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Wise Reverse Mortgages Can Be a Saving Grace for Retirees

If, after considering other housing options, you have decided to remain in an eligible home or to move into a new home, you may want to consider a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – as a source of retirement income.

Should You Downsize in Retirement?

One method for freeing home equity for other uses is to downsize your home as a part of moving. Downsizing could mean either moving to a smaller home, or moving into a similar-sized home in a less expensive community.

Potential Directions for Social Security

A common argument for claiming Social Security early is that the program is about to be dramatically overhauled, but it seems rather unlikely that any impending reforms would leave near retirees with significant reductions to benefits.

The New Case for Reverse Mortgages

Reverse mortgages provide the ability to borrow a portion of your home equity without being required to repay the loan until the owner has permanently left it.

Tax Considerations When Delaying Social Security

Delaying Social Security can potentially contribute to an overall tax strategy for retirement. Every case is different, but generally speaking, when you add taxes to the mix, the case for delaying Social Security becomes even stronger than usual.

How Time Horizon and Discount Rate Affect Social Security

One way to view the decision to delay Social Security as an “investment” is by using a present value calculation to identify which strategy can provide the most lifetime Social Security benefits and which strategy creates the lowest funding needs for your investment portfolio. This calculation requires deciding on a time horizon and a discount rate.

Social Security as an “Investment”

The alternative to treating Social Security as insurance is to view it as an investment, or as a gamble on how long one lives. This can be problematic.