Rushing Into a Reverse Mortgage
You’ve likely been bombarded with commercials promising the sun and moon… all about reverse mortgages! The thing is, salespeople, don’t often disclose the downfalls of reverse mortgages and seniors only find out when it’s too late to back out.
Of course, some seniors might benefit from them, but not all. That’s why it’s important to take your time and research what they can do for you. Remember, they’ll rain your home equity while accruing a debt that charges interest. On top of that, you’ll have to remember complicated rules, keep in mind high fees, and remember that there may be potential threats to government benefits.
The biggest risk of all is losing your home, so make sure you weigh that against the potential good a reverse mortgage might do you!
Failing to Switch to Low-Risk Investments
Nobody can promise you risk-free investments because such things don’t exist- well, maybe only in dreams!
Plenty of seniors forget that as they grow older they need to switch from high-risk but lucrative investments to less volatile ones, like bonds. Why? Because as you grow older you won’t have as much time to wait out market downturns. Younger people do, which is why they’re more comfortable taking risks.
So, don’t allow yourself to be caught in a bind and make the switch before it’s too late!
