
Use a Reverse Mortgage strategically for deductions when needed and grow the Line of Credit simultaneously ; Excerpts from “The Street” website (see link below)
Reverse Mortgages (RM) are most often used to eliminate monthly mortgage payments, although borrowers are required to continue to make their home insurance and property tax payments. Occasionally, a retiree may only want to lower their monthly mortgage payment to one that is more comfortable for them and they may…

The Federal Reserve announced significant rate increases and warns of a “housing bubble”
Early on in the pandemic the Federal Reserve (FR) slashed the Federal funds rate (FFR) (the rate it charges to banks for overnight borrowing) to stimulate the economy. This was to combat the 22 million Americans that could not work and were unemployed. This huge drop in FFR has an…

Effectively use home equity in your retirement plan for the bucketing approach
My kids have been putting some money aside in a secret hiding spot so they can buy the newest and greatest video game system. Without knowing it, they have been using a type of bucketing system to accomplish their goals. Investopedia defines bucketing for retirement like this: “Bucketing segments funds…

Downsize to apartment or smaller home in retirement? Look back 15 years to anticipate the future
I recently met with “Helen” as she was in the process of selling her home she had purchased in LA County 30 years ago. Her home value went up a whopping $600,000 of which she will be able to keep about $300,000 after paying off mortgage and realtor fees. Helen…

Journal of Financial Planning: During market drops, using this strategy extends retirement survival by decades
For retirees with substantial investments in the stock market, February was a scary ride. On the 5th investors held their collective breath as the Dow Jones Average free fell almost 1,600 points; marking the biggest single-day point drop in stock market history. For those living on their stock market returns, February…