For a variety of reasons, the two of you have made the monumental decision to retire from your careers at the end of the next calendar year. The frustrations and issues have begun to outweigh the motivation to keep working, and, with your home fully paid for and no credit card debt, you believe that you are financially prepared to sever ties with your employer towards the end of 2023.
One big challenge you face is that there will be 3-4 years respectively before you can qualify for health insurance through Medicare. While you will both qualify for COBRA through your employer, that insurance is highly expensive and the coverage will not last until you are Medicare-eligible, you’ve learned. You have begun doing your homework on marketplace plans, which, assuming no surgeries are needed will be the way to go. Unfortunately, you will lose the excellent dental and vision coverage your employer plan provides. The only other significant concern is that, while both your cars are paid for, one will soon need replacing within the next year or so.
Until you become Medicare-eligible, accessing your housing wealth through a reverse mortgage line of credit might ease the wait. In the event that either or both of you need medical or dental treatment with cost that significantly exceeds insurance coverage, you can tap your line of credit. In addition, the equity in your home can be used to replace the car. All along the way, the unused portion of your line of credit will continue to grow, providing a reserve for other needs as you move into your life as retirees.
Between here and Medicare, a reverse mortgage can ease the wait. Then, beyond the magic Medicare qualification age, you’ll have the peace of mind knowing you have a backup resource. .
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894