NY Times: 5-Yr Retirement Plan Should Consider Reverse Mortgage
A recent New York Times
article offers a concise 5-year countdown-to-retirement plan, with the final
year of the timeline being the time to –cautiously – consider a reverse
Offered as a way to make
ends meet if you’re planning to stay in your current home, reverse mortgages
are a “fourth- or fifth-tier line of defense,” according to financial planner
Jennipher Lommen of Santa Cruz, Calif., who is quoted in the article.
you are concerned about running out of money in retirement, ‘they can be a good
resource,” she says. “But you’ll need to continue to maintain the home and pay
the property tax, and you have to understand what will happen if you leave the
home. The bank may get it, not your heirs,’” states the article written by
article compiles interviews with financial planners, retirees and economists
who agreed that the five-year mark is when many people begin to panic about
their retirement plans. It’s also a crucial window to make sure your post-work
years are sufficiently covered.
five years out, experts recommend seeing where you stand financially and
looking at overall asset allocation. Four years before retirement is the time
to plan where you want to live in the future. A retirement community? Your
current home? If a community with care options for later in life is your
preference, experts recommend speaking with a financial planner before
purchasing any pricey long-term care insurance.
or not you decide you want to stay in your current home, three years before
retirement is the time to make updates to your house, either for yourself or
might also look at refinancing your mortgage or even opening a home equity line
of credit, which will be easier to do while you’re still earning income. Your
goal should ultimately be to reduce debt, not take on more of it, but a line of
credit could come in handy in an emergency,” writes Finch.
Also,during this year is the time to prioritize and reflect on what you want your
day-to-day life in retirement to include.
Two years before you officially retire is the time to plan for “tax-saving
opportunities” available in early retirement, and, along with considering a
reverse mortgage, you should take another look at your investment portfolio the
year before you retire.
Article author : Maggie Callahan
Article source name : https://reversemortgagedaily.com
Source URL : https://reversemortgagedaily.com/2018/07/09/ny-times-five-year-retirement-plan-should-consider-reverse-mortgage/