Hi:
Another good idea is to get a line of credit for as much money as possible before you stop working. This way you have access to funds if you need some.
Many people get a line of credit tied to their home. With or without a mortgage, funds are available at very low rates when they need them.
For example, if you have a paid-for home, you can get a line of credit for, say, $50,000. Then, if you decide to buy a car you can write a cheque and use that money at very low rates. You don't have to fiddle arrranging money at that time, and better still, if you are not working, it is hassle free.
The same applies with a mortgage. Naturally the rules of mortgage proportions apply. That is, you can't borrow more than the percentage of your debt-to-equity proportion than your bank or credit union allows.
This is a good idea if you need to make major repairs or renovations to your home that will increase the value much more than the capital spent. It can also increase your enjoyment of the home.
This is assuming, of course, responsible behaviour and commitment to be debt free.
It will cost you an appraisal and legal fees in the order of approximately $500 to do this. However, some banks have specials where they waive these fees if a certain amount is set up.
Remember, you don't have to use it, but it's there if you need it.
M.
retirement and money
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