Pay off your forward mortgage to reduce your monthly expenses.
o Re-model your home to accommodate aging limitations.
o Maintain a line of credit (that grows) for health emergencies and surprises.
o Cover monthly expenses and hold on to other assets while their value continues to grow.
o Cover monthly expenses and avoid selling assets at depressed values.
o Pay for health insurance during early retirement years until Medicare eligible at 65.
o Pay your Medicare Part B and Part D costs.
o Combine life tenure payments with Social Security and income generated by assets to replace your salary and maintain your monthly routine of paying bills from new income.
o Pay for your children’s or grandchildren’s college or professional education.
o Maintain a “standby” cash reserve to get you through the ups and downs of investment markets and give you more flexibility
o Combine proceeds with sale of one home to buy a new home without a forward mortgage and monthly mortgage payments.
o Pay for long-term care needs
o Fill the gap in a retirement plan caused by lower than expected returns on your assets.
o Pay for short term in-home care or physical therapy following an accident or medical episode.
o Pay for a retirement plan, estate plan or a will.
o Convert a room or basement to a living facility for an aging parent, relative or caregiver.
o Set up transportation arrangements for when you are no longer comfortable driving.
o Create a set aside to pay real estate taxes and property insurance.
o Delay collecting Social Security benefit until it maxes out at age 70.
o Eliminate credit card debt and avoid building new credit debt.
o Cover monthly expenses in between jobs or during career transition without utilizing other saved assets.
o Cover expenses and avoid capital gains tax consequences of selling off other assets.
o Purchase health-related technology that enables you to live in home alone.
o Pay for an Uber or Lyft account so you have mobility and access to appointments and social activities.
o Help your adult children through family emergencies.