When determining how to best meet the needs of a senior in retirement, a reverse mortgage could be a viable, often-overlooked alternative option especially if a senior is looking at ways to get access to a new source of cash flow. This is according to a column published this week by MoneyTalksNews.
However, a reverse mortgage is not the only “outside-the-box” option a senior may want to consider in terms of making ends meet in retirement, or as a way to enhance the lifestyle that a senior may prefer to maintain.
“Downsizing for retirement is not the only way to save money on housing,” the column reads in part. “Get creative: If you like your current lifestyle, you might want to explore renting out a room in your existing home. Or, is there a way for you to turn a garage or other space into a studio apartment? Renting out your entire home when you travel might be another option. VRBO and Airbnb are really easy ways to turn your home into income.”
However, for those seniors looking for another method to access additional cash, a reverse mortgage may be the right call, the column says.
“Reverse mortgages: If you want to stay in your existing home, but need to improve your finances, a reverse mortgage may be a good option for you,” it reads.
If downsizing the home isn’t necessarily a viable option, other alternatives to be considered can include the “downsizing” of certain possessions. This can be especially tricky particularly if a senior is making a move, and should likely be undertaken well before the actual moving/downsizing process begins in earnest since many seniors tend to underestimate the difficulty of parting with certain things, the column says.
The cost of living in your community should also be a consideration. If a senior is considering downsizing, then something that could convince a person to age in place is if the new home they’re contemplating comes with a higher cost of living in certain key areas. Making a full determination about whether it is better to stay or to go should include a well-researched look at prospective new areas of interest, the article says.
