Numerous studies indicate that many Americans won’t have enough money saved to sustain them in retirement and that they will need to rely on other sources for cash flow during their non-working years. For retirees looking to boost their retirement funds, a reverse mortgage can be one solution, says a recent article from MainStreet, a publication of TheStreet.
The article highlights several avenues that can retirees can take to bolster their savings with additional cash flow, including tapping into home equity.
“With such low interest rates one can use the equity in your home to get a long term loan to consolidate other expenses—auto, credit cards, student or repairs—into a single, low payment—freeing up substantial cash flow and potentially creating a tax deductible interest,” says Christopher McGill, CEO at Philadelphia-based East River Bank. “Another option is to investigate a reverse mortgage—just make sure it works for you.”
The need to bolster savings with other assets, like home equity for example, is critical for today’s retirees and those heading into their retirement years.
“Living comfortably in retirement isn’t so much about how much money you have, but more importantly what counts is having a solid cash flow plan in place that includes a very clear income and distribution strategy,” said Gary Plessly, a certified financial planner and co-author of The Book on Retirement (Richter Publishing, 2015), in the article.
Read the Main Street article.
Written by Jason Oliva
