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 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 boomers have had the ability to hold onto any personal savings during the economic downturn, it likely took a hit as well. But 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, regardless of income or credit. Homeowners can access the equity in their home and no repayment is due until the last borrower passes or permanently leaves the home. For some retirees, it could mean the difference between living and living comfortably.
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.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.