For the past quarter century seniors have easily managed to retire on three things: company pension plans, social security, and personal savings. But with an always uncertain economy facing us today and in the future, many baby boomers are taking a second look at their retirement portfolios. Previously, tapping into home equity for retirement has been considered a last resort. But should it be?
Both company pensions and social security benefits face much uncertainty down the road, and if you’re lucky enough to have a somewhat stable retirement investments, protecting them will be high priority. When adding home equity into the retirement equation, statistics show most baby boomers 51 and over have enough to retire comfortably. So where does this leave reverse mortgages?
For seniors 62 and over reverse mortgage is a feasible option. Homeowners can access the equity in their home, live mortgage and loan payment free, and no repayment is due until the last borrower passes or permanently leaves the home at which time there are options. For some retirees, it could mean the difference between living and living well.
When looking down the road toward financial planning for retirement, ask yourself a few questions and determine if a reverse mortgage might fit into your Plan A or your Plan B. Discuss it with your spouse and with your financial planner. Learn the facts about reverse mortgage and how it will affect your loved ones after you pass.
Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington. Contact Janis and learn if reverse mortgage is right for you.
Do you remember two and three decades ago? When we worked hard, saved for retirement, invested in our 401k’s, paid down our mortgages…all while dreaming of the years we’d finally be able to retire? It was an optimistic time and so many did everything right. Unfortunately many of those same dedicated individuals faced trouble during the economic downturn less than a decade ago. With lay offs and investments gone sour, soon-to-be retirees had to tap into their 401k’s to stay afloat, potential pensions went stagnant, and they watched their retirement dreams dwindle. Retirement and financial planners have been picking up the pieces ever since, trying to determine how these hard working Americans can still enjoy the golden years they deserve. And what they are discovering is that one of the largest assets of many retirees – their home – has been grossly overlooked as a retirement tool. Reverse mortgages were only considered a last resort and were rarely discussed, let alone considered part of an upfront retirement plan. Well, things have changed – a lot.