2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894
May 10th, 2022
There’s never a good time for bad things to happen, and unfortunately, just as the two of you were trying to cope with retirement decisions, one of your children needs your help. Your granddaughter is very ill and your daughter needed to quit her job in order to take her for ongoing treatments in a hospital center in another state. In your late sixties, the plan was for you to both retire at the end of 2023 (at which time your home mortgage would be fully paid). The new plan is for you to request an unpaid leave of absence so as to help supervise the other two grandchildren. In order to make up for the six month income deficit (since you don’t want to start social security benefits before age 70), you will probably need to use up liquid reserves and then begin to tap your retirement savings.
Consider using the “reserves” you’ve been able to build up in your property, by taking out a reverse mortgage loan. The reverse mortgage can help relieve the immediate financial pressure and free up funds to tide you over during the unpaid leave period. The reverse mortgage “line of credit” will also act as a buffer, enabling you to offer help to your daughter while at the same time helping support the two grandchildren who will be under your direct care.
While your daughter is with their sister out of state, those housing wealth reserves will help “buy time” for you and your husband to adjust your retirement plans until the future becomes clearer.
With a reverse mortgage, your home equity can turn into a parental rescue plan.