The best is yet to come!!
Finding financial freedom when you retire.
You’ve worked hard—now it’s time to begin the next exciting phase of your life. And, you’ll find it’s smoother sailing with the right financial advice.
When you retire, the range of financial options and advice out there targeted at you can be genuinely overwhelming. A quick Google search will yield thousands of websites offering support services to seniors in need of financial advice.
Be careful when researching online, though. You must always seek independent financial advice before making any major decisions about your financial future.
Let’s cut through the jargon and explain your options in plain English:
· Equity release.
Many seniors are asset rich and income poor. For example, you may have accumulated wealth in your home. Or you might not have had access to superannuation during your entire working life. If this is the case for you, equity release can help you access enough cash to fund your retirement.
Your home is the single most significant investment you’re likely to make. Don’t waste it—you can unlock the financial potential in your family home to give you a more comfortable lifestyle in retirement.
· Think ‘Rightsizing’ not ‘Downsizing.’
‘Downsizing’ sounds like you have to downgrade your life as you age. Not so—let’s think of it as ‘rightsizing’ your way to an ideal property that suits your unique needs. Whether that property’s bigger or smaller doesn’t matter—it just needs to fit your new lifestyle.
Your aim is to free up good cashflow to invest or fund how you want to live the rest of your life. However, it’s essential to ‘think before you shrink,’ as there can be positives and negatives to this solution, depending on the housing market, taxes and the logistics of moving to a new home.
Hot tip: Set up a downsizing checklist—it’s a useful tool to help you plan and keep track of all the details as you go.
· Reverse Mortgages.
Very simply, a reverse mortgage is a loan that you can access if you’re a homeowner 62 years of age or over with substantial equity in your home. Essentially, a reverse mortgage lets you borrow against the value of your home and receive funds as a fixed monthly payment, lump sum or line of credit.
Reverse mortgages differ from average (forward) mortgages because you won’t make any loan payments – the bank pays you each month. In the event of a borrower’s death, moving or selling the home means the entire loan balance becomes due and payable.
· Bank loans.
Lower incomes mean getting a loan can be challenging for pensioners. Lenders may want to charge you a higher interest rate to cover the risk you won’t be able to meet your repayments. Many lenders don’t even offer loans to seniors.
However, look closely, and you’ll find specific loan products designed for pensioners. Often these loans use your substantial equity in your home to negate the risk.
· Community Living/ Lifestyle Villages.
Retirement communities like Encore Living Trafalgar offer a unique lifestyle, security and peace of mind. There are housing options to suit everyone and a variety of amenities, services and facilities on-site to help make retirement the best years of your life.
Before deciding on a lifestyle community, make sure you have a complete understanding of the upfront, ongoing and outgoing costs involved.
Your future is waiting.
The Encore Living team can assist you in understanding the legal, financial and service aspects when considering the benefits of a lifestyle change and are happy to answer any queries you may have regarding retirement living.
With sound financial foundations, the next chapter of your life can be fulfilling, exciting and free from financial stress.
Contact Debra on 1800 362 673 for an obligation free chat or complete the form below and we’ll be in touch.