You are searching about How Much Should A 40 Year Old Put In 401K, today we will share with you article about How Much Should A 40 Year Old Put In 401K was compiled and edited by our team from many sources on the internet. Hope this article on the topic How Much Should A 40 Year Old Put In 401K is useful to you.
Will a Reverse Mortgage Work For You?
As a reverse mortgage loan officer, I see many heartbreaking stories every day. The sad truth is that most of us have not properly planned for our retirement, I am 64 years old and fall into this category. Most of my friends are already retired and have fat 401K or Pensions to fall back on. Almost all of them worked for large companies.
I took a different route. I was self employed for most of my life. It gave me a lot of freedom and the ability to control my own destiny. I was somewhat successful, able to support myself in a comfortable lifestyle, buy flashy cars and clothes and take expensive vacations. I have not put money away for my retirement and will have to withdraw on the fixed income that the Social Security Agency provides. If I had paid off my house, I would be in much better shape and could almost get by on the $1850 Social Security would pay me if I retired now. If I wait until I’m 66 years and 6 months that skyrockets up to $2200 and if I continue to work until I’m 70, I’ll get a whopping $2600 per month. The only problem is that I haven’t paid off my house.
At this point, you would be much better off in a reverse mortgage. A reverse mortgage eliminates my house payment for the rest of my life and allows me to stay in the house forever. They can never call the loan due unless I die, move from the house or sell the house.
They are responsible for taxes and insurance which amounts to about $300 per month. I will also have to pay my Home Owners Association dues which are currently about $325 per month. So from my $1850 per month from SSA, I would have to live on $1200 per month. It’s doable, but not very comfortable. This is not what I have worked for 40 years to achieve
A reverse mortgage will also give me a line of credit that I can tap at any time. If I don’t touch it, it will grow at about 3% per month. It doesn’t sound like much, but keep in mind that’s more than the interest I would have in a bank. Once my value is established, they can never cut the amount of my line or credit or call the loan due even if my house is in value.
If you had a HELOC, a home equity line of credit, the amount of the HELOC can and has been cut in the past due to prevailing real estate values. This happened to almost everyone in 2008 when the subprime bubble burst. People found that when they needed more money, it was not available to them. This caused many people to declare bankruptcy because they were no longer able to pay their bills after being laid off from their jobs.
The reverse mortgage prevents this from ever happening. They put an insurance policy on the loan called Mortgage Insurance that protects the bank in case the values go down again. It also protects the borrower from the adverse effects of his bank out of business.
A reverse mortgage was designed for Seniors who were cash poor but had built up a lot of equity in their homes. It is not unusual for me to find Seniors trying to get by on less than $2000 a month, but have several hundred thousand dollars in their homes that are just sitting there.
If you find yourself in this situation, look for a reverse mortgage. It will help you with your finances, provide a little more spendable money each month and give you the security of being able to stay in your home as long as you want.
Video about How Much Should A 40 Year Old Put In 401K
You can see more content about How Much Should A 40 Year Old Put In 401K on our youtube channel: Click Here
Question about How Much Should A 40 Year Old Put In 401K
If you have any questions about How Much Should A 40 Year Old Put In 401K, please let us know, all your questions or suggestions will help us improve in the following articles!
The article How Much Should A 40 Year Old Put In 401K was compiled by me and my team from many sources. If you find the article How Much Should A 40 Year Old Put In 401K helpful to you, please support the team Like or Share!
Rate Articles How Much Should A 40 Year Old Put In 401K
Rate: 4-5 stars
Search keywords How Much Should A 40 Year Old Put In 401K
How Much Should A 40 Year Old Put In 401K
way How Much Should A 40 Year Old Put In 401K
tutorial How Much Should A 40 Year Old Put In 401K
How Much Should A 40 Year Old Put In 401K free
#Reverse #Mortgage #Work