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!

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