In preparation for writing this I queried friends on who came to mind when I said “old.”
Four of the five answers? “Granny.”
Being, as my husband says, a “pop-culture illiterate,” I had absolutely no idea about anything relating to the topic, so I googled “Granny.” Wanna guess how old Granny was?
60. As in S-I-X-T-Y. And we’re talking a show that first aired in 1962 – not 1862.
New Version of “Old”
Like everyone else, I know 60-year-olds who are running marathons, starting new businesses, attending their daughter’s high school graduation, and looking forward to at least another quarter century of life, a significant portion of which they plan to spend in retirement.
However – however…
This new version of retirement comes with a price – literally. And just what is that price?
According to Ray Ferrara, head of ProVise Management Group in Clearwater, Fla., as quoted in Forbes.com, that price is about $2.69 million (http://alturl.com/ejre6).
Why so much?
In the first decade of retirement, retirees tend to travel more, make more long-anticipated home improvements, entertain more, and dine out more than they did before retirement.
When you add increased medical costs and a life expectancy of 90, the new version of retirement ain’t cheap.
In fact, by some estimates, over the course of the next three decades seniors can reasonably expect their cost of living to triple.
So what to do?
1) Have a plan: work with a qualified financial planner who specializes in retirement planning.
2) Stick to the plan: a plan is only as good as its implementation.
3) Look into ways to reduce unnecessary spending: most of us have expenditures that deliver appallingly little bang for the buck.
4) Consider a reverse mortgage.
Remember, reverse mortgage was never intended to be a replacement for a sound financial retirement plan. However, it can play an important role in augmenting what is already in place, and slow the burn-through rate on other retirement instruments.
If you are, or someone you know is, looking into reverse mortgage, give me a call. I always love hearing from you.
Laurie Denker MacNaughton [NMLS# 506562] · Reverse Mortgage Consultant, President’s Club · Middleburg Mortgage, a Division of Middleburg Bank · 20937 Ashburn Road, Suite 115 ·Ashburn, Virginia 20147 · 703-477-1183 Direct · LMacNaughton@MiddleburgBank.com · www.middleburgmortgage.com/lauriem
Visit my Informational Blog at https://middleburgreverselady.wordpress.com/