HECM

There Are a lot of Boomers

10,000 Americans each day are turning 62 and few of them have any funds saved for retirement and those that do, are underfunded in their retirement portfolios and they may not have enough funds to protect them as they grow older and face medical expenses due to aging and other unplanned life events.

I feel that the FHA and proprietary reverse loans will become part of everyone’s retirement plan, because a home is a senior’s greatest assist and why not use the equity in it to pay for unplanned expenses and still be able to remain in their home?

Seniors will start to see that by using a reverse loan to assist in funding their retirement as a viable option to protect them from drawing down on their retirement funds too often and also potentially avoid tax consequences such as paying Capital Gains on any withdrawals.

It’s an obvious and safe solution and should not be overlooked by any senior homeowner and they owe it to themselves to consider the loan as a possible solution allowing them to eliminate their concerns, age in place and not be afraid to consider its use as a possible solution to remaining financially secure.

http://reverseloanmoney.com

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Retiring With More Money

As the need for utilizing one’s equity to leverage a retirement fund increases, more seniors will consider using a reverse loan to protect themselves from outliving their savings and running out of money.

Boomers are living longer than previous generations and the number 1 fear for any senior, is that they will not have enough funds saved for the remainder of their lives and what will happen to them if they use up all of their retirement funds and investments?

But the use of a reverse loan can possibly remove that fear and the negative image and myths that have plagued the FHA HECM for many years, are finally changing and are now seen in a positive light.

http://reverseloanmoney.com

More Financial Advisors and CPA’s are recommending to their senior clients that they consider using it to protect their retirement funds from unnecessary draw-downs, taxable consequences and preserve their portfolio.

And now the mortgage is being seen as a creative and beneficial option to allow seniors to continue to live independently in their homes and be free of the stress and worry of running out of money in the future.

With the current concerns about Medicare and Social Security becoming insolvent in the near future and that Medicaid/MediCal will not be able to meet the needs of an aging population, is very scary and depressing and how will seniors be able to live comfortably and have enough money to maintain their lives?

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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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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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