(NC) The prospect of retirement can be a double-edged sword. On the one hand, it appears to be a future filled with fun and freedom. On the other hand, it may seem like the day of reckoning is here. When you leave the workplace, will you have enough money to see you through the retirement you've always wanted?
Indeed, as many as 50 per cent of all seniors surveyed recently said they believe their retirement savings will be exhausted within 10 years. This means that, for many, finding a creative solution will be critical for maintaining financial independence.
How about this one?
Stay in your home for as long as you like and, based on the real estate value, receive a cash flow to supplement your income. Here's how it could work for you:
• If you have reached age 55, you may be eligible for the CHIP Home Income Plan from HomEquity Bank. It allows you to convert up to 50 per cent of the equity into tax-free cash.
• Unlike other loans on the market, there are no credit or income qualifications and you are not required to service the interest, or repay the principal until you choose to move or sell.
• It is also guaranteed that you will never have to repay more than the fair market value of the house at the time of the sale.
When considering if this solution is right for your financial circumstances, you may be interested to know that a typical CHIP customer has an annual household income under $75,000 and 79 per cent of them had less than $250,000 saved for retirement. If this sounds a little like you, the CHIP reverse mortgages may be a good way to enhance your day-to-day cash flow.
Ask a financial advisor or a mortgage broker for details – and additional information is also available online at www.chip.ca.