A Second Act

Through our youth, most of us were busy either attending college, working or doing both at the same time and thinking about how we wanted a fulfilling life and make piles of money in the process.

Or “not”, maybe you “partied” your way through this period of time.

Then you married, had a family, a mortgage and all the obligations that came with those choices.   Regrets?   Maybe, maybe not.

Once in a while you managed to afford a vacation but the dreams that you may have had when you were young, probably fell away and now are seen as unattainable.   Buried under the responsibilities of marriage, parenthood and the plethora that comes with it, you gave up on the interests you may have been passionate about.

But sometimes in those quiet vulnerable moments, they return.

Years pass quickly and you have no sooner begun your career and profession, when you find yourself on the verge of retirement and without the career you had for years that was your guiding purpose, you find yourself adrift.

Your identity you cultivated over the years, vanished and now you are unsure what the last part of life will be like because it feels empty; there is no purpose…..

And there is the distinct possibility that you won’t have enough funds to retire and will be forced to continue to work well past your retirement years, because you are burdened with a mortgage.

However, you could use the funds from a reverse loan to get out from underneath it and possibly have additional funds in a Line-of-credit and not have any mortgage payments ever, again.

And having this money available to use for any purpose, could open up possibilities to move yourself forward, towards whatever it is you are passionate about and reignite those dreams from long ago.   And begin a very rewarding and satisfying second chapter in your life as a retiree.

And possibly fulfill that dream that you had so many years ago?

Why not?

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Retirement and “Reinvention”

The Boomer generation is more likely to find something else, another avenue of expression for their “Second Act” in life after retirement then the previous generation.

Boomers tend to be healthier, active and more engaged in life, rather than being passive and giving into physical changes in their health and personal relationships.

And certainly they don’t plan to give into being old or elderly, because they  ( And myself included) feel that there is still so much more to do in their lives and plan on enjoying every moment of it right down to their last breath.

After entering the work force, marriage and having a family, many of us gave up on some of the dreams we may have had when we were younger because we became obligated and sometimes burdened with responsibilities to our family and our jobs.

And time went on and the dreams slipped away and seemingly became unrealistic and unreachable and sometimes forgotten.

The hurdle to making these latent dreams happen now, might be financial and if that is the reason for feeling as though you still cannot pursue your dream consider using some of your home’s equity by putting in place a reverse loan.

There won’t be any mortgage payments and when you pass away, your home will still go to your heirs and they can keep or sell it just like they would as of this time, if you were to “exit”.

“When you think it’s too late, be careful and don’t let that become your excuse for giving up”  Deshun Wan.

What would some of those dreams look like?

Culinary school, wine making, travel expert, anything in the Arts, getting a new college degree in a field you are interested in, taking a hobby to a new level?   The possibilities are endless for reinvention of ourselves and the only limitation comes from our lack of belief that it’s still possible.

The equity you have in your home could certainly be a resource to fund your next adventure, your next chapter in your life and possibly facilitate a new and life fulfilling experience for you that you never thought could be possible.

Why wait?

 

 

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How to Buy a Vacation Home

If you are a senior and  own your home but are still holding out on that dream of having the ultimate vacation property which you have wanted for years, you might just be “sitting” in the resource to make that dream a reality.

Why not use funds from a reverse loan to purchase that cabin, beach house or even a tree house?  Why not?

If you have enough equity in your residence you could possibly qualify for the FHA reverse loan or a Jumbo reverse mortgage and use the funds from it to purchase a second property.

Its much easier to qualify for a reverse mortgage then traditional mortgages, because they are not Underwritten using Debt to Income ratios or FICO scores, but are based upon residual income and verification of 24 months of “timely” payments for property taxes, Homeowners Insurance and any other expenses associated with the client’s residence.

You will still be on Title of your residence and continue to own it and just as you wish, it will go to your estate when you have passed on.

Not the Lender.

You won’t have any mortgage payments for the reverse loan and if the vacation property does require a mortgage (If you can’t pay “all cash” for it), you could cover those payments by renting it out during the local tourist season and still have it available for yourself whenever you want to visit it and enjoy your vacation property.

So where is your “dream” property? A beach, a lake, the mountains, the desert or an island?

What’s holding you back from enjoying your retirement years that could include more skiing, fishing, golfing, sailing or simply sitting back in an Adirondack  chair on a deck, looking at blues skies, trees and hearing birds sing?

That sounds really nice to me as well.

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Reverse Loans and Second Homes

A reverse loan has more than just one use for a homeowner other than refinancing their residence and it’s beneficial to know that funds from the loan can be used to purchase a property.

Most senior homeowners and Realtors are unaware of this option and could be using it to “downsize” into a smaller property or to purchase the “dream” home a senior may wish to buy in a 55+ community or move to an area of the country that they have always wanted to live in.

Another terrific option is to purchase a Vacation home.

Everyone often dreams about having a cabin, a beach house, a home on a lake or some other wonderful property that allows them to enjoy themselves and have fun and quite often, make it a family destination  for vacations and family reunions.

If qualifying for  mortgage payments using income and credit isn’t realistic  on a second property isn’t possible, why not use the equity in one’s residence to complete the purchase and possibly pay “all in cash” for the dream home and not have payments on it, and no payments on the reverse loan because they are not required.

How perfect is that? Two homes without mortgage payments.

How is this possible you are thinking?   Contact me to find out and possibly acquire that vacation home you have always wanted.

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The Costs of Care Giving

As the Boomer population ages and the reality begins to loom that at some point they may need someone to provide them with “care giving” but no one wants to talk about this possibility happening to them.

But as we age and I’m going to be 72 myself  ( Yikes, when did that happen?) our bodies are going to start to give us trouble as we begin our slide down the slope of aging and at some point, we may need help.

Ideally the Boomer generation has taken better care of themselves then our own parents did and we certainly are much more active than their generation who smoked, didn’t exercise and had high fat diets.

But at the least, they didn’t have as much stress in their lives as we seem to have in our’s and their generation lived a much slower daily pace compared to the hectic lifestyles so many of us have in this period of time.

Hopefully those of you who are reading this post and are of a “certain age”, will manage to dodge falling apart and having to rely on a care giver.   But what happens if you need one and you don’t have Long-Term-Care Insurance?

Medicare will not pay for this service in case you were under the impression it would, you have to pay for it.

You will have to rely on your own retirement funds if you happen to have any and pay a professional care giver or rely on family members to take care of you.   And that’s a terrible option.

There are two kinds of “costs” in this equation, the actual monthly expense that can run $4000 or more each month while you are helpless or the physiological  and turmoil and burden to your family members who will be overwhelmed by the responsibly of taking care of you.

And if you don’t have enough funds to cover this expense, it will be up to your children to pay for it and in many family situations, the adult children will fight among one another and it typically will fall to one of the children to pay for all the expenses and also to attend to your needs.  And the one’s who refuse to help in any capacity, will disappear.

As for paying for the care of a professional, licensed and Bonded care giver that expense could be paid by the funds from a reverse loan and it will become a safe and valuable option for money to cover the costs and relieve the adult children from using their own funds to pay for your care.

It’s something to think about, utilize one’s equity to pay for your own needs and not rely on your adult children and keep your dignity and keep your family intact.

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