Kiplinger conducted a survey that found more than 70% of individuals age 50 and older are concerned that inflation will cause serious economic hardship during their retirement.
In a recent article, Kiplinger Senior Editor Sandra Block said one remedy to consider is taking out a reverse mortgage line of credit.
“The line of credit will create a buffer during market downturns, providing a source of funds to pay expenses until your portfolio recovers,” says Wade Pfau, professor of retirement income at the American College of Financial Services. “You won’t have to pay the money back as long as you remain in your home.”
Pfau adds while rates have moved up recently, they’re still historically low. “However, if you’re contemplating a reverse mortgage, you may not want to put it off much longer, because rates are expected to continue to rise as the Federal Reserve moves to squelch inflation. In addition, home prices have been moderating, which means the appraisal you get a few months from now, which will determine the size of your loan, could decline. Taking out the loan now would in effect lock in your current home value, Pfau says. Read the full article.