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Mission Viejo Retirement Planning

Mission Viejo retirement planning has many facets. Mission Viejo, located in Orange County just south of Los Angeles, CA, has been named by U.S. News & World Report as one of the top places in the U.S. to retire. A main reason cited by many Mission Viejo retirees is the Southern California weather, with sunny days and warm winters.

With a population just over 92,000, this city also boasts more than 55 senior communities, more than 250 community care facilities for the elderly, and a network of hospitals and health care institutions. There's also several golf courses in this CA city, as well as a wealth of other recreational offerings from the arts to boating on Lake Mission Viejo.

Home Equity

The Southern California city also has a high cost of living compared to other parts of the U.S., with the median home price in Mission Viejo topping $440,000. For those interested in Mission Viejo retirement planning, their home is where they may want to focus part of their planning. According to a recent Gallup and Wells Fargo study, about a third of retirees and workers say they are planning to use their home equity as part of their nest egg.

To use that money in your Mission Viejo retirement planning, you'll have to sell your home and use the proceeds to buy a new home. Many CA retirees are planning to downsize. As part of your Mission Viejo retirement planning, you can buy a smaller home, then bank or invest the rest of the proceeds to supplement your Social Security checks, California 401k, pension funds, and other savings.

Reverse Mortgages

What if you don't want to sell your home? Consider a reverse mortgage as part of your Mission Viejo retirement planning. Through this FHA guaranteed program, homeowners 62 and older can "borrow back" part of the equity in their homes. The homeowner remains on the title and can live in the home for as long as they want. The loan becomes due when the last borrower sells, moves out of the house, or passes away. The loan can then be paid back from the proceeds of the home sale.

A reverse mortgage offers several advantages. The funds can be used for any purpose and are tax free. They also do not impact Social Security or Medicare benefits, an important consideration in Mission Viejo retirement planning. As a "non-recourse" loan, the borrower can never owe more money than the property is worth, regardless of the loan balance, according to mortgage experts.

Calculating how much you can borrow is based on several factors, including age, home value, location, and interest rate. The older you are, the more you can borrow, but the FHA does limit reverse mortgages to $625,000. There are several different types of reverse mortgages, including those that give you a lump sum, some that set up a credit line for you, and others that send you monthly payments. As you delve into your Mission Viejo retirement planning, you can choose the method that works best in planning your budget.

Financial planning specialists do warn that closing costs, which are about the same as those for a conventional home loan, must be factored into the equation when considering a reverse mortgage. This is especially true if you are planning to live in your home only a few more years.

Mission Viejo Retirement Income

The proceeds from your home or reverse mortgage should only be part of your Mission Viejo retirement planning. A whopping 83 percent of retirees reported in the Gallup and Wells Fargo survey that Social Security accounted for a majority of their retirement income. The amount you will receive each month is based on how much you earned during your career, as well as when you begin drawing your Social Security checks. The size of your monthly check will grow for each year you can wait before you begin claiming your benefits.

A majority of those in retirement also have 401k, IRAs, or some other type of retirement account, which also contributes to their monthly income stream. For many, these accounts replace a traditional pension, although almost half -- 49 percent -- of those surveyed reported that a traditional pension provides "a significant source" of their retirement income. Only 39 percent of current workers expect to receive the majority of their retirement income from a pension plan, the Gallup survey reported.

Professional Guidance

No matter what types of income you are looking forward to in your Mission Viejo retirement planning, you should consult a professional financial planner. This expert can help you determine if you are on track for a comfortable life in Mission Viejo. If you aren't, the expert can plot a course to get you back on track and give you a bright future.

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Retirement Planners In Mission Viejo

Simon Reeves
Simon Reeves
30 Enterprise, Suite #190
Aliso Viejo, CA 92656

Jerry Slusiewicz
Jerry Slusiewicz
30131 Town Center Drive, Suite 105
Laguna Niguel, CA 92677

Tami Simpson
Tami Simpson
650 Town Center Dr #920
Costa Mesa, CA 92626

Ryan Gunn, CFP
Ryan Gunn, CFP
2122 S. El Camino Real, Suite B
San Clemente, CA 92672

Corey Fast
Corey Fast
2400 E. Katella Ave.
Suite 410
Anaheim, CA 92806

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This website provides information related to the subjects covered. Before making any financial or legal decisions, a professional should be consulted.