Do you realize you are sitting on a pile of money you could spend after 62 hiding in your home equity — money you wouldn’t pay tax on and for whatever reason you can imagine? (what a relief it can be). So, it sounds too good to be true and you don’t believe it. That’s OK, that’s the way with this kind of deal — it’s hard to believe it — and you’ll be pinching yourself to see if you are awake.
Hmmmmmmmm. The critics will tell you it’s a crock and you shouldn’t do it. Yes, there is critics and they don’t believe it. What about you? Will you let us explain how it works. That will help you get your feet back on the ground?
The total costs of Social Security will exceed total income this year for the first time since 1982, according to the annual Social Security and Medicare trustees report released on Tuesday, as funds for Medicare are expected to run dry earlier than expected.
So, you retired, and a lot of your friends retired. It didn’t take long to see how difficult it is to retire without enough financial resources. No pensions. No large 401k to cash out. What can you do about it? Besides the usual list which may include scaling down your lifestyle, you can take out some of your home equity with the use of a HECM mortgage to provide additional cashflow. Pay off the mortgage and reduce the overhead.
But even with those adjustments, some will consider staying in — or going back into — the workplace. There are challenges initiated by the changing workplace as evolving high tech skill sets overwhelm those not adequately trained.
Americans say this is their biggest financial regret; Is there a fix? (see editor’s note at the end of this story).
Taylor Tepper @TaylorTepper
May 16, 2018 in Savings