Unfortunately for a lot of seniors, retirement means no more paychecks. However, one financial planner believes that the key to retirement paychecks lies within reverse mortgages.
"Ideally, fixed expenses in retirement would be covered by guaranteed income, such as Social Security and pensions, so that your basic lifestyle isn’t jeopardized by stock market fluctuations," writes Certified Financial Planner and author Liz Weston, in her NerdWallet piece.
"Another option could be a reverse mortgage, a loan that can convert some of your home equity into a stream of monthly checks. If you have a lot of equity but still have a mortgage, a reverse mortgage could pay off your loan and eliminate those monthly payments."
Weston laid out a few options for retirees and revealed why these options would be beneficial. She also outlined the cases in which they would be most useful as financial plans often vary from one retiree to the next.
"Other tips to help retirees stabilize their finances in their post-working years include leaning on traditions like the '4% rule,' which financial advisors often suggest and which involves withdrawing 4% of your portfolio in the first year, before adjusting the amount for inflation each following year," writes Weston, according to Reverse Mortgage Daily.
"Historically, this strategy has lowered the risk of depleting finances."
To learn more about Weston's tips for retirees and why a reverse mortgage could be a way to secure a retirement "paycheck" click here.