If you’ve heard the good news about the equity release schemes available in your area, then you might want to take the next step. Of course, if you’ve already had the funds released to you, then you have a completely different problem. You see, a lot of guides talk endlessly about how to get into the equity release system, but the truth is that once you get the program underway you will still have questions and problems that need to be solved.
The number one problem that a lot of homeowners face after they pursue equity release is that they need to make sure that they have a life that’s truly worth living. In other words, they want to be able to really enjoy retirement to the fullest instead of worrying about money. Sounds nice, right?
The truth is that it doesn’t have to be just a dream. It doesn’t have to be just something that’s nice to have. If you’ve already received the funds in a lump sum, there’s a series of steps that you need to take.
First and foremost, you should know that the money is tax-free. You’re not going to have to set aside a percentage of the money for taxes, taking good money away from your life that you won’t be able to get back. You can think of this money as “starter” or seed money that you can use to fund whatever it is in your life that you really want to achieve. For example, if you really wanted to be able to take a vacation, then you could get away and take that vacation. Of course, you will want to make sure that you don’t burn through the money too quickly. Yet if you’ve been dreaming of that vacation your whole life, why would you want to do anything else? Sometimes it can be healthy to give into what you actually want to do, not just taking care of the things that you know that need to get done.
You have to set a budget that’s realistic. If you don’t want to live on pennies, then don’t assume that you’re going to live that way with your budget. You need to make sure that you can actually choose to have the type of life that you want to lead. Yes, this might mean that you need to sit down and figure out what you want to do — not just what you think that you should do. That can lead to a lot of soul-searching, but now that you’re retired you have time to really think about that.
Maybe you want to help relatives raise their children. Maybe you want to open a business. Maybe you want to just be able to garden in the sun and enjoy what growing season is available.
Remember that no matter what type of equity release program you choose, you can generally stay in the home that you’ve loved for such a long time. That means that you don’t have to give anything up just to get what you want and where you want to go.
Overall, if you really think about it, there are a lot of decisions ahead of you. If you still need help, it’s best to reach out and talk to someone. The equity relapse scheme is not new, and it’s a plan that works. Get in touch with a financial expert that definitely knows the inner workings of the system, and you will have a plan that can take you to retirement and beyond — thanks to the equity in your home, of course!