A majority of those turning 65 are homeowners.  I have been puzzled just how many homeowners 65 or better own there home and are still under utilizing the usable assets that are within their reach.  The most recent survey I have seen showed estimates that as many as 72% of senior homeowners 65 and older have little or no mortgage.

If you currently have no mortgage or a small mortgage; congratulations!  Many seniors who have no mortgage continue to spend down their reserves in order to maintain their current standard of living.  Many are depleting assets that cannot be replaced. The reality is there are many ways to preserve their current cash (liquid) assets without giving up their standard of living.  In addition there are new ways to secure even more protection of your assets and still maintain your standard of living. 

Many homeowners who have little or no mortgage are utilizing their current built up equity in your home.  I can hear you now saying, “I don’t want to use my home equity, unless it is a last resort.”  This school is thought is old school thinking.  The majority of today’s seniors are savvy and well educated and understand the importance when it comes to protecting their current asset base. 

Here is a list of the major concerns that could destroy and deplete your current asset base:
 
1. Life expectances continue to rise (Will you outlive your current assets?)
2.  Minimal defined pension plan existence (Do you have one now or has it been reduced or eliminated?)
3.  Rising Medical Costs (Drug costs, procedures and costs will continue to rise.)
4. Uncertainty surround government funding of Social Security (Will the deficit undermine the current trust system?)
5.  Entitlement programs such as Medicare and Medicaid (What steps will be taken to increase your share of the cost imposed by a growing number of participants?)
6.  What happens if you have to go to assisted living?
7.  What about protecting the assets you have utilizing available financial and tax planning to reduce and maintain your estate?

Today’s new 65 is bolder and informed when it comes to finances.  Most understand the importance of financial asset protection. 

Your financial advisor can assist you making sure you are provided a hedge against future financial concerns.  But, you must plan now to make sure you are protected.

The real concern for you, if you are 62 or better,  is to evaluate how long will your current financial portfolio will maintain itself before your assets deplete and you have no funds?  What if there is a double down “Great Recession?”  What is the European markets implode? What about oil and food prices? 

Do you have alternatives to today’s economic climate?  Opening up your mind to new solutions and a new approach to your long term financial well being may be worth exploring.

For more information as to how you can better utilize your current asset (equity) pool, please give me a call today.

877-266-9500

1. Lifestyle…its pretty obvious that our lifestyle today is different today than say 20 or even 10 years ago.  No doubt, we are on the go more and busier than ever.

2.  Technology…of course the most obvious thing to come to mind is the computer.  But, that in itself is not it a reason.  What about email, automobiles, cell phones, overnight express, faxes, television, CD’s, DVD’s, MP3’s, POD’s, YouTube and now Blogs (what’s a blog?) Oh boy, all this technology is taking a lot of our time.

3.  Medical…yes, medical treatment has gotten so much better and for that, we can be thankful, but stop and think about our time built around the medical visits!  Can you remember when the doctor used to come to us, and dispensed the medicine in paper pouches? 

I guess I could go on and on.  As the 2011 comes to an end, I am not considering making a New Years resolutions.   I’ve  always thought I’d either forget them or heck, just never live up to them.  But, I am really going to try to make better use of my time in 2012. Family time better spent with wife and children and better time with the grandkids, and maybe even work in a little time for myself.  Of course, giving back some time to the community and hopefully bestow some of this mature mind onto the minds of our younger generations. I’d like to awake each day with a purpose and by the end of day hopefully reflect that I really accomplished something that day.  For sure, time waits for no man or woman.  I hope your time in 2012 is Happy and Healthy.

Take a look at the video. \”The Fed Twist\”

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How much is enough?

The problem: My spouse and I are in our 60s. How can we know whether we’ll have enough income to comfortably retire soon without running out of money?

How it works: This decision is crucial, and making a poor choice now could have devastating effects later. Spend some time number-crunching and discussing your future before you make any decisions. And don’t forget that life expectancy is increasing: You shouldn’t rule out the possibility of living into your 90s.

The rules: Make sure your investment portfolio is well diversified in order to adequately fund your retirement income needs. It should be a mix of stocks, fixed-income investments, real estate and CDs. Although investments always carry some risk, and performance can never be assured, a diversified portfolio historically has outpaced inflation over time.

The strategy: Talk seriously about what you want to do during retirement. Is travel a priority? Will you spend your time closer to home, pursuing hobbies or volunteer work? Do you plan to relocate? When? Use the conclusions you reach to develop a realistic annual budget that covers your cost of living, including recreation expenses and anticipated medical costs.

