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Evelyn is turning 65 and about to retire — now her kids are talking about something called “Swedish death cleaning.”
While it may sound morbid, Swedish death cleaning is a philosophy rooted in practicality. In Swedish, it’s known as “döstädning.” This is a decluttering exercise to help simplify your life and reduce the burden on loved ones after you pass.
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Margareta Magnusson popularized this philosophy in her 2017 book, The Gentle Art of Swedish Death Cleaning, suggesting that you, “Visit [your] storage areas and start pulling out what’s there.”
“Who do you think will take care of all that when you are no longer here?” Magnusson’s words aren’t meant to be depressing. Rather, she says it can be “a delight to go through things and remember their worth.”
But Swedish death cleaning isn’t just an amped-up version of spring cleaning. It can also be part of your retirement and estate planning.
Swedish death cleaning for your finances
Since Evelyn is about to retire, decluttering could help her decrease her possessions and downsize into a smaller home, potentially reducing her living expenses throughout retirement.
Beyond trimming down possessions, Swedish death cleaning can also entail organizing and tidying up your finances. That might mean closing accounts you no longer use and getting rid of paperwork you don’t need anymore.
It could mean organizing your bills, bank account information, insurance information and other legal documents so your heirs have everything they need at their fingertips to manage your estate. You can store that information in a system of binders, in a safe deposit box at the bank or in a secure online portal (or a combination of all three).
To declutter your finances, you could even focus on paying off any high-interest debts now so you don’t leave them behind for your heirs. If you have substantial equity in your home, you might want to consider how a Home Equity Line of Credit (HELOC) can help.
A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.
Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.
LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates. Instead of going through the hassle of shopping for loans at individual banks or credit unions, LendingTree lets you compare multiple offers in one place. This helps you find the best HELOC for your situation.
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You might also be able to consolidate some of your financial accounts. For example, do you have more than one 401(k) and could you roll those into a single IRA? Now is a good time to speak with a professional financial advisor about the best path forward for your investment accounts.
FinancialAdvisor.net is a free online service that helps you find a financial advisor who can help you create a plan to reach your financial goals. Just answer a few questions and their extensive online database will match you with a few vetted advisors based on your answers.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Clean up your estate too
Applying Swedish death cleaning principles to your estate planning can spare your loved ones from financial stress after you pass.
Ideally, you want to facilitate a smooth transfer of wealth to your heirs. That means considering estate planning and tax implications now to reduce the burden on your heirs later, while preserving your assets and legacy.
It’s important to have a conversation with your loved ones about what they want — and, perhaps more importantly, what they don’t want. Maybe Evelyn’s adult children don’t want her crystal and china, so she could give them away or donate them as part of her decluttering process.
Once she’s made those decisions, it’s important to put them in writing.
With Ethos Wills & Trust, you can create both a will and living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind.
You can also make unlimited updates forever as your life changes, helping you secure your legacy for your loved ones. You can create a will starting at just $149 and a living trust from just $349.
Plus, if you’re not happy with the results, you can get a full refund within 30 days.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.