Making the Best Use of Home Equity in Retirement, Part II

You are receiving this email because you signed up to receive Bob Carlson's free e-letter Retirement Watch Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Carlson's Retirement Watch Weekly] [Retirement Reports](www.retirementwatch.com/retirement-resources/) [Retirement Articles](www.retirementwatch.com/retirement-articles/) Brought to you by Eagle Financial Publications Making the Best Use of Home Equity in Retirement, Part II by Bob Carlson Editor, [Retirement Watch]( 01/21/2024 SPONSORED [Your First Dividend Check Could Arrive in 14 Days]( [image]( What if this Monday you received a check for $225.63? What would you do with that money? Groceries maybe. Then, the next day you collect $86.64. Could be a date night out with your spouse? And this goes on and on every single month. You could also do this starting with just $605! There's no trading behind this, no penny stocks or high-risk investments. All you do is buy and hold and you're set. [Click here to learn more.]( [CLICK HERE...]( Fellow Investor, [Bob Carlson]In last week’s edition of Retirement Watch Weekly, I shared some tips on how to put your home to work for you before and during retirement. Today, we’ll complete the list… Another strategy to consider for your retirement plan – and it's one that is often very misunderstood – is a reverse mortgage. Also known as a home equity conversion mortgage (HECM) it's a loan that is backed by the equity in your home. You don’t make loan repayments during your lifetime. The loan is paid from the sale proceeds after the home no longer is your primary residence. If you live a long time and the interest compounds to a large number, you won’t owe more than the equity in your home. The lender or the federal government will take the loss. You can take the HECM / reverse mortgage as a lump sum, line of credit, or an annuity. For example, you can arrange for a monthly annuity that will last as long as you live. You still have to pay taxes and insurance on the home, and you’ll be responsible for maintaining it. But you receive part of your home equity in cash without having to move. The major disadvantage of a reverse mortgage is that it is a relatively expensive way to borrow. Because of the costs, you’ll be able to borrow much less than the full equity of your home. The percentage of the home’s value you can borrow will depend on your age and the level of interest rates when you borrow. Here are the key points when planning how to use these reverse mortgage strategies to benefit from your home equity. Downsizing is best done sooner rather than later.. There are social and emotional aspects to leaving a long-time home, so the longer you wait the more difficult the move and subsequent readjustment will be. Age, of course, makes the physical act of moving more difficult. Physical limitations could make the move more expensive because you have to hire people to do things you would have done a few years earlier. Also, the lifetime benefits of downsizing are greater when you act sooner. The financial goals of downsizing are to increase your nest egg (resulting in higher income) and decrease monthly expenses. The sooner you make the change, the greater the lifetime financial benefits. SPONSORED [Do You or Any of Your Children Need Term Life insurance, but Don’t Want to go Through the Tedious Process of Getting It?]( [image]( Not to worry – we have made the process of getting Term Life insurance as easy as 1, 2, 3. With one click, if you are healthy and under age 65, you can get a Term life insurance policy up to $2 million, potentially without a medical exam. With one click, you can have an agent-free experience, where you can log in to our user-friendly website, quote yourself, apply, and put your policy in force in less than 15 minutes. 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Another option is to create a reverse mortgage line of credit. You can use the line of credit to avoid reducing your nest egg when markets are down or unexpected major expenses arise. Then, pay down the line of credit from future investment returns. The reverse mortgage also can be used before age 70 if you're retired, but want to maximize Social Security benefits. You can supplement nest egg withdrawals and any other income with cash from either a HECM line of credit or monthly payments for a set period of years. If your Social Security benefits begin at 70, you can choose to repay the reverse mortgage over time or wait to have the loan paid from a future sale of the home. I don’t want to downplay the practical and emotional aspects of your home. Too many people, however, overlook the options for managing their home equity. There are ways you can turn your largest expense into a source of extra cash flow. The earlier you incorporate these ideas in your retirement plan and ensure you are in the right home for the long term, the more financially secure you’ll be through retirement. To a better retirement, [Bob Carlson] Bob Carlson Editor, Retirement Watch Weekly Editor’s Note: Deep State bureaucrats are rushing to seize as much as 30% of your retirement savings. Unless you act now, you’re facing the greatest destruction of financial assets in your lifetime. And while this scheme benefits insiders, big banks, and elite special interests… it could quickly bankrupt you. Thankfully, there are three quick and easy steps you can take to protect yourself and your family. [Click here now to get them before it’s too late.]( SPONSORED [Trade Smarter: Discover Hidden Opportunities w/ A.I.]( [image]( The world’s leading artificial intelligence is forecasting trends in the market in our Free Live A.I. Training. [Save your seat to watch live >>]( [CLICK HERE...]( Want More Retirement Advice? Check out my website, [RetirementWatch.com](, where you’ll find hundreds of free articles covering every aspect of retirement planning. Popular Posts: [What Heirs Should Know About IRAs]( [Surprising Tax Havens]( [How to Make Unlimited Tax-Free Gifts]( [How to Avoid Inherited IRA Disasters]( New to the Retirement Watch Community: SeniorResource.com While 77 percent of older adults want to age in place, others seek out the perfect retirement community. After all, this is your retirement! You deserve the best in your golden years. Whether you’re exploring retirement communities for yourself or a loved one, you’re in the right place. [Here are 5 questions to ask when touring retirement communities.]( About Bob Carlson: [Bob Carlson]Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. 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