Planning Your Golden Years:
A Retirement Guide
Put Those Mortgage Payments Behind You
Planning to pay off your mortgage before you retire can save you many financial headaches down the road. You’ll feel a lot more comfortable without a large mortgage debt looming over your head. Most lenders allow you to prepay your mortgage by sending in extra money with your payment. You don’t have to follow an expensive schedule or pay for a bi-weekly payment plan. Just send in what you can, when you can, and make sure you designate that extra as additional "principal" payment.
If your home is paid off when you retire, you may want to take money out of your home. A reverse mortgage allows you to get money from a lender instead of paying money to one. You can continue to live in your home for as long as your health allows, while receiving a monthly cheque. This can be ideal for retirees who own a home but don’t have a lot of cash to cover expenses. Keep in mind that this option requires that once you pass away, your home is turned over to the bank that holds the reverse mortgage, hence you are limited in what inheritance you may leave to loved ones.
Think Creatively
Your retirement may not be exactly what you have envisioned, but given the number of years you’re likely to spend in retirement, or at least semi-retirement, you should have plenty of opportunity to experiment with different options. You may consider renting out a room in your home to another retiree or a university student, for example. If you’re a nurse or teach in a special area of expertise, you may be able to travel on cruises for free in exchange for your services.
If Debt Is Getting the Best of You - Seek Help
If getting control of your debt before you retire is becoming an overwhelming task, seek the assistance of a financial planner or credit counsellor who can provide FREE advice about your particular situation.
Don’t wait. One of the biggest mistakes consumers make is raiding their retirement funds to pay bills when they would have been better off getting help from a professional credit counsellor who can help them evaluate their options and make smart choices.
You can call Consolidated Credit’s Debt Hotline at 1-800-656-3920 and speak with a credit counsellor to discuss ways to create a manageable plan for reducing debt.
