senior retirement planning: What's the Largest Asset in Your Retirement Portfolio? - 06/19/14 02:31 AM
What's the Largest Asset in Your Retirement Portfolio?
According to an article published in Reverse Mortgage Daily, housing assets continue to be the largest dominant force in many senior retirement portfolios, revealed a report from the Mortgage Bankers Association's Research Institute for Housing America.
This isn't particularly shocking news, even after 2010 when housing prices bottomed out. Houses are still the greatest asset in a senior’s retirement portfolio because they remain the biggest investment many Americans will make during their lifetimes. It's worth more than stocks, social security and a car all-together. 
In addition, a study has revealed that older Americans who own homes … (2 comments)

senior retirement planning: "In Lieu of a Retirement Plan…Get a Reverse Mortgage" - 01/30/14 11:55 PM
"In Lieu of a Retirement Plan…Get a Reverse Mortgage"
One of the big misconceptions about a reverse mortgage is that it should be used in lieu of a retirement plan or if a previous plan fell through because of one reason or another. 
This is not true.
This is one of the reasons why the reverse mortgage program earned a reputation for being a "loan of last resort" or only use in case of emergencies. 
The reverse mortgage is a loan, which means you have to pay it back, but only if you pass away, are unable to live in your primary residence … (4 comments)

senior retirement planning: Baby Boomers Take Advantage of Their Empty Nests - 01/16/14 11:17 PM
Baby Boomers Take Advantage of Their Empty Nests
Even while empty nests are potentially becoming a thing of the past, it seems some baby boomers are trying to combat this reverse trend by helping out their children monetarily before letting them move back home.
According to an article published in Reverse Mortgage Daily, a Del Webb Baby Boomer Survey, which surveyed more than 500 baby boomers this past September, found that 68% of "empty nesters" are much more likely to offer financial assistance than have them move back in.
One reason could be that they have decided to downsize, meaning less space for a child to … (0 comments)

senior retirement planning: It's Important to Adjust Expectations... No Matter the Situation - 01/14/14 11:26 PM
It's Important to Adjust Expectations...
No Matter the Situation
The retirement expectations of middle income Americans are changing. The preconceived notion that Social Security and Pension funds will be enough to sustain a comfortable retirement is falling by the wayside.
A survey, published in Reverse Mortgage Daily, conducted by the Center for Secure Retirement, however, demonstrates that, while most Americans are aware of the current situation, few have taken the steps necessary in order to prepare themselves for retirement.
Out of all the people surveyed, roughly between the ages of 49 and 67, only 8% have a detailed plan laid out for … (6 comments)

senior retirement planning: Reverse Mortgage FAQ: "Should I Get a Reverse Mortgage If I'm Moving…? - 01/13/14 11:19 PM
Reverse Mortgage FAQ: "Should I Get a Reverse Mortgage If I'm Moving...(Eventually)?
A reverse mortgage or a home equity conversion mortgage, is a mortgage that pays you based on your age, home equity and is contingent on whether or not you live in your primary residence.
Some homeowners, however, question their decision to get a reverse mortgage, especially if they have plans to move in the near future. It's a valid question considering the loan will become due and payable if they are no longer live in their primary residence, for whatever reason, because the amount a borrower can potentially receive is also … (10 comments)

senior retirement planning: Why Age In Place With a Reverse Mortgage? - 11/22/13 04:01 AM
Why Age In Place With a Reverse Mortgage?
The first thing to consider…is whether or not you want to age in place.
When you chose to age in place, you chose to live in your home, comfortably and safely, until the end of your days. This is particularly important if you cherish your home, your neighborhood, the connections you've made, etc. and don't want to let it go, despite the fact that you're retired.
In truth, your home can provide the perfect conditions for you to age in place. However, it's crucial to establish what changes will need to be made to the home … (0 comments)

