Who’s Ready to Retire?

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Filed under: Financial Planning

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We all want to retire someday, but who is truly on track to make that happen? One of the most important financial tools for retiring comfortably is having a real estate property that is paid off, thus making your housing expense very low.

Many baby boomers who have already retired had the privilege of working for an employer that offered a pension program. Now that the next generation (Gen-X) is approaching retirement age, we are going to be the first generation that shows up to retirement without a company pension to help cover costs during the golden years. It’s up to us to put the money away and set up the financial details so that we are prepared to actually step away from work and still maintain our desired lifestyle. There is a big concern about who will actually be ready when it is time for retirement.

Why You Need a Mortgage-Free Home

When you reach retirement age, if you have a house that is paid off, then it is going to be an important detail to help you manage expenses. It will give you a big head start. I’ve been talking about this topic a lot lately because I am on a mission to change the way people are viewing real estate. There’s no question that paying off your home is one of the most important things that you can do to prepare for the future.

So, you need to be looking at real estate with a long-term mindset. The real benefits of real estate don’t happen in a few years when you can sell and gain equity from the property. The market changes are purely chance, and there’s no way to bank on the fluctuations. But, you can count on a mortgage-free home if you stay in it for the long-run.

Own the house without worrying about what it is worth. Let the mortgage amortize to zero. Then, you can continue living in the house indefinitely while only paying taxes and insurance. Even if you decide that you don’t want to stay in the house, then you can downsize and use the equity to move to a new place without worrying about mortgage payments again. Pair this paid-off property with other financial preparations, such as 401k and retirement savings; then you will be set.

Are you ready for retirement? Comment, share, and like this information, and let us know your plans for the future. Contact me any time if you have questions or need assistance with your mortgage.

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