Your Retirement Home in May Be a Good Nest Egg With Some Strategic PlanningPosted Friday, September 13, 2013
In the recent downturn of the economy, many homes nationwide have taken a dive in value. As a result, they may not be the nest eggs that potential retirees were hoping for. Now, retirees need to know their options and what to do with their homes in.
If you find yourself in this predicament and aren’t sure what to do, speak with your financial expert and review the following options for your financial future so that you can retire on time — and enjoy it!
- Wait it out. Most retirees want to try this tactic and are hoping that the housing market will rebound. However, if your property’s upkeep costs, such as taxes, insurance and utilities, continue to rise, you might need to consider other options.
- Pay down the mortgage. If you have the extra dough, start investing in your property by paying off your mortgage faster. You’ll build more equity and soon see that extra money each month going straight into savings. To come up with some extra money to pay down your mortgage, you could refinance to take advantage of lower interest rates, or cut back on consumer spending. Whatever your plan, just know that most financial experts agree that you should not stop contributing to your retirement fund or take money out of your retirement investment accounts to be mortgage free.
- Sell and downsize. If you’re still living in the home in which you raised your children, chances are it’s probably too large for your retirement life. Consider selling and downsizing, especially if you have a good amount of equity built up in your current property. You could have your newer, smaller and cheaper home paid off quickly, and could start contributing more to your retirement fund.
Whatever your current financial situation as you approach retirement, consider all of the options. Retirement is for relaxation — which is hard to do when you’re stressed about monthly finances.