Friday, June 3, 2022 / by Brittany Aspenson
A few financial and logistical considerations before you retire.
Every day in the U.S., around 10,000 people turn 65. As a result, many people are trying to make the right financial decisions before they retire. For example, should you buy a home before you retire, even if you own your home outright? Today I want to go over a few things you should consider before answering that question.
The first thing you need to consider is your financial situation. Only 23% of retirees have mortgage debt, so they plan on using their equity to downsize. This is a great position to be in, but it can be difficult to get to your equity sometimes.
If your equity is not sufficient to purchase your next home, or you’d rather not pay cash and have a mortgage, waiting until after you retire could prevent you from qualifying for a loan. Because of this, it might make sense to purchase your next property before you retire. The best way to do this is to use a home equity line of credit (HELOC). This way, you can get the equity out of your old home without selling it.
Once you have your financial situation figured out, it’s time to consider logistics. For example, where do you want to live once you retire? Senior rental communities, co-ops, condos, and townhomes are all popular among retirees. I recommend talking to friends and family about which option makes sense for you.
If you are nearing retirement, please call or email me so we can discuss your situation. I look forward to hearing from you!