Next, list your sources of annual retirement income. Include pensions, annuities, any income you anticipate from working part time, plus any other income (except investment income). To this figure, add the estimated annual Social Security payment listed on your most recent statements.

Finally, list all your assets: Bank accounts, IRAs, 401(k)s, 403(b)s and other investments. Looking at your assets in total will help you determine how to diversify your portfolio and maximize your returns. Come up with a conservative estimate for what your investments will produce annually and add it to your total yearly income. The figure should give you a good idea whether you will have surplus income or a shortfall.

The results: If you foresee a large shortfall, consider working a few extra years. Even with those extra funds, however, you may need to make annual withdrawals from your assets to supplement your income. Plan to withdraw no more than 4 percent to 5 percent each year, which should allow for growth while minimizing the possibility you’ll run out of money.

When planning for retirement, consideration should be given how you can account for the swings in financial markets. How will a sluggish economy, natural disasters, terrorist attacks, corporate scandals and other unforeseen events affect the stock market and your ability to fund retirement?

In retirement or about to enter retirement,  you need to plan for how much money you will need for every year you are alive – but just as you don’t know how long you will live, you can not know what rate of return you will receive from your various investments.  

Stock market declines significantly have affected  the retirement plans of most individuals. In retirement, you need to plan for how much money you will need for every year you are alive – but just as you don’t know how long you will live, you can not know what rate of return you will receive from your various investments.  Market fluctuations make it very difficult, yet there are financial vehicles now in place that can offer you some choices.

Many retirees hope to gain income from their savings or keep pace with inflation by investing in financial vehicles that offer high rate of returns. The problem is that – as a general rule – investments that offer high rates of return are often the riskiest.  And in retirement, rule #1 is reduce your risk!

Other retirees hoard their savings in accounts that offer no or very small dividends – meaning their principal is safe, but the money may be loosing value by not keeping pace with inflation. And the savings are certainly not creating income. Again, there are answers to those who are risk adverse.

It is difficult to find just the right way to allocate your assets. But, it is critical to understand that you should try to plan on having enough guaranteed income to cover your basic needs should something happen to make the financial markets collapse.

We are not financial planners.  Consult with your financial planner or tax consultant before making any investments.

(source SRTKN research)

A new campaign launched by the organization spotlights how older Americans are one bad break, one accident, or one layoff away from economic disaster.

“We are already receiving real stories of seniors who are struggling,” said Sandra Nathan, senior vice president for economic security at NCOA. “It’s clear that vulnerable older adults are in desperate need of help and want to be heard.”

To spotlight their struggles—and call for change—the NCOA is rolling out One Away, a national advocacy campaign that uses video to allow older adults to tell their own stories, in their own words.

As part of the campaign, a Harris Interactive poll found that almost two-thirds (63%) of adults aged 18+ said they or an older adult they know is struggling to make ends meet in today’s economy.  A majority (62%) also know one out of three older adults that relies on Social Security for over 90% of their income.  In addition, almost three-quarters (72%) either underestimated or did not know that nearly 6 million seniors are at risk of going hungry every day.

“The struggles seniors are facing are all too often overlooked or dismissed,” said James Firman, president and CEO of NCOA. “This campaign is about elevating their voices, and we need Congress to catch up to the realities of their constituents and develop concrete solutions to make life better for our seniors.”

Here is your chance to express yourself with One Away national advocacy campaign.  The more often we speak up as older Americans, the better chance we have of making our voices heard.

SOCIAL SECURITY

“No Check – Go Direct”

George Takei and Patty Duke Promote Direct Deposit

In a new video public service announcement, George Takei and Patty Duke are helping Social Security get the word out that the best way to get your benefit payment is to “Go Direct.”  To apply for direct deposit or the Direct Express^Ò Debit MasterCard^Ò card visit www.GoDirect.org.

[Disclaimer]

“Getting your Social Security or Supplemental Security Income payment by direct deposit or Direct Express is safer and more reliable,” said Michael J. Astrue, Commissioner of Social Security.  “You don’t have to worry about your check being lost or stolen and your money is available immediately on your payment date.  There is no need to wait for the mail to arrive.  As George says, you’ll get your payment at warp speed.”

The U.S. Department of the Treasury announced a new rule that will extend the safety and convenience of electronic payments to millions of Americans and phase out paper checks for federal benefit and non-tax payments by March 1, 2013.  Anyone applying for benefits on or after May 1, 2011, will receive their payments electronically, while those currently receiving paper checks will need to switch to direct deposit by March 1, 2013.

Electronic payments also will provide significant savings to American taxpayers who will no longer incur the $120 million a year price tag associated with paper checks and save $1 billion over the next ten years.  Eliminating paper checks also will provide positive benefits to the environment, saving 12 million pounds of paper in the first five years alone.

