Retired individuals frequently contemplate the amount they can withdraw from their portfolio while avoiding the risk of insufficient funds. In response to this issue, the 4% Rule is widely utilized in retirement planning. It calculates a secure annual withdrawal rate from a retirement portfolio to prevent its rapid depletion.
The purpose of a Thirty-Day Spending Review is not to create a paper chase for expenditures but just to create awareness about spending. We have been spending all our lives and have formed habits that we no longer notice. Not being cognizant about where money goes is a common source of financial stress.
A HELOC is a financial strategy used with caution. Your home is the collateral for the loan and detracts from your personal net worth if not used wisely. A trusted advisor can help you understand the nuances of this commonly used tool to build wealth.
Wealth experts offer various rules of thumb about how much you need to save. Some suggest $1 million, others say 80-90% of your annual pre-retirement income, and others still say 12x your pre-retirement salary. But what is right for you? And how do you know you're on track?
With the housing market up meaningfully since its peak in 2006, we have amazing wealth in equity. However, new homeowners have been required to meet strict guidelines to qualify for a mortgage. Once such qualification is purchasing Private Mortgage Insurance (PMI). Reviewing your situation with a financial advisor can help bring attention to these costs so you can eliminate them.
Reverse mortgages are often marketed to seniors to help fund retirement using the equity in their home. Regrettably, some seniors have been forced to sell their homes to unwind the reverse mortgage. Review your options with a financial advisor to determine if a reverse mortgage is right for your household.
A Cash-Out refinance is a strategy that allows a homeowner to pursue a lower interest rate on their mortgage while also taking out a lump sum of cash against the equity in the home.
Refinancing in the current interest rate environment seems ineffective but in certain circumstances changes to loan terms can have a favorable outcome.
Home mortgage interest that is deductible as an Itemized Deduction is subject to limitations. Consult with a tax preparer to review new limitations before making changes to your current mortgage loan.