Increase Cash Flow and Retire on Time
Alice and John** (66 and 64) wanted to retire as soon as possible. But with a $250,000 mortgage and eight more years of payments, their retirement income was not sufficient to cover their $1,850 a month mortgage payment. Plus, due to her health issues, Alice was concerned she would not be physically able to work for another eight years. They considered taking funds out of their savings to pay their mortgage off. After looking into this traditional strategy, they discovered some definite downsides, such as:
- no more financial return on a significant portion of their net wealth
- no safety net in place for the unexpected
The Solution? A Reverse Mortgage.
Their financial advisor showed Alice and John how, by using their home equity, they’d be able to eliminate their monthly mortgage payment and leave their savings alone. In fact, after paying off their mortgage, there would be additional funds for them to use as they wished. Using this strategy they’d be able to realize their retirement plan without compromising their lifestyle. With a reverse mortgage, Alice can afford to retire now, and John, as soon as he reaches full retirement age.
**Names changed to protect customer confidentiality.