Page 76 - Workbook3E

If your retirement plans include starting your own business, take a moment to write down how you feel about the issues discussed in these sections, and the reasons you think you could be successful. It’s hard enough to have a business fail, but in retirement it can wipe out the savings of a lifetime. Use the Notes section if you need more space.
#9
With enough determination you can truly do anything! Still, it’s healthy to take the time to write things down, make a business plan and be sure you’re fully prepared.
4 Lifestyle and Housing
Think about what’s important to you? Are you a social person? Do you live alone? Do you see yourself having big dinner parties, or Sunday
picnics for the grandkids? What about caring for a big yard, or would you prefer living in a condo? Will your mortgage be paid off, and will you be able to afford the taxes, insurance, and maintenance?
You need to think about where you want to live during retirement, because this will affect your plans. How important will employment, educational, social, medical, and recreational opportunities be to you? For instance, during retirement it may be important to have medical facilities close at hand, as well as public transportation, shopping, and possibly family support nearby. Obviously, there are many things you need to consider when it comes to your housing and retirement.
Your Home is An Asset
If you own your home, you probably have some equity built up in it. Equity is your home’s cash value minus any claims against it. If you choose to access this money, you need to decide on one of several equity conversion options:
• Reverse Mortgage. When your home is completely paid off, or when sufficient equity is present, the equity may be paid back to the owner in monthly payments. This is a loan, and the terms vary depending on interest rates, the amount you’re borrowing against, and length of the loan. There are several ways to repay it, like when you sell it, or with life insurance when the homeowner dies.
72 Workbook 3: Prepare for the Future