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.