BOLDLY VENTURING OUT WHILE STAYING SAFELY AT HOME
Overall, looking back over the five years since you retired, the two of you are generally satisfied that your careful planning has “paid off”. You’ve been able to check all the important items “off your list” – the home remodel and system upgrade, the life/long term care insurance policy, the prepaid funeral arrangements, the auto maintenance warranties, plus visits to (and gifts to) kids and grandkids, not to mention updated estate planning documents. Every one of these things, you’re proud to say, was accomplished with zero debt incurred. Life has settled into a very pleasant routine. Active members of your local community center, you’ve enjoyed cultural events and exercise classes there along with a circle of close friends.
Then, after participating in a book club discussion of the Daniel H. Pink book, The Power of Regret: How Looking Backward Moves Us Forward,
you couldn’t help but realize that you really do have regrets. Has being so orderly and well-planned meant there’s never going to be “more” and “bolder”? Once that “seed” was planted in your minds, you agreed to each come up with ideas for – and research – the costs and steps needed to implement a “bold venture” in the form of travel, which you agreed would include as many family members as possible. So far, you’ve both been gravitating towards the concept of a trip to Europe or Africa. However, while you agreed that working on the details feels “freeing”, as lifelong planners and careful money managers, you’re not sure you can muster sufficient financial “boldness” to move ahead.
The path to financing your “more and bolder” venture with the least disruption to your carefully budgeted retirement finances might be through your housing wealth in the form of a reverse mortgage line of credit. Once the details of the trip itself have been agreed upon, you can use tax-free* withdrawals to pay for the expenses. There will be no required monthly or quarterly mortgage payment**, and the “unborrowed” portion of your housing wealth will be guaranteed to grow at the same rate as the interest being charged on borrowed funds.
You’d be boldly venturing out – while staying safely at home – continuing your “very pleasant routine”!
*Please consult a tax advisor.
**Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.
David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
Equal Housing Lender