Reverse Mortgage Loan Blog

A recent Wachovia survey reported that more than half of female respondents feel worried when they think about being prepared for retirement. Here are five things you can do to ensure that your retirement years are the best — and least stressful — they can be:

• Aim to own your home outright. If you pay off your mortgage before retirement, you take a huge financial load off your shoulders. You also become eligible to take out a reverse mortgage once you turn 62. Visit www.ftc.gov to learn more (type “reverse mortgage” into the search field).

• Say yes to your company’s retirement bonuses. If your employer offers a 401(k) or 403(b) with a matching contribution, invest enough to collect the maximum annual match.

• Save on insurance. Increase the deductible on your auto insurance to at least $1,000. That can save you 30% or more on your premium, and using the same insurer for your house and car can take up to 15% off. Once your kids are grown and you know that you’re completely healthy, consider canceling your life insurance policy — if the purpose of your policy was to provide for the kids if something happened to you.

• Retire without credit card debt. The less money you owe, the less income you’ll need.

• Take Social Security. The age at which you’re eligible for full benefits ranges from 65 to 67, depending on the year you were born. But everyone can begin collecting a reduced benefit at age 62. That can help with any cash flow problems early in retirement. Find out more at www.ssa.gov by searching for “age reduction.”

Teach your children

Parents are constantly in spending mode. If you don’t start on the same page about what you can and cannot afford, there will be constant tension in your family.

An effective way to help your children understand the family finances is to have them sit with you as you pay the bills. Make it fun: Allow them to write the checks. By talking to your children and answering their questions, you might see how out of touch they are about money. You will also see that your entire family must approach this subject together.

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