I have two options: to selI and rent a one-bedroom apartment, probably starting at $2,000 a month, or staying in my home and getting a reverse mortgage. Do you recommend reverse mortgages in spite of high interest? I wouldn’t be eligible for a HELOC as I have no income, other than my pension and what I take out of my RRIF.
Most people recoil at the idea of a reverse mortgage. I have been searching for independent advice on this subject, but most advisers have a vested interest in selling me something, i.e. the bank, mortgage brokers, etc.
Why retirees might consider a reverse mortgage
I’m sorry to hear you are struggling with this decision, Laurie. I can imagine it is stressful. I will try to walk through the considerations of selling versus a reverse mortgage.
As an 82-year-old woman, you have a 50% probability of living another 10 years…
Speaking of Dale, this week he wrote an interesting article for Seeking Alpha, titled “If I could only own 10 stocks.” Six are Canadian, the other four are American. Since he’s in semi-retirement, his picks may appeal to income-seeking retirees, perhaps supplemented by broad-based exchange-traded funds (ETFs) like the ones Dale helps pick for the MoneySense ETF All-stars, of which he is a panellist.
The case for checking your statements seldom or never
Canada’s financial markets are closed July 1 for Canada Day. And U.S. markets will be closed on Monday, July 4 for Independence Day.
Stock markets are clearly still in a nasty bear mode. Unlike the fastest bear market ever back in early 2020 that was caused by the pandemic, I suspect this one will linger…