Long-term planning is the key to being prepared for retirement, and unfortunately a large percentage of people find this out the hard way. However, even if you do plan ahead intelligently, things can sometimes take place that you could not anticipate.
A good case in point would be the financial meltdown that we experienced in the United States a few years ago. This set back many people who were planning for retirement.
If you were to find yourself short of liquidity late in your life for one reason or another, one option available to you would be to take out a home equity conversion mortgage. These are reverse mortgages that are backed by the federal government, so they are legitimate but there are costs involved.
Under a reverse mortgage, you receive payments from a lender and the lender obtains equity in your home in return. There are no credit or income requirements because no payments are expected of you. You do have to be at least 62 years of age, you are required to keep the home in good repair, and of course you must have significant equity in the home.
The loan becomes due and payable when you die or when you move voluntarily. A lot of people will sell the house to pay off the reverse mortgage, but you don’t have to do this if you have the means to satisfy the lender in some other way.
Planning for retirement and preparing a thorough estate plan are essential. Should you be interested in discussing your estate plan with a professional, take action right now to set up an appointment with a certified and experienced Campbell, California estate planning attorney.