One of the ways that a reverse mortgage is often marketed is in highlighting its ability to enable you to travel more as well as the ability to buy stuff such as boats and RV’s. While some people get a reverse mortgage for this purpose, the number of people that use a reverse mortgage this way, in my experience, is quite small.
Some of you reading this are conservatives and are thinking it is irresponsible to use a reverse mortgage this way. Conservatives have the attitude of wanting to play it safe. You earned it, and you must protect it, because you never know what is going to happen.
Some of you reading this are free spirits and are thinking, “Heck yeah, baby! That’s the way you do it.” And you have the attitude that you worked hard, you earned it, you can’t take it with you and “spend ‘em if you got ‘em,” because you never know what is going to happen.
While there are not really any restrictions on how you spend your home equity, the question is whether using it to vacation or buy toys is the proper way to use a reverse mortgage. The answer to that question in most cases is that this is not the right way.
If you are well off financially, meaning you have plenty of retirement resources between pensions, social security, retirement savings and all the various insurance is in place, then using the reverse mortgage as fun money may not be that big of a deal.
The only time I have seen people actually get a reverse mortgage to buy stuff and travel is when one of the spouses was terminally ill and they wanted to create memories and have fun while the other was still alive and able to do so.
Ultimately it is up to you on how to use the reverse mortgage during your retirement.