MythBusters: Retirement EditionRetirement is one of those things that to many looks like the light at the end of the tunnel, “I’ve worked hard and now I’ve earned my right to relax,” but lately this light is becoming darker and darker as the current economic state of the United States keeping pulling everyone under, including seniors, who patiently waited and worked in order to reach a peaceful retirement.In an
article published this past May in Yahoo! Finance, Brian O’Connell tackled 5 myths concerning retirement that everyone should be aware of, whether retirement is years away or right around the corner.The first, and personally most surprising, is $1 million guarantees a stable retirement. Retirees aren’t taking into consideration the biggest factor for how much money you will need: inflation. Think about something as simple, yet necessary, as gas. It used to cost pennies on the dollar. I put in gas today and it was at $4.49. The cost of living is rising and what used to seem like a decent and attractive amount a few years ago is not true anymore.
The second is that health care is your biggest expense when, in fact, it is taxes. A
reverse mortgage can be the solution you are looking for in your Golden Years. If you qualify, instead of making monthly mortgage payments plus interest, you receive monthly payments that are repaid when the house is sold including all interest and fees, and the equity or profits go to homeowner(s) or the heirs.Thirdly, downsizing is a good way to save money. While it may be beneficial to move into a smaller, older house in your later years, they may still need the occasional remodeling, especially if they’re older homes. This alone may end up costing more than you can afford. A
reverse mortgage can be used to remodel your existing home without the stress of having to come up with the money on the spot. Or when downsizing, you can get a Reverse Mortgage for Purchase, and keep most of your money from the sale of your larger home.In addition, paying off your mortgage early seems like the best plan of action. In truth, to eliminate an estimated $100,000 in debt, you would have to take out a $160,000 lump sum from your retirement assets or portfolio, based on a 40% tax rate. The sum taken out could mean a big chunk of change that won’t earn interest for the rest of your life. A
reverse mortgage can pay off your existing mortgage, if there is enough equity in your home, offering you the freedom to retire without stress.Lastly, Medicaid will cover all your health care expenses. In reality, Medicaid won’t cover all healthcare expenses but, rather, catastrophic illnesses. Monthly payments from your
reverse mortgage or the line of credit option can cover expected and unexpected health care expenses, giving you the peace of mind to enjoy your retirement.Seek us out at
PS Financial Services, the reverse mortgage specialists.