In America there is a sort of turkey timer that seems programmed to pop in our heads (and often bodies) sometime in our 60’s to plan on winding down work and life and prepare for the inevitable fact that none of us get out of here alive. For many, that is thinking about downsizing costs to live on a “fixed” income. How did it come to be this way? Is it because at one time, 65 was the magic age that Social Security kicked in? For many of us that timer is at an age older than that. I hear many refer to the “fixed” income as is they have no further earning ability. Basically, their new lot in life shows up in the mid 60’s and that is it. Is this when ambition is supposed to die, you get on the Pharma conveyor belt, adding new pills every year to more ailments and slowly deteriorate? Are you depressed now? I am!
If you can somehow shove away from the brainwashing of our society for just a minute and think outside the expected narrative there are a lot of things to consider and embrace as you work on that later chapter of life. First of all, many people work long beyond that expected retirement age and in many cultures retirement isn’t really a thing. Just look at the many in government who work long into their 80’s. My 90 year old neighbor still drives himself into his office down the freeway several days a week to his job as an engineer. Work is part of our DNA as humans – to do things is to thrive. Work isn’t always paid though. Ask any parent who has chosen a career of raising children over income production. But this is supposed to be a blog about home financing right?
My point is that whatever your plan – retire, not retire, make your greatest income after your day job is finished or park your carcass on the beach writing your memoirs, you will still need a place to live in the final quarter of your life and it needs to fit the plan you are setting out to achieve. There are no right answers. Yup. That’s my real point. This isn’t a test – the answers are specific to you. Age isn’t always our friend and our bodies may require planning for an easier future without income production. No matter if this is the case or you are just getting started on making your mark on the world, make sure that your housing can handle it and that your budget will work.
Here is a big pitch for having a Financial Advisor that does this type of planning. They can help you make the most of your assets and plan accordingly. My job is to help you find financing that fits your plan and works for you. Now, there are far more options than in the past for loan term, such as the 30 year for the smallest payment or 10 year for the fastest payoff. Additionally, there is no prepayment penalty on most loan programs. This means that you can put extra funds whenever you choose, onto the principle and reduce the life of the loan significantly. Reducing the life of the loan can be as simple as one extra payment a year or taking the amount of a payment and dividing by 12 months and putting that much extra on your loan every month and watch it take 7 years off the life of the loan!
Downsize and payoff, upsize and rent out, sell and purchase multiple properties with equity, or just reduce payment to something really manageable in this super low rate environment are all opportunities if you are a home owner. Or maybe you’ve never been one and it’s time to buy something that will give you a more predictable housing expense. Whatever it is, I’m happy to talk through scenarios with you and/or your Financial Planner/Advisor. Won’t you rest easier by being prepared for the future you have in mind or even the one you don’t?
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
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