Three Ways Your Home Can Help With Retirement
After watching retirement account balances plummet in 2008 and 2009, many retirees are uncertain that gains will ever be enough to get their accounts back to250-722 where they once were. As a result, retirement dreams are looking pretty dim.
However, some retirees do have one potential untapped source - their home. While home values are also down, this asset can still be a valuable part of the retirement plan. Let's explore this further.
Downsizing
When some people buy their home, they imagine living there for the rest of their lives. After building so many memories there with a spouse and children, it is almost unimaginable to ever walk away.
But there are times where the reality we face requires us to think about things a bit differently. For instance, do empty nesters really need a 4-bedroom home? Granted, the grandchildren may spend some time visiting in the summer, and children may bring their families for some holidays. But, on a day-to-day basis, a large home is impractical.
If this couple were to downsize into a smaller home, imagine how much cheaper the utility bills would be. Imagine how much time would no longer be spent cleaning unused rooms. If the couple relocates to a townhouse or condo, time spent on home and yard maintenance is eliminated.
If there is still a mortgage on the large home, downsizing to a smaller home could reduce or eliminate that bill. Property taxes and insurance would likely go down, as well.
Considering a reverse mortgage
If a family needs additional cash in retirement but is not ready to sell their home, a reverse mortgage may be an option. This program makes home equity available to the homeowner without selling or leaving the home.
Unlike a home equity loan, there are no monthly payments. However, upon the homeowner's death, the beneficiaries will be obligated to either pay off the loaned balance or allow the reverse mortgage company to take title of the home to sell it and recoup their250-824 money.
For a couple whose beneficiaries have no intention of keeping the home, this may not be a bad option. However, it is extremely important to fully understand the terms of the loan before entering into an agreement with any reverse mortgage company.
Selling a second home
Some families have vacation homes in other areas. They may spend summers in one home and move away during cold winters to stay in a warmer area. Others may have a home that they use for summers or holidays.
In retirement, the double sets of expenses can become a burden. This can worsen when the maintenance and repair bills get high. These expenses are there whether or not the home is even being used.
It may be more realistic to rent a vacation home for the week or month, or to stay in a hotel. There are no costs to250-222 consider when no one is there. There are no maintenance bills, no utility bills, and no property taxes or insurance.
Retirement should be enjoyed. There may be times where our resistance to change prevents us from enjoying life. While any of these changes may be hard at first, in time, we will realize just how much simpler life has become. Simple can be more enjoyable that one may imagine.
However, some retirees do have one potential untapped source - their home. While home values are also down, this asset can still be a valuable part of the retirement plan. Let's explore this further.
Downsizing
When some people buy their home, they imagine living there for the rest of their lives. After building so many memories there with a spouse and children, it is almost unimaginable to ever walk away.
But there are times where the reality we face requires us to think about things a bit differently. For instance, do empty nesters really need a 4-bedroom home? Granted, the grandchildren may spend some time visiting in the summer, and children may bring their families for some holidays. But, on a day-to-day basis, a large home is impractical.
If this couple were to downsize into a smaller home, imagine how much cheaper the utility bills would be. Imagine how much time would no longer be spent cleaning unused rooms. If the couple relocates to a townhouse or condo, time spent on home and yard maintenance is eliminated.
If there is still a mortgage on the large home, downsizing to a smaller home could reduce or eliminate that bill. Property taxes and insurance would likely go down, as well.
Considering a reverse mortgage
If a family needs additional cash in retirement but is not ready to sell their home, a reverse mortgage may be an option. This program makes home equity available to the homeowner without selling or leaving the home.
Unlike a home equity loan, there are no monthly payments. However, upon the homeowner's death, the beneficiaries will be obligated to either pay off the loaned balance or allow the reverse mortgage company to take title of the home to sell it and recoup their250-824 money.
For a couple whose beneficiaries have no intention of keeping the home, this may not be a bad option. However, it is extremely important to fully understand the terms of the loan before entering into an agreement with any reverse mortgage company.
Selling a second home
Some families have vacation homes in other areas. They may spend summers in one home and move away during cold winters to stay in a warmer area. Others may have a home that they use for summers or holidays.
In retirement, the double sets of expenses can become a burden. This can worsen when the maintenance and repair bills get high. These expenses are there whether or not the home is even being used.
It may be more realistic to rent a vacation home for the week or month, or to stay in a hotel. There are no costs to250-222 consider when no one is there. There are no maintenance bills, no utility bills, and no property taxes or insurance.
Retirement should be enjoyed. There may be times where our resistance to change prevents us from enjoying life. While any of these changes may be hard at first, in time, we will realize just how much simpler life has become. Simple can be more enjoyable that one may imagine.
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