After four decades as a kindergarten teacher, you retired just as the pandemic was getting underway. With your pension, investments, and Social Security allowing you to cover expenses with some luxuries added, you are now considering ways to raise your standard of living without re-entering full time employment. One thing you’ve been considering is the purchase of a franchise in a children’s educational game and toy business, which is an enterprise you can run out of your home.
Other than your home mortgage (now approximately two years from being totally paid off), you have managed to remain debt-free. Coming up with the franchise fee, however, would involve both borrowing on a credit card and cashing in a chunk of your IRA Rollover account (losing a third of the value to tax). At the same time, you realize you’ll need to sacrifice in order to build an income source that can stand you in good stead during your retirement years. There are less expensive franchises, but this one seems right, given your background in the education field.
Don’t forget what might be your biggest asset, which is the equity you’ve built up in your home.A reverse mortgage will allow you to tap that resource without the need to generate new income tax liability. Once your franchise business becomes profitable, you may choose to partially or fully repay the line of credit, but until you leave the home, there will be no obligatory repayment.
Your housing wealth can be the secret to funding your new education-related home business.
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]
2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894