Finally a retirement calculator that gives the New Reverse Mortgage some love.
There are countless retirement calculators available that allow users to punch in a few numbers and determine what lifestyle adjustments they will need to make for a secure retirement.
Most retirement calculators however, focus on spending and saving.
Which is a good start but doesn’t really account for your most valuable asset, the equity in your home. One tool, hosted by the Financial Security project at Boston College will give you numbers that show how a reverse mortgage could potentially enhance your cash flow in retirement.
The “Target Your Retirement” tool is more than just a calculator.
It starts with a video introduction explaining the common ways that retirees can solidify their retirements. It includes the usual methods, controlling spending, working longer to delay Social Security benefits for a higher monthly payout and downsizing to a smaller home.
To test drive the “Target Your Retirement” calculator, click here
How to use the Target Your Retirement calculator
After the video you’re now able to enter your personal retirement scenario, based on age, income, home value and pension plan (if any). This will produce a target monthly income and then lets you adjust three primary variables – retirement age, savings and home wealth to see what steps you need to take to reach your target.
To consider your home wealth, you can either select “downsize” or “reverse mortgage”.
It doesn’t however allow you to consider the results if you downsize and use the New Reverse Mortgage to purchase that smaller home. That option would allow you to not only live mortgage payment free but would also add to your retirement savings.
Planning for a 30 year retirement
Because many of us can expect to live a retirement close to 30 years, looking back over the past 30 years might give us some insight on what we can expect. The tool also allows you to throw to very viable monkey wrenches into the calculation by selecting “market tanks” or “spouse dies”. The down market (think 2000 & 2007) can put a serious dent into your retirement savings , while the death of a spouse would result in lower SSI payments.
The New Reverse Mortgage can be an integral part of your retirement plan.
Not only can it provide income, the Retirees Equity Line of Credit (RELOC) can also add to your retirement assets through its guaranteed growth factor (appx. 1.5% over your loan interest rate). This growth factor allows the unused portion of your RELOC to grow and the growth rate guarantee is backed by the full faith and credit of the US government.
To test drive the Target Your Retirement calculator, click here
The New Reverse Mortgage isn’t for everyone…but it could be!
How do I know if the New Reverse Mortgage is right for me?
If you’re still wondering if The New 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 on Reverse Mortgage Daily