Retirement

Reverse Mortgages, On the Up and Up?

Austin

Many who hear the term “Reverse Mortgage” begin to immediately list off reason after reason why they are a bad idea. In a video by Professor Chris Mayer, many of the reasons that one might scoff at reverse mortgages are put at ease. Mayer’s experience in the area comes from being a professor of real estate at Columbia Business School. He is not the only one to claim the relevance of reverse mortgages. A task force at a Boston College have stated the positive sides of reverse mortgages, expressing an increasing comfort with the loan. As a extra sign of legitimacy, the Financial Industry Regularity Authority, has removed their warnings against reverse mortgages as a “last resort.”

Many believe that reverse mortgage are too risky for seniors to attempt, when there are other potential risks to their well being. Others find it that it could be taking advantage of the elderly and could cause financial burdens that could otherwise be avoided. Since the market crash in 2008, many steps have been taken to avoid the loss of money from reverse mortgages. Certain companies now require third party consultation before allowing potential reverse mortgagers to take to partake in this loan. Overall, the process of receiving a reverse mortgage has become a much more viable and encouraged option to those are taking the proper precautions. Bloomberg discusses Mayer’s ideas in this recent article.

You can find the best agent for you and your family at ldsagents.com.

The Future of Reverse Mortgages, and Why You Might Act Now

Austin

Reverse mortgages are going to be a less appealing way to contribute to retirement, due to recent changes by the Trump Administration.  If you have been considering a reverse mortgage, the time to act may be now. Richard Eisenberg discusses upcoming changes in this Forbes article.

Starting October 2nd, the following changes will be placed into affect.

Changes Coming to Reverse Mortgages:

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Should You Downsize in Retirement?

Julia

Make sure downsizing is right for you before you take the leap.

Let’s face it: the word downsizing often conjures up images of loss or failure. But what if the definition of downsizing in retirement really means a step up: freedom from hassles and overhead with the flexibility to do and be more of what you want in this next stage of your life?

Here are five things to consider before you put up the “for sale” sign: Read more →

Your Brain on Retirement

Julia

Retiring at 55 and spending the rest of your life relaxing on the front porch may sound appealing, but if you want your brain to keep working, it’s probably not a good idea. Mounting evidence shows that staying in the workforce into old age is good not only for our bank accounts, but also for our health and mental acuity. With LDS people living 8-11 years longer than the average person there is more to consider when planning your retirement.

As medical advances extend the length of the human lifespan – and the number of healthy, active years – scientists, economists and policymakers are delving into the question of what the optimial time to stop working is.

One message is becoming clear: don’t stop too soon.

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To Age Well, Change How You Feel About Aging

Julia

Aging well framed

Scientists are discovering something very peculiar about aging: How we feel about getting old matters. A lot.

In test after test, researchers are finding that if we think about getting older in terms of decline or disability, our health likely will suffer. If, on the other hand, we see aging in terms of opportunity and growth, our bodies respond in kind. Being grateful for our blessings, living the Word of Wisdom and having a positive attitude will keep us aging in a healthier way.

Research holds out the possibility for much healthier aging. But it also points to a very big obstacle: Negative stereotypes about aging are pervasive in America. Even many older adults embrace the idea that getting old is a bad thing-which means they’re doing potentially serious harm to their health without realizing it.

Psychologists and neuroscientists are identifying strategies that individuals can use to improve their mind-sets about aging, with benefits for their health and well-being.

Here are four ways people can better protect themselves from the potentially harmful effects of stereotypes about aging. Read more →

Buy or Rent in Retirement?

Julia

retired-couple_2748906k

Is it better to rent or own your home in retirement? It depends on your goals and financial situation.

Weigh the pros and cons of each housing option as you head into retirement.

“There is no one correct answer,” says Doug Heddings, founder of Heddings Property Group. “Each individual retiree must evaluate their financial portfolio to determine the cash that they will need to live on a monthly basis,” he says. Most retirees grew up with the idea that owning a home is always the best choice. The U.S. Census reports that 81 percent of Americans age 65 and older are homeowners. But that attitude may be changing. Experts agree it’s unwise for retirees to carry over large debts into their retirement years. In 2009, half of retirees carried mortgage debt, a figure that doubled from 2007 when only one in four had mortgage debt. And a recent study by the Joint Center for Housing Studies of Harvard University projects more than 2 million Baby Boomers now entering retirement will opt to rent.
So how do you decide?

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Seniors Struggling With Student Debt

Julia

How old will you be when you finally pay off your student debts?

Rosemary Anderson, from Watsonville, California, took out two student loans in her thirties when she earned her bachelor’s degree, and her master’s, totalling $64,000. She has worked at least one job most of her life, in addition to raising her two children.

But after health complications from lupus, and expenses from a divorce, Anderson, 57, fell behind on her payments eight years ago. With compound interest, the loans have ballooned to $126,000. With payments of $526 a month, she will be 81, she estimates, when she pays it down.

A growing percentage of aging Americans struggle to pay back their student debt. Tens of thousands of them even see their Social Security benefits garnished when they cannot do so. Read more →