Consult lender before selling

QUESTION: I am a lady in my 70s, very alone and trying to make decisions that seem to be wrong. I have no family and my only asset is slowly being eroded due to a reverse mortgage. I believe I might have to consider selling my home. Is there any easy way to get out of a reverse mortgage?

ANSWER: A major factor is whether you have a fixed rate or a variable rate.

If your rate is fixed it is possible there could be heavy exit fees; but if the rate is variable there should be no high fees if the loan is paid out from the proceeds of the sale of your home.

Your first step should be to talk to your lender and find out exactly what would happen if you sold.

QUESTION: I am thinking of investing in the stock market, but one day it’s good news and the next, there’s a huge slump for whatever reason. I understand you can’t expect to make a fortune overnight, but realistically, how long should you give it before pulling the pin?

ANSWER: Keep in mind that bad days in the stock market make for big headlines, while good days are hardly noticed at all. If you are talking about specific stocks you will need to talk to your broker to decide whether it is better to hold or sell.

However, if you hold shares by way of index funds, which by definition cannot go broke, it’s really a matter of hanging in when the market is having one of its normal down days.

Keep in mind that you have not lost any money until you sell, and in good times shares will continue to give you an income even when their prices are down.