Ask Terry Questions where to withdraw monies — reverse mortgage?

where to withdraw monies — reverse mortgage?

By Terry Savage on February 17, 2015 | Financial Planning / Retirement

Where to withdraw add’l income: reverse mortgage or variable annuity? Our only income is social security and an IRA annuity. We pay no taxes at this time and the annuity is doing nicely. We are 86 and 91 years young.

Terry Says:  Before I can answer that question, you have to tell me how long you really think you can stay in your home, and what you would want to do if one of you passes on.  A reverse mortgage is a good solution — BUT it involves a lot of fees, so it only makes sense if you plan to stay in your home five years or longer.  The real issue you have to face is whether either one of you would want to live there alone, and could live there alone safely.  Or whether you are better off selling now, and moving into a nice senior community — one that could offer assistance if needed.  You would then put the cash in the bank safely, and draw upon it as needed to make the monthly rental payments in the senior community.   Think about it– and then please get back to me.  I will be happy to answer privately, if you prefer, once you respond.

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