“Celebrate what you want to see more of.” – Tom Peters
ADDING A REVERSE MORTGAGE TO YOUR NEST EGG STRATEGY
Having a healthy nest egg is one of the keys to financial stability in your golden years but life isn’t always predictable and things could come up that put your savings at risk (illness, job loss, market collapse, etc.).
The cost of living and retirement has also changed and a $1 million nest egg won’t get you as far as let’s say 10 years ago.
Some financial experts recommend seniors pay off their mortgage and rent in retirement as a potential solution.
Yes. Housing can be a big expense in retirement years but it’s not the only one. According to a recent report from the Employee Benefit Research Institute, by the age of 90 “heath care expenses account for more than 20 percent of the households’ entire budget.”
The selling and buying solution also doesn’t take into consideration two things:
- More and more older American prefer to age in place and live out their golden years in the comfort of their own home.
- By selling and renting seniors could be giving up one of their biggest assets, home equity.
BUILDING YOUR NEST EGG
WITH A REVERSE MORTGAGE
A reverse mortgage is often overlooked but can be a strategic addition to a retirement plan to help maintain and ideally grow your nest egg – in particular the Home Equity Conversion Mortgage’s line-of-credit feature.
The line of credit provides senior homeowners with money they can tap into later on in life, and the credit grows at a hate higher than that of a conservative investment portfolio. Another advantage is there are no monthly mortgage payments with an HECM.
All retirement woes and financial challenges will not necessarily be solved with a reverse mortgage but it is a potential solution for long-term savings shortfalls and combined with other methods, can lead to more financial peace of mind in your retirement years.