As you get older, you may be considering giving a friend or relative your power of attorney so that someone will be legally empowered to handle your affairs in the case of your becoming unable to do so. Getting a power of attorney (or POA) may sound simple enough, but the process and the reasons…Details
Medicare is confusing because there are so many plans and so many choices to make, but the time when you have to choose is getting close. This year’s Medicare Open Enrollment period runs from October 15 through December 7, so millions of seniors will be taking a hard look at their plans and choosing to…Details
Your parents have always been thrifty. They helped you through college and were very careful about saving for retirement, but lately you notice that they aren’t going out very often, they are very careful when they shop, they often complain about the high cost of fuel or their utility bills. Your parents are not alone. Even some of the best laid plans can come up short. With medical costs rising in the double digits, exponential rising fuel costs and lower returns on investments, their nest egg might be coming up short.
Our parents have traditionally relied on a three component retirement plan: Social Security, pension and savings. Your parent’s average Social Security check is $1,002. You’ve read it in the news, you’ve seen it on sixty minutes, pension plans are under funded and benefits are being cut. That leaves your parents with their nest egg to retire on. It may be enough now. They are getting by with a few hundred dollars here and there from you and your siblings but what about as they get older? Are they pinching penny’s and still do not have quality of life? Money for travel? Extras? What if they need in home care? A couple of hundred dollars might pay for someone to come in for a three or four days. Then what?
A reverse mortgage may be the answer. If you haven’t heard of them, your parents have. They are being inundated with advertisements in the mail for them every week. These loans are increasing in volume every month. So why doesn’t anyone know about them? They haven’t hit the mainstream yet, but they will. Reverse mortgages are a special type of loan strictly for senior citizens. In the past they have had a bad reputation because in the early years of introduction there were predatory lending practices that occurred and many senior signed over a portion of the equity in their homes, “equity sharing programs”. Well thanks to the federal government reverse mortgages have been cleaned up. They are federally insured and heavily federally regulated. Reverse mortgages have turned into an empowering financial tool for seniors that can make the difference in whether or not a senior has to work part-time at Wal-Mart to make ends meet or live comfortably in their retirement years.
Here’s how they work. To attain a reverse mortgage you must be 62 years old or older. They are very similar to an equity loan except that there are NO PAYMENTS for the life of the loan. The senior qualifies of a percentage of their equity to be turned into cash. The amounts of their proceeds are based upon the senior’s age, the value of their home and their homes location. If there is a first mortgage on the home this must be paid out of the proceeds. Paying off the mortgage in itself is often times a substantial increase of cash flow each month for a senior. Can you imagine if you didn’t ever have to make another house payment?
These loans are exceptionally flexible and safe. Before a senior can even submit a loan application they must attend an independent counseling session paid for by the federal government to insure that they understand the loan completely. This counseling session is independent from the lender and the originator and has no cost to the senior. And did I mention that these loans have NO OUT OF POCKET COSTS and NO PAYMENTS FOR THE LIFE OF THE LOAN! Reverse mortgages also have no credit requirements. The senior can take the proceeds in a number of ways. They can set up a line of credit that they can draw on as needed. The credit line grows at the same rate as the loan if unused and does not count as loan principle until used. They can receive a lump sum of cash up front at closing; they can set up a guaranteed monthly tenure payment for life, or a combination of these.
One of our clients, a very active woman of eighty did part time catering to make ends meet. After she refinanced with a reverse mortgage, she paid off her first mortgage, she set up a credit line of $25,000.00 that she can draw from at anytime; she took $25,000.00 at closing and set up a guaranteed tenure payment of $1000.00 per month for the rest of her life. Formally she worked part time and worried. Presently, she travels, gets massages and has peace of mind.
Reverse mortgages have changed and make financial sense. If your parents need money for quality of life either for things they want or things they need. Reverse mortgages may be the answer. Call me and get the facts about how a reverse mortgage can help the senior in your life.Details
The National Council on Aging created an online tool that helps seniors tap into billions of dollars in Benefits to help pay for healthcare, food and utilities. The Benefits Check Up Tool helps people over 60 years old sift through over 2000 federal, state and private benefit programs they’re eligible for based on their financial…Details
A recent USA Today article states that there is an increase in seniors living over the age of 90. According to author Haya El Nasser “The number of people living to age 90 and beyond has tripled in the past three decades to almost 2 million and is likely to quadruple by 2050”. Seniors who…Details
Image via Wikipedia Summer is a great time to increase your fitness level for a better quality of life. Fitness should involve more than just improving your appearance; it is really about maintaining your health. Please remember to talk to your doctor before starting any exercise Regimen. Aerobic exercise – loosely defined as any physical…Details
Image via Wikipedia Making the decision to hire a home care service to provide care for your loved one is an important decision and can, at the same time, be very difficult. If an illness or recovery from surgery requires nursing care or physical therapy, a physician may order skilled home care services that provide…Details
When I talk to clients they often share with me that they feel overwhelmed with the accumulation of their “stuff”. If you have been living in your home for 10, 20 or even 60 years, you might have quite a bit of “stuff” accumulated.Details
Image by Getty Images via @daylife FreeSeniorCitiizensSolutions Mission Statement: To be a free resource for Senior Citizens regarding Medicare, Medicaid, Medigap policies, Discounts for Senior Citizens and other essential information for independent living. This is an interesting site. It has information on Social Security Benefits, Free Dentures, Dental Care, Jokes, Free Discounts, Sore Feet,…Details
Seniors Can Benefit from Pet Adoption Pet adoption offers health benefits, companionship – – and responsibillities
Image via Wikipedia This is a great article on Senior Pet Adoption. An excerpt of the article is below along with the link. Consider using www.petfinder.com. It is a search site with pets that need homes all over the country. I hear it said that if everyone who apopted an animal, adopted from an animal shelter,…Details