The Later Years — Money for Fun
I would like your thoughts on whether a man entering his late 60's, with no spouse or offspring, should consider a reverse mortgage, use existing 401k funds or take out a HELOC or 2nd Mort. The reason I am looking for $30 to $40 k is purely for recreation. It is to buy a kit plane to build and fly. Just curious to your insight,
Terry Says
Well, the first think you should do is make sure you have life insurance! (Although with no dependents, you probably don't need it!) Seriously, I never would want to stand in the way of anyone fulfilling a "bucket list." But if you have to borrow to do it, maybe you want to reassess. The odds are you will live well into your late 80s -- unless you really do build this plane and fly it! And you're going to need the money you have saved. A reverse mortgage is costly -- and will eat up your equity if you sell to move elsewhere. You don't want to take on this burden. Similarly, a home equity loan makes you vulnerable to rising interest rates -- just when you can least afford it. Please find some less expensive fun!
