So if you are approaching retirement and still carrying a large mortgage on your home and you have not purchased a Long Term Care insurance policy, how long do you think your investments will last?
Are you concerned (As most people, are), about running out of money? What if you outlive your funds? Will you move in with your adult children, a tent or buy an RV?
Okay, just a little bit of humor, but this is a very serious situation and many seniors are worried about it. A Reverse loan can leverage retirement funds as many Financial Advisers are now suggesting to their clients and it certainly can eliminate an existing mortgage payment.
Here is the next section of a summary of an article that was written about this very topic, in The Dallas Morning New column. The summary is lengthy and too long for here, so the final portion of it will be in my following post.
Reverse Mortgage Line of Credit: A ‘Powerful’ Retirement Tool
Posted ByJason OlivaOn October 26, 2015 @ 5:01 pm In News,Retirement,Reverse Mortgage
“With the help of ESPlanner, a financial planning software for individuals and financial planners, Burns provides several scenarios of fictitious couples and how a reverse mortgage line of credit can bolster their consumption in retirement.
In one scenario, an already retired couple, ages 76 and 77, has a home worth $443,000; savings of $150,000; and $2,000 per month in Social Security benefits. If they decide to “do nothing,” Burns says they will have $30,300 a year in constant purchasing power for the rest of their lives.
“But if they take out a reverse mortgage line of credit, their lifetime consumption will rise to $45,700 a year in constant purchasing power,” Burns writes. “That’s a 50.8 percent increase in the money they can spend on daily living.”’
Look for the final section of this article in my next post.