Home is where the retirement funds are.
As reported on Yahoo, your home might be your best retirement savings plan yet. Let's find out why...
5 ways to use your home to retire easier
Tie all mortgage-related loose ends together. That means paying off your mortgage before retirement so that it’s easier to live on a limited budget.
Trade the upscale for something more modest. Selling your bigger home for a smaller abode can ensure more savings for your golden years.
Move and improve. Proximity to schools, workplaces, doctors, and grocery stores may have kept you in the same old house, on the same old street, in the same old neighborhood. Much as you love it, a transition into retirement may call for some changes. If you live in an expensive neighborhood, city, or region of the country, feel free to relocate. The world is your oyster, little pearl.
Use home equity. Ever heard of a reverse mortgage? It typically allows people ages 62 and older to use their home equity to pay for retirement needs while staying in that home for the remainder of their lives. The loan will need to be repaid if the retiree moves, sells the home, or dies. Talk to a financial advisor about your options, as this is not the right solution for everybody.
- Choose the renting life. Less responsibility, maintenance, and tied-up capital. Retirees-turned-renters can rely on their landlord to handle any housing issues - and have more capital with which to help fund retirement. Know you can always switch out your home-sweet-home for some cash-sweet-cash.