Fourth of July signifies the epitome of the summer season with barbeques, beach days, and fireworks as we celebrate our country’s history and freedom. Independence Day also serves as the perfect time to think about your own financial independence.
What is Financial Independence?
Financial independence means different things to different people. For some, financial independence means not having any debt. For others, it signifies having a comfortable amount of money stored for emergencies. Financial independence could even be defined as having the ability to retire early.
One of my favorite definitions is one used by financial editor and writer, Jonathan Chevreau, author of Findependence Day. Chevreau describes financial independence as working because you want to and not because you have to.
Financial Independence vs. Retirement
Financial independence and retirement should be inseparable. While you could be financially independent and not yet fully retired, no one should be retired without being financially independent.
So what is Chevreau’s number one rule for becoming financially independent? To pay off your home in full. Chevreau believes that eliminating a mortgage lays the foundation for a financially independent retirement.
Age in Place
Not only does financial independence affect your savings but it also influences your ability to age in place. The ability to remain in control of medical decisions, finances, and stay in the home you love are intangible freedoms that are valuable to today’s retirees. Technological innovations and community efforts to encourage seniors to maintain social connections during retirement make today a better time than ever to age in place. (Read more on creative ways to age in place)
Use a reverse mortgage loan to achieve financial independence
One Reverse Mortgage continues to help adults 62 and older achieve financial independence by offering reverse mortgage loans. A reverse mortgage allows borrowers to convert the equity in their home into tax-free* cash that is used to pay off an existing mortgage. A reverse mortgage can also benefit borrowers who own their home free and clear. For these homeowners, a reverse mortgage has the potential to act as an additional source of funds that is often taken through our line of credit option. This money can be used towards whatever it is that will make your retirement a more comfortable one.
Fourth of July is the perfect time for you to think about your definition of financial independence. America has always been known as the land of opportunity. It’s time to take advantage of these freedoms, particularly the opportunity to achieve financial independence.
Wishing you a happy Fourth of July from all of us at One Reverse!
*Please consult with your financial advisor.