senior retirement planning: "I'll Just Live Paycheck to Paycheck and Never Worry About Saving." - 11/22/13 01:21 AM
"I'll Just Live Paycheck to Paycheck and Never Worry About Saving."
An article, published in MoneyNews, offered some shocking, but ultimately unsurprising satistics:
46% of Americans have less than $10,000 saved for retirement. (Employment Benefit Research Institute) 40% of baby boomers now plan to work until they die. (AARP) 36% of Americans say they don’t contribute anything at all to their savings. [CNBC] 87% of adults say they are not confident about having money for a comfortable retirement. (Lifehappens.org) Expected retirement age is up to 67 from age 63. (Zero Hedge) Why are they shocking? I never thought it would be this bad, … (4 comments)

senior retirement planning: The Sky's the Limit... - 11/19/13 11:52 PM
The Sky's the Limit...
on Long Term Care Costs
Nursing home care, or in-home care, is expensive and the costs continue to raise, according to an article published by Reverse Mortgage Daily, which cites the findings of a survey involving more than 16,000 care providers nationwide. 
While the costs of nursing homes versus in-home care or living communities vary, prices are rising all across the board. 
Currently, the cost of a private room in a U.S. nursing home averages roughly $94, 170 per year and the costs of assisted living averages $41, 124, according to John Hancock Life Insurance Company. Nursing home … (4 comments)

senior retirement planning: What's a Baby Boomer to Do? - 11/18/13 11:34 PM
What's a Baby Boomer to Do?
With More Debt During Retirement...
It's troubling to see that the debt that continues to trouble baby boomers as they enter their retirement is showing no signs of slowing down.
In fact, according to an article published in the New York Times, the Consumer Financial Protection Bureau estimates that "30% of all homeowners 70 and older have mortgages to pay off. In 2001, just 8% carried mortgage debt into retirement.
This is an increase of 22% in just over a decade. 
Most of this debt can be attributed to the Recession of 2007-2009. As home values plummeted, homeowners owed … (8 comments)

senior retirement planning: Who Will Benefit from the New Reverse Mortgage Changes? - 10/15/13 01:14 AM
Who Will Benefit from the New Reverse Mortgage Changes?
Reverse mortgages are a viable option for seniors looking to tap into their home equity to, either get rid of outstanding debt before retirement, or save up for the proverbial "rainy day."
The housing crisis, and subsequent Recession of 2007-2009, however, put a damper on those plans. While the reverse mortgage continued to be a source of untapped income for baby boomers, there was considerably less amount of  money they would be eligible for.
Some unprecedented problems arose during this time, mainly with non-borrowing spouses and loan defaults, when homeowners were unable to pay … (0 comments)

senior retirement planning: FHA Urges Lenders to NOT Charge Late Fees Due to Shutdown - 10/14/13 03:16 AM
FHA Urges Lenders to NOT Charge Late Fees Due to Shutdown
In addition to their contingency plan, HUD is making strides in order to ensure that borrowers continue to be well insulated during the shutdown. Strictly speaking, borrowers who are going through financial hardships, as a result of the shutdown, and are unable to keep up with their financial obligations for the time being.
For Carol Galante, the commissioner and assistant secretary for Housing at FHA, it's crucial that all lenders and mortgagees help out borrowers during this time.
In a letter for all reverse mortgage professionals, Galante urges mortgagees extend an informal forbearance and … (0 comments)

senior retirement planning: Can Retirement Kill You? - 10/14/13 12:27 AM
Can Retirement Kill You?
This isn't the first time I've read an article that said more or less the same thing. 
An article, published by BBC, "Can Retirement Kill You?" tackles the question with unflinching honesty, using Dr. Harry Prosen, who stepped down as the Head of Psychiatry at the Medical College of Wisconsin in 2003 at the age of 71, only to continue to work afterwards on various jobs in order to keep busy. 
Lately, Prosen doesn't seem as out of the norm as he would've been 20 years ago.
For many seniors, "retirement" no longer means what it used to--leaving your job … (2 comments)

