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#181: Using a reverse mortgage to fund world travel


Because each of you has survived a near-death experience (a bout with cancer in her case, a serious injury in yours), you are determined, within the limits of prudence, to check certain items off your world travel bucket list in the early years of retirement, rather than waiting until later.

Your spouse, retired from her full-time position since last year, does part time consulting work.  With your own official retirement set for the end of this calendar year; you already have a regular customer base for your part time business coaching service. The mortgage on your jointly owned residence has long been fully paid, and the home was remodeled when you married eight years ago.

Each of you has been married before; neither of you has children. While potential future health costs remain a major concern, you will each be covered by Medicare and a supplement. While your long term care policies would be unlikely to cover the total costs of future illness, you feel you’ve done what you can to prepare for the worst. Now you’re determined t make these next years “the best” they can be.

Consider setting up a reverse mortgage on your home as a “brace” against possible health costs in future years. With that “reserve fund” in place, you can use your current sources of income to start checking things off your world travel “bucket list” over the next few years. You’ll continue to own and occupy the home, of course, with no requirement to either borrow against the equity nor to make any payments.

“Repositioning resources” by using your housing wealth to “backload” resources in preparation for the later years of retirement can allow you to “frontload” the funding for your near-term adventuring.


Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).