What if the money you have saved could help you enjoy life today instead of waiting to pass it on?
There is a growing trend called SKI, which stands for “Spending the Kids’ Inheritance.” It has nothing to do with snow or mountains. It is about enjoying the money you have worked hard to earn.
For many Americans, that means traveling more, seeing new places, and making memories with family and friends.
People Are Traveling More and Spending More
According to a recent report from Squaremouth, a travel insurance comparison company, couples over age 65 are spending much more on travel than younger couples.
In fact, the report found that:
- Couples over 65 spend an average of $9,960 per trip, compared with $6,618 for couples under 50.
- Their vacations last an average of 15 days, compared with 11 days for younger couples.
- They plan their trips earlier and are visiting places like Italy, Japan, Greece, and even Antarctica.
- Travel among couples over 65 has increased by 3.8% from the previous year.
These are not just weekend getaways. Many people are taking the trips they have dreamed about for years.
Isn’t That What We Worked For?
For years, we have been told to save, save, save. Build your retirement accounts. Pay off your mortgage. Leave something for the children.
Those are good goals. But somewhere along the way, we may have forgotten something important.
Your money is also there to help you enjoy your life.
I am not suggesting that you spend everything or stop planning for the future. Far from it. Having a sound financial plan is important.
But I do believe there needs to be a balance between saving for tomorrow and enjoying today.
After all, what good is having wealth if you never get to enjoy any of it?
What About the Equity in Your Home?
For many homeowners, their house is one of their largest financial assets. Yet much of that wealth remains locked in the home.
I often meet people who have done everything right. They have worked hard, saved money, and built significant equity in their homes. But they hesitate to spend money on the things they would love to do.
That is where home equity can become part of the conversation.
A Home Equity Conversion Mortgage (HECM) may allow homeowners age 62 and older to access some of that equity without having to sell their home or make required monthly principal and interest payments.* They must still pay property taxes, insurance, and maintain the home.
The funds could be used for travel, family experiences, or simply to provide more financial freedom.
It is not the right solution for everyone. But it is an option worth understanding.
A Different Way to Think About Your Money
I have spent more than 23 years helping people understand how home equity can fit into their financial plans.
One thing I have learned is that financial security is not just about how much money you leave behind. It is also about how you live along the way.
Perhaps the question we should be asking is not simply, “How much can I leave my children?”
Maybe we should also ask, “How can I use what I have built to make the most of the years ahead?”
You worked hard for your home. You built the equity.
Turns out you can spend equity.
And maybe even go SKIing!
Source: Squaremouth, travel insurance sales analysis of travel spending and booking trends among couples over age 65, as reported by Rethinking65.
*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. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Connecticut Mortgage Lender License ML-1025894. Florida Mortgage Lender Servicer License MLD1827. Maine Supervised Lender License 1025894. Massachusetts Mortgage Broker and Lender License MC1025894. Licensed by the New Hampshire Banking Department, Mortgage Banker License 1025894MB. Licensed by the New Jersey Banking and Insurance Department. New Jersey Residential Mortgage Lender License 1025894. Pennsylvania Mortgage Lender License 72932. Rhode Island Lender License 20163229LL. Rhode Island Loan Broker License 20163230LB. Virginia Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org). Subject to credit approval. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to:www.nmlsconsumeraccess.org #4585818628 Equal Housing Lender