If you were given the choice of a brand new car or a vacation getaway, which would you choose?
A practical person would probably choose the car- and why not? A car is something you’d use every day as opposed to a vacation which only lasts a certain amount of time.
But, will a car make you happy? Happier than a vacation?
A recent study from San Francisco University found that the average person’s opinion about what truly makes them happy isn’t “practical” at all.
Considering the fact that happiness is a suggestive emotion, it should be no surprise that tangible and practical material goods are not the answer to happiness- though our human efforts would suggest otherwise.
So, what does this have to do with your reverse mortgage?
If you are at the qualifying age for a reverse mortgage, then that means that you have some options to think about when it comes to your funds. It means that there are some things to consider when deciding whether to leave your house to your beneficiaries, or to use your reverse mortgage money towards other non-material experiences.
Things to consider:
Can Money Buy Happiness?
We’ve heard it over and over again. Money can’t buy happiness, and for the most part, this is true- to an extent.
Let’s be honest here. Money pays the bills. It keeps power flowing through your house, it puts gas in your car and food on your table. Without these, life is harder and “happiness” is replaced by anxiety, worry, and stress.
When you decide on a reverse mortgage plan, that extra money will help take care of those necessities. Whether you have supplemental income or not, that extra cash from your payout will at least give you a less stressful lifestyle.
Let’s say you don’t need that extra money for necessities though.
Maybe the majority of your wealth is invested in your property and therefore, you plan to leave your family or beneficiaires with your beautiful home. Maybe you decide to deprive yourself of the fruits of your labor so that your children can decide what to do with the house.
Memories vs. Money
Sometimes beneficiaries decide to live in the house, and sometimes they decide to sell it and divide the monetary value amongst themselves.
The extra cash given to your beneficiaries will probably help them out a great deal when it comes back to those necessities. That is definitely something to think about. The money left over can buy a lot of things…..
But it can’t buy memories.
The traditional idea that money will allow you to buy the things that make you happy (cars, houses, clothes, jewelry etc) is antiquated. In fact, Gen Z and Millennials have been raised on movies and shows depicting insanely rich and insanely depressed people.
What scientists have found is that because the value of material goods depreciates throughout the years, people often tend to feel less happy with the items bought.
Experiences however, endure in the memory as a feeling and people’s behavior when asked about those experiences show more happiness.
Knowing this, why not use the money from your reverse mortgage payout to buy experiences with your beneficiaries?
Who Benefits?
When you decide upon a reverse mortgage plan, everyone wins.
You’ve worked your whole life to afford the assets you have. While leaving behind assets for your beneficiaries is a tried and true tradition, it’s not the only way to leave behind a legacy.
Harvard Business School conducted research concerning the correlation between money and happiness with an emphasis on material goods vs experiences.
They found that people who prioritized money as their primary means of happiness were far more depressed than people who prioritized experiences.
Meaning, sitting on a pile of gold will make you rich, but it will often be accompanied by loneliness.
Instead of being lonely on that mountain of gold, a new trend retirees have adopted is to buy experiences for the family, with the family, while they are still here-instead of leaving behind all the money.
Experiences to Share
When it comes to what type of experiences might mean the most to your family, we have found that the most important factor is time.
Giving your time to a loved one can be as simple as taking a walk in the park with good conversation, or even sharing a meal. Other popular ways to spend time with someone include but are not limited to
- Travel- go on vacation to a place you’ve always wanted to see
- Attend a show- go to a ballet, a play, or a music festival
- Extravagant Dining- get dressed up and enjoy a special meal
You can use your reverse mortgage money to help your family NOW, not later. You can build memories that will last forever, instead of lump sums of money that will be used on forgettable goods.
If you have any questions about what reverse mortgage options are available to you, or how you can leave behind a legacy of fond memories to your family, give us a call or check us out here!
