One of the financial advantages many people of retirement age in Asheville, NC, have on their side is home ownership. These people may have worked with Matt Dixon, a locally-based Registered Financial Consultant, to pay off their home while working, eliminating this cost during their retirement.
These individuals have developed a specific, personalized retirement plan with Matt Dixon to address their long-term retirement goals. They have built up a retirement fund through investment opportunities and tax advantages to fund their retirement and have emergency money available when unplanned things happen in their life.
Unfortunately, not all people in Asheville, NC, have taken advantage of the retirement planning services offered by Matt Dixon. These individuals are typically relying on their own investments and the equity they have built up in their home to cover the cost of their retirement.
The Danger of a Home Equity Loan
Borrowing against your home during retirement should only be considered if other forms of access to funds are not available. Taking out a home equity loan, particularly if the couple or individual is still making mortgage payments in retirement, creates a risk of overextending your ability to repay the loan and make your mortgage payments.
Even without a mortgage, adding a home equity loan payment is an unplanned expense in your retirement and when you have a fixed income. While it may not cause financial problems for all Asheville, NC, homeowners, it will decrease your retirement fund over time, limiting what you can do and your financial choices in the future.
To discuss your retirement planning objectives and goals, meet with Matt Dixon of TruNorth Advisors. More information on services, retirement planning, and appointments can be found online at website.
