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 know there’s and end but because it’s dark you won’t be able to see the twists and turns until you’re right on top of them.
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 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.
Related: Save thousands of dollars with a Reverse Mortgage
Vehicle purchases are the highest outlay for transportation costs for those of us 65 and over.
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.
A Reverse Mortgage could be your solution when you reach that “repair or replace” decision with your current vehicle. Using tax free funds to purchase with no monthly payment might be the right move toward a safe and secure retirement.
Some of this information first appeared at Investmentnews.com
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