As someone that has worked almost all of their life, retirement can seem like a welcome relief from the daily grind of going to the office, dealing with your coworkers, and of course dealing with your boss. However, even if you have a decent amount of retirement savings as well as pension, you may quickly discover that these do not go as far as they used to. Of course, this is doubly true if you haven’t done proper financial planning. In a case like this, you may be thinking about a reverse mortgage. But have you considered if it is actually something that you really want?
While this type of loan may seem like something that you can and should consider, you may want to think twice. For some, the idea of taking on what is essentially another loan, is not something they want to do. Something else to think about is if you really like working and enjoy what you do, even if you’re retired, you may be able to start up a consulting firm and as such continue to do what you love and get paid potentially quite a bit more than you would working for someone else. If this is you, then a reverse mortgage may not be something you want to look into. After all, when your work does not seem like work but seems more like fun, you almost never have a bad day or want for money.
Something else to consider is that there are those that simply do not like to have any debt in any shape or form, even if it means struggling a little bit once they’ve retired. Always remember that a reverse mortgage is another type of loan and although you do not have to pay back for as long as you stay in your own, eventually it will be necessary to pay it back. If this is something that you do not like the sound of, then this option may not be for you.