A recent poll conducted by Association Press-NORC Center for Public Affairs found that only 21 percent of people think they will have enough of a savings to retire.
This confirms the troubling reality that many adults are facing, even as they near retirement age.
Whether you’re getting close to retirement or still have a couple of decades to go, it’s never too late to start preparing. To assess your readiness, you’ll want to ask yourself a few questions. While some of these questions are difficult to think about, they are important indicators of how prepared you are.
- What age do you plan to retire?
- How many years are you hoping to spend in retirement?
- How much will you need each month to cover your expenses during retirement?
- What will your primary sources of income be?
- Do you plan to travel or make big purchases in addition to your everyday expenses?
- Based on your health and genetics, is your life expectancy long or short?
If you go through these questions and conclude that you’re not in the best shape to retire comfortably, don’t panic. A Home Equity Conversion Mortgage (HECM loan) may be able to provide a cushion. That is because these loans are designed to assist homeowners in trading a piece of their equity for cash.
I’m here to help answer any questions you may have about achieving your financial goals for retirement. If you think a HECM loan may be right for you, don’t hesitate to get in touch!
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.