buy a home or rent? If you decide to buy, do you pay cash or get a mortgage? If you get a mortgage, what is the appropriate amount to allocate toward a down payment?
  2.  Savings: What is the appropriate amount to set aside in a rainy day fund? What are the appropriate savings vehicles to place these funds in?
  3. Debt: Do you pay off other debt? if so, which debts should be paid off first? How much debt do you pay off? Does it make sense to leave any debt items as is?
  4. College Funding: Do you set aside some of the funds to finance higher education for your children? If so, how much? What portion of higher education do you expect your children to pay? How much will college cost in the future?
  5. Retirement: Do you set aside some of the funds for your retirement? If so, which asset classes do you allocate these funds to?

As you can see, there are a lot of important decisions to make! Each decision in these categories is important by itself. You also need to remember that a decision made in one category will affect resources available for other categories. These decisions are dynamic!

For example, suppose you want to pay cash for the next home you purchase. No mortgage, that's great! However, that means less $$ available for college funding, paying off other debt, and setting aside funds for retirement. 

I am not saying that paying cash for a home is a bad decision - I am saying that this decision needs to be made with clarity and confidence with regards to how it affects your other financial concerns!

We can help sellers gain clarity and confidence regarding these decisions.

We use our proprietary software, Opes Advantage, to help sellers make effective financial decisions. We can model many different "what if?" scenarios in order to give a seller a visual into how their allocation decisions will affect them now and into the future. 

You may be interested in how old you will be when you run out of liquid assets and have to sell your home - we can model that! If you think the age it concludes that you will run out of money is too young (or too old), we can make changes in the model to approach the age you are more comfortable with!

Here is a short two minute video in which our CEO, Susan McHan, describes the benefits of Op Advantage (click the picture to go the website that has the video):

The need to make good financial decisions arises at critical moments throughout your life. Deciding what to do with your sale proceeds is one of these critical moments. This complementary service we offer will help you see and evaluate your options in order to make effective financial decisions for you and your family! 




Do you need help making an effective financial decision? Call or text me at (650) 222-0386, or e-mail me.









 Opes Advisors is licensed by the CA Department of Business Oversight 4150089, CA Bureau of Real Estate 01458652, Oregon ML -4902, Washington CL-1178435 and NMLS 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC). ©2014 Opes Advisors, Inc. All rights reserved.              

Phil Caulfield
411 Borel Avenue #320
San Mateo

(650) 222-0386

View Phil Caulfield's profile on LinkedIn

2 commentsPhil Caulfield • March 19 2015 11:53AM
You're Selling Your Home - How Do You Spend The Money?
You have decided to sell your home. How are you going to decide what to do with your money, and/or spend the money? I am going to help you decide! You may have had to consider where to move, what furnishings to keep, what furnishings to… more
Our Unique Approach To Mortgage Lending
Here at Opes Advisors we have a unique approach to mortgage lending. To learn about our unique approach, click on the picture to watch a short video featuring Susan McHan, our CEO. You are frequently confronted with financial… more
Can You Help Me Figure Out How to Market Our Approach To Lending?
I started with Opes Advisors as a Branch Manager and originator in San Mateo, CA in February of this year. I have been an originator since 1985. I probably would have pursued management earlier, however, my wife and I have seven kids! I had enough… more
4 Ways You Ain't Looking So Pretty As You Might Think For Your Lender
Applying for a mortgage is like going out on a date - you want to look your best! You may think you look your best with the documentation you have provided. The lender, however, may pick up on some "blemishes" that you have that you… more
"You Have Been Countered, And You Have Two Hours To Make A…
"You have been countered, and you have two hours to make a decision" Rich the real estate agent told his clients Fred and Felicia Firsttimers. Fred and Felicia were in the market to buy their first home. They searched the internet,… more
The ABC's of DTI's (Debt-to-Income Ratios)
Gene Mundt does a great job here explaining the mechanics of the debt-to-income (DTI) ratio calculation. This number has become more important than it has been in the past because the lenders are very concerned with your ability to repay. Gone are… more
Your Credit Score and Your Mortgage Application
Connecticut mortgage lender Rick Cignoli has written an excellent article about the credit score. Many consumers are unaware of the factors that affect their FICO score. Rick explains the different factors and approximately how much rach… more
New Housing Proposed For Downtown Burlingame
Today the San Mateo Daily Journal published an article regarding new housing in Downtown Burlingame When I saw the headline, two issues came to mind immediately parking and traffic (if you have spent any time in Burlingame, you know about… more
Do You Ever Wonder… What Can I Really Afford When It Comes To A…
Mark Taylor, a mortgage lender in Scottsdale, Arizona addresses an important topic (maybe this is the most important for a consumer1) - how much can a home buyer or homeowner truly afford? Here at Opes Advisors we have a proprietary… more
A Very Large Percentage Of Veterans Do Not Have A VA Mortgage
George Souto, a Connecticut mortgage lender makes a great point here in the blog post he has written. Why do so few veterans have VA loans? Here in the San Francisco Bay Area, the maximum loan amount in some areas is as high as $1… more