Ramp Up to Retirement With a Reverse Mortgage
Ramp up to Retirement – Kiplinger.com has published an excellent article, “5 Money Moves in Your 50’s” that helps you ramp up to retirement with smart financial decisions. In addition to making sure you have a plan to pay for long term care and a solid Social Security strategy, it’s imperative that you maximize your contributions to retirement accounts. Another important suggestion they make can be seen below in an excerpt from the article:
“Tap your home’s equity. If you want to cut housing costs in retirement, consider downsizing to lower-cost digs now, says Gary Klaben, president of Coyle Financial Counsel, in Glenview, Ill. “The sooner you do that, the more wealth you can accumulate.” But before you put out the For Sale sign, calculate the costs of selling your place and moving to a new one. Include closing costs on the mortgage, moving expenses, homeowners insurance and property taxes—and, if you buy a condo, homeowners association fees.
You may conclude that staying put is a better idea. In that case, look into a reverse mortgage. These deals, available to homeowners age 62 or older, give you access to home equity. The loan does not have to be repaid until the last surviving borrower dies, sells the house or moves out for at least 12 months.”
Be sure to consider all of your options when preparing for retirement. A reverse mortgage can help you ramp up to retirement; and may allow you more flexibility in your financial planning. Research shows consistently that reverse mortgage borrower’s are more likely to be current on their property taxes and insurance, and they report higher levels of overall well-being, satisfaction and financial security, according to a recent study by Dr. Stephanie Moulton.
When you are ready to learn how a reverse mortgage can work for you, visit our Learning Resources page to see the impact a reverse mortgage can have as you ramp up to retirement!