When’s the last time you thought about retirement?
Was it this morning on the way to work?
The last time you received your financial statement?
A recent study by Charles Schwab found that American’s believe they need around $1.7 million to retire.
How does $1.7 million sound to you? Is that enough or just right?
Is Your 401k Enough? Probably Not…
The scary thing is that while American’s believe they need almost $2 million to retire, we’re not saving that much (on average).
The ACTUAL statistics for 401k plan savings will probably surprise you:
When you dig deeper, you’ll find that about half of people are contributing less than 10% to their retirement accounts nation-wide. Yikes!
So if we’re not saving enough in 401ks, where are your retirement funds going to come from?
The Important Role of Your Home
When you drive around your neighborhood and see a “for sale” sign, does that prompt you to think about retirement?
Buying a home is the single largest investment most people ever make. That’s why financial decisions regarding your home are critically important in your retirement strategy.
Here are 4 tips we can share with you:
#1 – Make sure your interest rate and repayment plan fit in with your retirement goals. For instance, if you’re in your 40s or 50s, a 15 year term may put you in a better position entering your retirement years.
#2 – Get well versed on the different types of mortgages – including reverse mortgages which are playing an ever-increased role as more of America hits retirement age.
#3 – Evaluate the pros and cons of using your home’s equity to fund things like debt consolidation, college expenses, etc.
#4 – Keep careful watch of your insurance coverage & deductibles so unexpected events (and hurricanes) don’t set you back years in retirement planning.
There are no “rules” that apply to everyone when it comes to maximizing the equity in your home and leveraging the appreciation of real estate. That’s where a trusted mortgage advisor comes in…
If you’d like to discuss how your home fits into your retirement plans, please get in touch and let’s have that conversation now so you’ve got plenty of time to plan & enjoy your retirement!