1) Decrease monthly expenses by paying off your forward mortgage.
2) Reduce or eliminate existing credit card debt.
3) Pay routine monthly expenses.
4) Cover unexpected expenses, emergencies, or costs incurred during a life transition without dipping into savings or other assets.
Build Income, Cash and Credit
5) Maintain a line of credit that can be used as needed.
6) Build a cash reserve that will sustain you through investment market fluctuations and give you the flexibility needed to weather market trends.
7) Replace your salary and generate new income by combining life tenure payments with Social Security and income generated by assets.
8) Avoid monthly mortgage payments when you buy a new home by combining the proceeds of a reverse mortgage with the sale of another home. Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.
Medical and Insurance
9) Pay health insurance premiums during early retirement years.
10) Pay for Medicare Part B and Part D upon becoming eligible at age 65.
11) Cover long-term care, short-term in-home care, or physical therapy expenses incurred as the result of an injury or illness.
Taxes, Assets, Property
12) Establish a special account for paying real estate taxes and property insurance.
13) Retain other investments and assets and benefit from their continued growth.
14) Avoid the pitfalls of selling your assets, including capital gains tax and potentially diminished values.
15) Delay collecting Social Security benefit until age 70 when it reaches its maximum value.
16) Cover the costs associated with a retirement plan, estate plan, or will.
17) Supplement your retirement plan in the event of low returns on investments.
18) Remodel or update your home and replace aging appliances or furniture.
19) Install health-related technologies and make home repairs and improvements that will enable you to live at home alone longer.
20) Convert a room in your home to a living space for an aging parent or caregiver.
21) Install solar panels, a tankless water heater, or new windows to make your home more energy-efficient.
22) Repair or replace your vehicle to ensure you have safe and reliable transportation.
23) Pay for alternative transportation options once you are no longer comfortable driving in order to ensure mobility and access to appointments and social engagements.
24) Contribute to education costs for your children or grandchildren.
25) Assist your adult children in family emergencies or other crises.