When planning for retirement, timing is crucial, especially when deciding when to claim your Social Security benefits. Delaying your benefits until you reach Full Retirement Age (FRA) at 67 can significantly increase your monthly payments, ensuring a more comfortable retirement. Here’s how a Reverse Mortgage Line of Credit can help you achieve that goal:
- Increase Your Social Security Benefits: By waiting until your FRA at 67, you can receive up to 30% more monthly benefits than claiming at 62. This increase can provide greater financial stability in your later years.
- Strategic Use of a Reverse Mortgage Line of Credit: A Reverse Mortgage Line of Credit allows you to access a portion of your home equity without monthly mortgage payments. This can serve as a source of income during the interim, allowing you to delay accessing Social Security benefits.
- Tax-Free Income: Funds drawn from a Reverse Mortgage Line of Credit are tax-free, offering you additional liquidity without affecting your taxable income, which is beneficial when managing your overall retirement tax strategy.
- Growth Over Time: The unused portion of your Reverse Mortgage Line of Credit can grow over time, providing more available funds as you defer Social Security benefits.
By leveraging a Reverse Mortgage Line of Credit, you can strategically delay claiming Social Security until your Full Retirement Age, maximizing your benefits and ensuring a more secure financial future.
For further questions, please don’t hesitate to contact Michael Pankow, NMLS 220611, at 916.296.7765.
