Planning for retirement in a perfect world is a challenge unto itself.
Planning for retirement in our uncertain world is like riding Space Mountain for the first time. You’re glad you get the chance to take the ride, but the unexpected twists and turns will get your heart beating a lot faster than you would like.
What are the leading costs of retirement?
When seniors like you are considering the costs of retirement their mind invariably lands on health care. As it should, but did you know that according to The Bureau of Labor Statistics, health care ranks third at 13.4%? Behind housing and transportation?
Transportation – The Hidden cost of Retirement
“Transportation is one of the greatest under-discussed and under-planned things in retirement I’ve seen almost anywhere,” according to Joseph Conklin of the MIT AgeLab. “We think about health, wealth and housing, but not mobility. Before we do anything, we have to get there first.”
Many transportation costs are fixed, whereas other expenses tend to decline in later life, thereby giving transportation greater scale on the balance sheets of older Americans, Mr. Coughlin said.
Transportation costs could include vehicle purchases, gasoline and motor oil, vehicle finance charges, insurance, maintenance and repairs, public transit, and vehicle rentals and leases. Your retirement is likely to last 20 to 30 years, you’re going to need a new car.
How will a vehicle purchase affect your retirement?
Vehicle purchases are the highest outlay for transportation costs for those of us 65 and over. Looking back over the past 30 years the average price of a new car has risen from $7200 in 1980 to $31,152 today. That’s a 433% increase. I for one am hoping that’s not a trend that will continue.
When it happens to you it’s no longer a “hidden cost of retirement”
If you’re life has been anything like mine, then you’ll likely need that new vehicle when you can least afford it. Seventy-nine percent of seniors over age 65 live in car-dependent suburban and rural communities, according to a report by Transportation for America, an organization that lobbies for investment in local transportation. So this hidden cost of retirement will become all too real for the majority of baby boomers.
The New Reverse Mortgage can help you manage the hidden cost of retirement
The New Reverse Mortgage could be your solution when you reach that “repair or replace” decision with your current vehicle. Our retirements are likely to last 20 to 30 years and repair or replace is a decision we’ll have to make more than once.
The New Reverse Mortgage to the rescue
The Retiree’s Equity Line of Credit (RELOC) works like a traditional line of credit but without the requirement of a monthly payment. The money is there when you are faced with the “repair or replace” decision. It gives you the peace of mind knowing you can make the decision that best fits into your retirement plan. You won’t have to decide out of desperation.
The New Reverse Mortgage isn’t for everyone…but it could be!
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.
Some of this information first appeared at Investmentnews.com