If you still have control over your body, you’re never too old to travel, and retirement provides the perfect opportunity to explore when work commitments no longer steal your time. Some people work all their lives dreaming of taking a tour around the world when they retire only to find they don’t have the finances to cover the cost of the trip when the time comes. Fortunately, there are ways you can obtain the cash you need if your pension doesn’t stretch far enough.
Retirement often comes as a shock to people who’ve been used to living on their monthly salary for years, because a pension is usually much less valuable. You can’t simply sell everything you own to pay for flights, accommodation and living costs while abroad, and you need a property to return to when your trip comes to an end. Keep reading below to learn about some of the most popular ways to get cash when you retire.
Get the Money You Need to Make Your Retirement Dreams a Reality
If you think there’s no way you can fund a tour around the world, you probably don’t know about loan options such as reverse mortgages and refinancing. From downsizing to a smaller property to obtaining a personal loan, here are some popular ways to get extra cash when you retire.
– Personal Loans
If you need money quickly, for example, if you’ve found a once in a lifetime flight and hotel package, you might consider applying for a personal loan. Most banks and lenders can usually put the cash in your bank within a couple of days, and you can borrow as little as a few hundred dollars or as much as several thousand. The two most popular types of personal loan are secured and unsecured, the former of which means putting your assets on the line in case you can’t pay it back, and the latter being the opposite. However, secured loans aren’t available to everybody, but you might be eligible if you’re considered low risk. Of course, you need to keep in mind that you’ll need to pay the loan back with interest, but it is one method of obtaining a lump sum of money to travel the world.
Some people find that when they retire, they no longer need a huge property that used to provide a habitat for the whole family. If you could stand to move to a much smaller home in a cheaper area, you could potentially make hundreds of thousands by selling your current property. You might even have enough profit from the equity to buy a smaller house outright without having to secure a new mortgage, meaning you wouldn’t have monthly payments to meet and enough cash to fund an extended vacation. However, you will have to jump over numerous hurdles and pay third-party fees to sell your property, and living somewhere new when you return from traveling could take some acclimatization.
– Reverse Mortgage
Another way of obtaining cash which some people neglect to think about is to get a reverse mortgage, which is where a lender pays you either monthly installments or a lump sum of cash in return for some or all your home’s equity. At first glance, you might assume that means you must give up your home, but the reality is quite the opposite. You can only get a reverse mortgage on a home that is your primary residence, and you need to be over 62-years-old and meet a broad range of criteria to be eligible. You also need to maintain your home and continue paying homeowners insurance to protect the lender from needless devaluation. You’ll never have to meet monthly repayments, you can live out the rest of your days in your property, and the total repayable amount can never exceed your property’s value. However, reverse mortgages aren’t available to everybody, and it does mean giving up some of your children’s inheritance. You can click here for more information.
Making the Most of Your Retirement
As you can see from the finance options above, there are ways you can secure the cash you need to make the most of an extended vacation when you retire. Make sure you take each method into careful consideration to ensure you choose the right option for your situation.