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So, has anyone included this in your possible retirement scenarios?

I was doing some research and ran some numbers.

I figure that by the time we're ready to retire we may have about $1,750k. So, with a SWR of 4%, this would yield $70k. With both of us maxing out our SS, figure about $30k, to total $100k. BUT, we still need somewhere to live.

We'd really like to move to Hilton Head Island - we vacation there every year and love the area. I've looked at single family homes for sale and one I like was listed for $440k. Assuming a 4-5% increase in value, in 14 years it would cost about $800k.

So, I went to the NECM website and the example they gave was for a home valued at $206k, yielding $6k per year from a reverse mortgage. I'm thinking an $800k home should yield 4 times that or $24k.

So, taking $800k out of retirement accounts, paying 35% taxes or $280k, would leave us $670k in assets.

Results:
SWR on $670k assets = $26,800
Income from home = 24,000
SS = 30,000
TOTAL = $80,800 and no rent or house expense

Now, we have no kids. And, we both come from large families, i.e. 6 siblings each. We have no great desire to leave anything to any of them, so this seems like a way for us to have our dream house in our retirement and still have decent income to enjoy our twilight years!

The biggest drawback is that most of the programs require both parties to be at least 62 years old. I'll only be 59 when I hope to retire and DH is 4 years younger than me!

Other than that wrinkle I haven't worked out yet, what do you all think?

3MM
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