Is a Reverse Mortgage the answer to your retirement planning? Possibly. There are many seniors working in their retirement years as their plans for retirement have not worked out exactly the way they wanted it to. With pension plans starting to go away and social security in a mess, seniors are looking for other options. A reverse mortgage may help with with the financial burden of the ‘Golden Years’, but it is not for everyone.Don’t just shun away from this option because you heard it was a ‘bad investment’. Over 90% of seniors who have taken out a Reverse Mortgage says it has had a positive impact on their lives. If you think about it, you save all of your life for retirement, by socking away money in various investments, such as a 401K or IRA, but typically your single greatest investment is your home. You have worked hard to pay down on your home or possibly even paid it off and now you may be sitting on a lot of equity. What good is that equity just sitting there if it is not working for you in your retirement years. A reverse mortgage is another financial tool to help you fund your retirement years and keep living the comfortable lifestyle you have grown accustom too.
For example, if you are 70 years old and the value of your property is $250,000 with no mortgage on it, you could draw roughly $900 a month for the rest of the time you are in your home and that is tax-free. That is over $10,000 extra a year in income that is not taxed.
Or another example is if in the same scenario except that you still owe roughly $140,000 on your home and are paying $1,000 in monthly mortgage payments, the proceeds of a reverse mortgage would stop those payments, which would automatically increase your monthly cash intake by $1,000, which again is tax-free because you are no longer making monthly mortgage payments.
There are so many different combinations and ways a reverse mortgage can help you reach your financial goals and freedoms that you were expecting when you retired. This reverse mortgage guide from AARP may help you answer some of the questions you may be asking.
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Is a Reverse Mortgage the Answer to Your Retirement Planning
![Is a Reverse Mortgage the Answer to Your Retirement Planning]()
Reviewed by Merlyn Rosell
Published :
Rating : 4.5
Published :
Rating : 4.5