Texas Tech University

How to stretch savings without working longer

Sun Herald

August 13, 2015

Sun Herald - Karen Arndt, 60, has tinkered with several retirement calculators, and they all generate the same finger-wagging advice: Keep working, they seem to warn. You're not even close.

One approach is a standby reverse mortgage, where borrowers open a line of credit that can be tapped when necessary. Opening a credit line while interest rates are low, even if you don't need the money now, can result in a larger credit line now than when rates are higher, said John Salter, an associate professor of personal financial planning at Texas Tech University. And the line of credit continues to grow over time.

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