Welcome to today's episode, where we discuss the challenging situation faced by homeowners close to retirement who lose their homes to disaster. This is illustrated by the story of Sandra and Tom Johnson, who lost their Altadena home to a wildfire. At 72 and 76, respectively, they realized rebuilding was not an option for them. Sandra expressed, “It’s too hard at this age to wait years and years and years to be back to normal.”

The recent Palisades and Eaton fires in Los Angeles destroyed over 16,000 structures, leaving many to grapple with difficult decisions about rebuilding or selling. Experts stress the importance of taking time to assess your situation. Jen Mulder from Pathway Financial Services said, “It’s a shock and a trauma… take some time to think about it.”

If you decide to sell, keep in mind the costs of replacing your home. “You can’t buy a cheaper house and pocket the difference,” warns Amy Bach of United Policyholders. For those considering rebuilding, be prepared for high costs that can range from $800 to $1,200 per square foot.

As many homeowners in their 50s and 60s weigh their options, the risk of another disaster looms. Wes Patton suggests this could be an opportunity to downsize or re-evaluate living arrangements. Ultimately, whether rebuilding or selling, it's crucial to consider your long-term financial wellness as you navigate this life-changing event.
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