senior retirement planning: "Reverse Mortgage Changes Make Retirement Harder..." - 10/10/13 01:28 AM
Mike Anderson in his column published in NerdWallet states: 
"Reverse Mortgage Changes Make Retirement Harder..."
I resent the implication because Anderson is saying that retirement is getting harder for seniors BECAUSE the reverse mortgage program has changed, implying that A equals B.
This is not true. 
To be honest, I've done posts before about the current state of retirement in America, and it paints a grim picture even before these changes were to be implemented. The reverse mortgage is an OPTION for retirees planning their retirement or looking to secure a "rainy day fund" on top of their current income but it is not the be all and end all of … (2 comments)

senior retirement planning: Non-Borrowing Spouses Benefit from HECM Loan Counseling As Well - 10/08/13 02:31 AM
Non-Borrowing Spouses Benefit from HECM Loan Counseling As Well
HECM Loan counseling is an essential part of any reverse mortgage transaction.
Those who tell any client otherwise are lying.
Reverse mortgage counseling is a safeguard against unethical practices, ensuring that consumers who apply for a reverse mortgage are fully aware of the in's and out's of the program. In addition, counseling makes sure that consumers are aware of their financial obligations, such as homeowner's insurance and property taxes, before they sign on the dotted line.
Personally, I go over every document with the client face-to-face as well, even if they are have been … (0 comments)

senior retirement planning: Do You Retire with a Forward Mortgage or Get a Reverse Mortgage? - 10/04/13 12:47 AM
Do You Retire with a Forward Mortgage or Get a Reverse Mortgage?
Despite the recent changes, the reverse mortgage program will continue to be a beneficial program for the growing baby boomer generation as well as future borrowers. In fact, the new, consolidated reverse mortgage will bring the program back to basics, providing a secure retirement planning tool for retirees who want to age in place with an extra boost of cash flow for the proverbial "rainy day."
Financial Planner, Michael Kitces, is in firm agreement: 
“…while reverse mortgages have typically been viewed primarily as a ‘loan of last resort for those who … (2 comments)

senior retirement planning: Will FHA and HUD Be Affected By Government Shutdown? - 10/01/13 03:12 AM
Will FHA and HUD Be Affected By Government Shutdown?
The government shutdown is in effect for the first time in 17 years but, for the time being, reverse mortgage loan, insured HUD and FHA, will largely remain unaffected.
The shutdown came as a rude awakening for many government workers, and tourists who hoped to visit Yosemite National Park during its birthday. The Department of Housing and Urban Development, however, was already prepared for the worst when they released a contingency plan yesterday, September 30, the same day the changes to the reverse mortgage program changes were implemented.
According to an article published … (2 comments)

senior retirement planning: Reverse Mortgages Aren't Just for the Financially Desperate - 08/21/13 12:52 AM
Reverse Mortgages Aren't Just for the Financially Desperate
"Aren't reverse mortgages just for people in trouble financially?"
It's a question I hear all the time and it's one of the biggest misconceptions about reverse mortgages.
Can homeowners 62 years of age and older, who live in their primary residence and have enough equity in their home, who are financially desperate apply for a reverse mortgage? Yes.
Is this the only to apply for a reverse mortgage? No, not in the slightest.
Depends on what you want to use your reverse mortgage for.
For example, if you live on a fixed income, and … (6 comments)

senior retirement planning: Can Creative Retirement Planning Save Older Americans...? - 08/02/13 01:00 AM
Can Creative Retirement Planning Save Older Americans...?
It's the question everyone keeps asking themselves without really find a clear answer for it. In truth, it's been known that retiring in the current financial climate would be a hassle but after working 30+ years, older Americans expect a return for their investment and it's not coming.
According to an article published by Reverse Mortgage Daily asking: 'is now the worst time to retire?', Bankrate reports that the amount needed to maintain an investment portfolio is rising while returns on those same investment portfolios remain the same.
Bankrate reports that a $1 million dollar … (0 comments)