A reverse mortgage is available to anyone who is at least 62 years old and owns a home outright, or has a small mortgage balance remaining.

While a reverse mortgage can indeed be a viable way to generate income, it is very important to understand that after you take out a reverse mortgage, you will still be responsible for paying the property tax, the insurance premium, and all the maintenance costs for your home.

If you pay off your mortgage before retirement, you take a huge financial load off your shoulders. You also become eligible to take out a reverse mortgage once you turn 62.

It's easy to underestimate the real cost of home ownership.

Pay off your mortgage before retirement, and that's one less bill you'll have to worry about when you're on a fixed income.

If there is anyone dependent on your income - parents, children, relatives - you need life insurance.