There are pluses and minuses to a reverse mortgage, which allows virtually anyone over 62 to borrow money against the value of his home without having to pay back the loan as long as he lives there. "The money doesn't have to be paid back until you either sell the house or until after your death," says Russ Barschi, a certified senior advisor and founder of Seminars for the Advancement of Financial Education (SAFE). "For many people, the value of the home is the bulk of their assets, if not all of it. A reverse mortgage taps into that value, without [the risk of] your losing your home."

While Barschi says that "for the right people, reverse mortgages are a wonderful thing," he doesn't recommend them if you have other assets. "The payment has to be recouped one way or another when you die. The mortgage would be due." Given the necessity of that large payment, says Barschi, "people with or without children tend to look at this differently. People with children typically have a vested interest in wanting to pass assets on to their kids. If you don't have kids, you don't care as much." For those with children, Barschi believes any mortgage or retirement funding is a family matter. "Discussing your affairs with your kids is very important," he says. "They might say, ‘Hey, we'll give you some money or fund your retirement. Then we'll get the house free and clear, without the obligation of having to pay back the reverse mortgage.'"