DO YOU REALLY WANT TO RETIRE IN DEBT?

Reverse mortgages sometimes may be necessary. They can provide an additional source of funds for individuals who have equity in their home but have insufficient income to cover the costs of a healthcare emergency or some other shortfall.

It can also allow someone to continue to live in their home without having to pay off the mortgage. When the homeowner dies, they lender receives the home. They once were targeted primarily at low-income homeowners, but they have begun to appear among wealthier families.

Unfortunately, many individuals in Ohio may be heading into what should be their retirement with little in savings and substantial debt. Even if you have substantial income, this may not be an ideal situation. The last decade has seen aggregate debt for those age 65 and older increased by 170 percent. Some are refinancing homes with 30-year mortgages while in their 60s.

If you don't have an estate plan, you may not have an accurate picture of your true financial condition. One useful feature of taking the time to plan for your future is that you obtain clarity of your financial condition. Given that few individuals today will receive a defined benefit plan pension, unless you plan to work into your 70s and beyond, you should take steps as soon as possible to create a viable plan for your retirement.

While taking on more debt may seem "cost effective" given the low-interest rates, you should consider what would happen if you lost your job or suffered a medical emergency that left you unable to work.

Additionally, a comprehensive estate plan ensures that you have important documents, like powers of attorney and healthcare directives in place, should you suffer an incapacitating condition.