A Home Improvement That Will Help You Retire

Home Renovation
Pexels

It's a dream of many homeowners to pay off their mortgage before they retire. However, expenses can pile up as we age and this simply may not be possible. In an effort to put your home to work paying for itself, energy improvements such as solar panels can reduce your household expenses and make paying off your home easier.

Below are some things to consider when planning how to:

  • pay off your home before retirement
  • improve the value of your house should you choose to sell, and
  • reduce your monthly utility expenses long-term

Risk Tolerance

If you're close to retirement and your current investments are held in conservative, low-return funds, then paying off your home before retirement is critical and necessary. Your money may be safe, but you're likely paying more in mortgage interest than you're earning on your account.

If you struggle to save on a regular basis, paying off your mortgage before retirement will likely make it much easier for you to relax and feel safe leaving the working world. Getting a short term loan for a solar install will pay off quickly and will provide you with reduced monthly expenses for life while you live in your home.

Tapping Into Retirement Savings To Pay Off Your Mortgage

When your 401(k) becomes available to you at 59 1/2, it is fully taxable. Depending on how much you take out, you may be pushing yourself into a much higher tax bracket to save a small amount of mortgage interest.

However, there is great peace of mind to be gained by paying off your mortgage, and this peace of mind can make your retirement planning much simpler. Additionally, if you plan to use a reverse mortgage to fund your retirement, paying off your house first will make setting up the reverse mortgage a much simpler affair.

Finally, it's important to remember that a fully paid for house is pretty good investment bet. Again, this goes back to risk tolerance. If you're approaching retirement age, there's less time to make your investment money back in the event of a market crash or correction. If the housing market crashes, your home may be worth less but you have a roof over your head and riding out the market wave will be simpler and safer.

Benefits of Solar Power Improvements

Depending on where you live, the addition of solar power to your home can both improve the value of your home and reduce your monthly utility bills. You may qualify for a tax credit for your solar investment and the short-term debt of a solar loan can lead to long-term savings. When it comes time to sell your home, a solar system that offers specific evidence of utility savings can be a great selling point.

Solar offers other benefits, including tax breaks and financial incentives. You can take a sizable percentage of your solar install off of your federal taxes and your state may offer incentives as well.

Finally, installing solar on your home may put you in the position of being able to sell power back to your electric power provider. Be sure to check out current rules and regulations on this particular method of actually making money off of your house as not all utilities will allow this.

A paid-for home can give you great peace of mind and make your retirement budgeting process a lot simpler. Going the extra step of installing solar power on your house is a fairly quick way to both improve the value of your property, reduce your long-term expenses and possibly even make money on your home by selling power back to the grid.

Similar Articles

Memorial cleaning

Monument cleaning is the quickest and cheapest way to maintain precious monuments. This way you can revive your monuments and get them renewed with ease and less effort. There are however some tips to make this option really easier and effective for you

5 Great Ideas for Family Fun This Summer

As the weather starts getting warmer, every family anticipates time spent together enjoying summer activities. Not sure how to entertain your family this summer? Here are five great ideas to bring your family together during this fun time of year.

Graduation Invitation

There are many businesses that design and print invitations, however, if you want to give them your touch, you can do them on your own and we assure you that in addition to looking good, you will not spend as much money. Here are some suggestions so you can make some amazing invitations.

Moving Out: What You Need to Organise for Your New Home

Moving out is exciting – finally having your own home comes with independence but also a lot you need to organise. Transporting your furniture to the flat, buying new goods, and potentially renovating bits and pieces here and there can be quite time-consuming.

https://www.discernliving.com/looks/eclectic-dining-room--lId-9540

Farmhouse style of homes are all about adding rustic and attractive vibes to your home. And the best way to do so is by adding the right home décor. It is all about warm vibes, laid-back liveliness, and gloominess.

Icicles hanging from the roof of a house,

In the UK Winter officially lasts from the 22nd of December 2019 to the 20th of March 2020, however, if you live in the UK, then you will know that winter tends to feel like it lasts much longer than that. We can be experiencing winter weather anywhere from October through to April or May.

Moving heavy furniture

The moving process comes with overwhelming choices like which property agent to choose, which house to purchase, which furniture to take and which one to discard, do it yourself or hire the expert movers of a nearby moving company, and others.

moving house

If you are planning to move, one of the things you may be considering is moving to a new area. There are all sorts of reasons why people decide to relocate, such as employment opportunities, moving closer to family and friends, or just to escape the area they currently live in. 

modular kitchen designs

The kitchen is an important part of our home and that’s why it should be perfect in every sense. You have to take care of its looks and functions. When you decide to upgrade your kitchen into something modular, you have to keep some important points in mind.