Whether you need the money or not, a part-time job during retirement can be a great option. Many retirees miss the satisfaction of working every day and look into part-time work.
When thinking about retirement planning, here are a few part-time positions for retirees to consider:
Tour Guide: Do you have excellent verbal communication skills and humor? This job is for you! Consider applying to be a tour guide if your city is booming with tourist attractions such as museums, trolley rides, or cruises.
Freelance Writer: Freelance work allows you to make money while working at your own pace. This is a job worth looking into if you were a former journalist or were an expert in your field.
Retail or Sales: A part-time job in retail or sales may sound appealing, especially if you miss daily interaction or have a competitive drive. Since many stores hire seasonal employees around the holidays, you won’t have to commit to a full year. You might even get an employee discount.
Crafter: If your friends and family constantly compliment your woodworking or other hand-crafted items, consider selling your finished products. Online sites such as Etsy and eBay make it easier than ever for crafters to share and sell their work.
Tax Preparer: This is the perfect job for former CPAs or anyone who is financially savvy. Most of the workload occurs between January and April, leaving plenty of time for vacation getaways, investing in other hobbies, or spending time with family.
Thinking of applying for a reverse mortgage, but don’t know if you are eligible? Below is a list of borrower and residential requirements:
- Must be 62 years or older
- You, the homeowner, must occupy your permanent residency for at least 6 months and 1 day out of the year
- Stay current with property tax and homeowner’s insurance
- Only have 1 FHA loan and be free of any delinquent, federal debt
- Single family or 2-4 unit homes
- HUD approved condominiums
- Most manufactured homes built after 1976
If you are attempting to use a reverse mortgage on a vacation home, non-HUD approved condos, or rental properties, you will not be approved.
In summary, the homeowner will continue to receive monthly payments as long as he/she lives in the house for 6 months and 1 day out of the year, moves, or passes away.
Many homeowners have heard of a forward mortgage, but what about a reverse mortgage? To understand a reverse mortgage, let’s take a look at both types of mortgages:
In a forward mortgage the money provided from the lender to the borrower is used to purchase a home. Throughout the duration of the loan, the borrower makes monthly payments to the lender. In this situation, the borrower’s debt is decreasing while the equity in the home is increasing.
Also, in a traditional mortgage the buyer is expected to make a down payment and show credit history before being approved for a mortgage.
A reverse mortgage is the exact opposite of a forward mortgage. The homeowner actually receives monthly payments by converting equity from the home into cash. So in this case, debt increases while equity decreases. A down payment is not required, however other fees are associated with a reverse mortgage but these fees are typically built into the loan to avoid out-of-pocket costs.