Your parents have spent decades dedicated to working hard for their job, and now it's time for them to relax and enjoy their golden years. Retirement is an exciting stage in life, but it can also be a time of uncertainty and stress if they're not prepared for the transition out of being off from work.
From the team at Hartford Funding LTD, below are a few tips to help your parents get ready for retirement:
What do they want to do during retirement?
This will be the first time in a long while that your parents will have plenty of free time on their hands, so start your discussion by asking them how they plan to occupy their time. Do they want to travel? Are they interested in new hobbies? Would they like to volunteer or work a part-time job still? Are there any goals they wish to accomplish? Getting an idea of how your parents would like to occupy their time will give you a better understanding of what they will need to make it happen and get the discussion about finances rolling.
What is their current financial situation?
Now it's time for the most important part of preparing to retire: a conversion about finances. To help your parents prepare for their retirement the best possible, you'll need to analyze their finances and savings. Specifically, ask them about:
Their income
Their monthly expenses
What they own
How much they owe
How much savings they have in their 401(k) or IRA accounts
Access to this information can give you an accurate idea of what to expect down the road for their retirement and determine if any financial steps need to be taken to better manage this transition and to last them through these great years.
Will they need more income?
Now that you've had time to evaluate your parent's finances, it's time to determine if they have enough money for retirement. If you've learned that there is a need for more income to help your parents comfortably enjoy their retirement, don't wait to have that conversation; the sooner, the better. Discuss supplemental income options such as Social Security distributions, dividend income from stocks, cash from a life insurance policy, or even a part-time job. After all, retirement is supposed to be a time for relaxation and enjoyment, so it's best to set them on that path with the money they need as soon as possible.
Can a reverse mortgage help your parents?
If your parents are homeowners 62 years or older and are looking to increase their income during retirement, a reverse mortgage may be right for them. A reverse mortgage is a loan that allows qualified borrowers to convert part of the equity in their home into spendable cash. A reverse mortgage may be a great choice for senior homeowners who want to remain in their homes but also need to reduce their monthly mortgage payments or need more cash for retirement.
Speak with a mortgage loan officer to help determine if your parents could qualify for a reverse mortgage to help them have more spendable money to pay off other debts, renovate their home, travel, and enjoy their retirement the way they want.
Are you ready to learn more about reverse mortgages? Contact the mortgage loan officers at Hartford Funding LTD to discuss a Zoom Reverse mortgage loan.
If you’re looking to get a reverse mortgage on Long Island, consider turning to Hartford Funding LTD. We patiently work with you to offer all the information needed to determine if a reverse mortgage is right for you and then guide you carefully through every step of the process.
To learn more about our services and schedule an appointment with our mortgage loan officers, call us at (516) 595-7646 or visit our website.