What to Do with the Profits from Selling Your Florida Home

Why Annuities Might Be a Smart Move for Retirees

Selling a home in Florida, especially in today’s market, can result in a significant profit. But once you’ve got that windfall, what’s the best way to ensure it supports your retirement dreams? For those aged 60 and older, an annuity could be a great solution. Here’s why.

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What is an Annuity?

An annuity is a guaranteed contract between you and an insurance company that provides regular installments for the rest of your life. It’s a secure way to ensure that your money lasts as long as you do, which is particularly appealing if you’re not relying on liquidity. Annuities offer stability, but they’re not a one-size-fits-all solution. That’s why it’s important to understand the pros and cons, and The ProCFO Group is here to help you navigate these options.

The Current Real Estate Market in Naples, Florida

As of June 2024, the real estate market in Naples is still going strong. According to Realtor.com, the median home sold price was $665,000. Other sources have slightly different figures, reflecting the dynamic nature of the market:

Zillow: Reported an average home value of $595,693, a 1.4% increase from the previous year.
ATTOM: Recorded a median home price of $630,000, based on the previous year’s sales.
Movoto: Noted a median list price of $750,000 in July 2024, down from $825,000 in 2023.

No matter which source you look at, it’s clear that selling a home in Naples can result in a substantial profit. But what should you do with those profits?

Maximizing Your Profits While Minimizing Taxes

If you’re looking to use the profits from selling your home to fund your retirement, The ProCFO Group can help you reduce or eliminate capital gains tax. We offer strategies to help you roll profits into a new investment or reduce your tax liability by up to $500,000. If protecting your retirement fund is your priority, let’s explore how annuities might fit into your financial plan.

Four Recommendations for Using the Profits from Your Home Sale

Diversify Your Investment Portfolio: Spread your profits across various investments to minimize risk and maximize potential returns.
Pay Down Debt: Use the funds to pay off any lingering debts, freeing up more of your retirement income for living expenses.
Purchase Another Residence: Consider reinvesting in real estate, potentially avoiding taxes by rolling the profits into another property.
Reduce Tax Liability: The ProCFO Group can help you minimize your tax burden, allowing you to keep more of your hard-earned money.

Why Annuities Might Be Right for You

If you’re over 60 and don’t need immediate access to cash, an annuity might be a good idea. For example, a $500,000 annuity could provide a monthly payout, with the exact amount varying based on several factors, including your age, gender, and the type of annuity:

Age: The older you are when you start receiving payments, the larger those payments will be. For example, a 60-year-old might receive $3,049 per month, while a 70-year-old could receive $3,652 per month.
Gender: Men often receive larger payments than women because women tend to live longer.
Payment Range: A $500,000 annuity with a lifetime income rider might pay between $2,542 and $6,831 per month, depending on when the annuity is purchased and when the funds are accessed.

Consider Life Insurance as a Complement

While annuities are great for ensuring you don’t outlive your money, they work best when you’re alive. To protect your loved ones after you’re gone, consider a life insurance policy. It can pay off debts or provide income to dependents, offering peace of mind that your family’s financial needs will be met.

Ready to Secure Your Retirement?

If you’re thinking about selling your Florida home and want to ensure your retirement is secure, contact The ProCFO Group today. We can help you explore the benefits of annuities and other financial strategies to make the most of your profits. Let’s plan your financial future together.