Should I Upgrade Before Retirement?

Adam Answers

Adam answers in June's edition.

Question: My bride and I are planning to retire in early July. We have several RE income streams, but I’ll technically be out of a job. Would it be prudent to ‘upgrade’ our plane before retirement? Or, do most institutions look at overall finances and not just steady employment?

Answer: Major life events, such as retiring, can make financing complicated especially when being done simultaneously. For simplicity purposes it may make more sense to ‘upgrade’ before retiring. Lenders are going to review the last two years for sufficient cash flow. That being said, I would recommend that you have a good understanding of what your income will be post retirement. Budgeting for the financing and aircraft operation should be based on retirement “income” and just because you’re retiring doesn’t mean you won’t have cash flow. A common rule of thumb most lenders accept is forecasted “income” equal to 5% of your total marketable securities plus pensions, social security and other investment income like rental real estate and business investments. We have helped many AOPA members in your situation. We would love to talk in more detail about your needs.

Please call us at 800.627.5263. Have questions for Adam? He is happy to answer them. Submit your questions here. Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.

Adam Meredith
Adam Meredith
President of AOPA Aviation Finance Company
Adam Meredith, the longtime president of AOPA Aviation Finance Co., died after a long battle with cancer in December 2023. He is remembered for his passion for helping fellow pilots, leading a team devoted to putting flight training and aircraft ownership within everyone’s reach.
Topics: AOPA Aviation Finance Co, AOPA Products and Services, Financial

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