A growing number of seniors are looking at their retirement savings and wondering if their nest egg will be enough. With everyday costs going up and people living longer, many are facing the looming financial short fall of running out of money. So the question is how do you preserve your retirement savings when you are in or near retirement. One answer is Reverse Mortgage.
I spoke to a client recently to find out what his goals were. He realized his mortgage still had 20+ years to go making a $700 payment every month. The idea of retirement did not include a mortgage payment and he certainly did not want to finally get rid of that monthly obligation 20 years from now. He chose reverse mortgage to solve both of these issues. Since reverse mortgage does not require a monthly mortgage payment, He eliminated his mortgage payment immediately. He began saving the amount he was giving to his mortgage every month and put it toward his retirement nest egg.
So a month later, he has added $700 to his savings as well as eliminated the financial stress. By the end of the year, he will have saved an additional $8,400 by doing nothing different except keeping the money budgeted for his mortgage.