To learn more about direct deposit or the Direct Express^Ò Debit MasterCard^Ò card or to apply, visit www.GoDirect.org.

However, suppose you live in your home and you think you own it, because you have been making the payment for over 3 years, such as  the case of our 84 year old client, Mr.viagra.  You see, Mr. C had a son who died 3 years earlier.  Mr. C. had been paying his share of the mortgage even before his son died.  But, after Mr.C’s son died, he continued to make 100% of the mortgage.  Mr. C thought he owned the house, until he applied for a reverse mortgage.  The title search showed that Mr. C’s son still owned the house.

Mr. C was also survived by his deceased wife.  However, he had no proof that his wife had died and therefore, may have claim to their deceased son’s assets (home).  Also, Mr. C did not have  proof of his son’s death.  Challenging, as it was, we are able to assist Mr. C by getting his son’s death certificate and his wife’s death certificate, who had died many years earlier, five states away.   Having gotten the proof needed,  the title company proceeded in probate court to have the title deeded  into  the name of Mr. C.  Now Mr. C was considered the legal owner of the home and now the process to get Mr. C a reverse mortgage could proceed.

Many things are possible if you work with a professional who has the patience and ability to work with you.  If you have any questions or concerns about your situation, give us a call, 1-877-266-9500.

Debt does not have a timeline.  It seems like many folks regroup at the beginning of the new year, but in reality, managing debt is a year round job. 

Gas prices are up, food prices steadily rising, utilities, and health care, all seem to have no end in sight and are adding to your cost of living.  What do you do?  

I put together a few ideas for you to help.

First, consider building up an emergency fund. 

Try to put away three to six months’ worth of expenses in an account that you can access for emergencies only.  This little stash of cash should help you from using high interest rate credit cards, if for some reason you run short of cash for medicine or home repairs.

Consider paying off your mortgage and convert as much as possible into a liquid asset.  Especially if your investments are making you less than the percentage you are currently receiving.   If want to pay off you mortgage and increase your cash flow to pay off those credit card debt or car payments, consideration should be given to looking into a reverse mortgage.  With a reverse mortgage you can pay off the mortgage and make no monthly payment. 

This could increase your cash flow tremendously.

If you use credit cards, look for ones that offer no annual fees, or low late fees.

Some other pointers.  Charge purchases to credit cards only if you can pay them off each month.  If you’re already in lots of debt, try stop using them.    You may want to consider calling your card company and ask for a lower rate or even a low payoff. You never know unless you call.

Suppose you are seeing those credit card balances increasing every month.  Yes, some are using credit cards to stay afloat to meet ever rising expenses.  If this is happening to you, consider evaluating all your available assets.  One asset often considered the last resort is the equity in your home. 

When, in reality it should be your first thought.  Why?  Because you can utilize your homes asset and still maintain the built up reserves you have in your 401K, stocks and other assets and best of all, you still can live in and own your house.  If you want to know more, you should look into how to use a reverse mortgage to help you with managing your debt and relieving your final stress. 

If you are still working, avoid payday loans.  The annual rates for these loans can be close to 400%.

Lastly, you can consult a credit counseling agency.    Counselors will try to negotiate lower rates and flexible payments with your creditors.  Avoid credit counseling agencies that charge high fees or offer you advice without reviewing your situation closely.

 For more tips on finding a reputable counselor, give us a call, we can give you a list of local credit advisors who little to nothing for their services.

Give us a call (800-282-5085) and we will be happy to discuss alternatives with you and provide useful resources to help you with your decision of whether to stay in your home or rent.

Conversations with my clients often lead to the question of whether they should sell their home and rent, or just stay where they live now? 

The answer may surprise you. 

The majority of my senior clients tell me they would rather stay in their home rather than rent.

The reasons are twofold:

1. They are already comfortable in their current homes and dread the thought of leaving the place where they have raised their families.

2. In most cases, my senior clients cannot find a place to rent that is less than or equal to what they are paying now and have the comforts of their current home.

There are over 70 million Americans boomers who were born between  1946-1964. The oldest of the boomers will be turning 65 this year. Nearly one-third of boomers have very little or no retirement savings. The largest asset that most boomers have is the money they have in the equity of their house, but you do have choices.

Perhaps a reverse mortgage would be the answer for you to stay in your home.  However, we know your choices are very personal.  If you would like, we would be happy to visit with you one on one see and assist you in appraising the right choices for you and your family.

Give us a call (800-282-5085) and we will be happy to discuss alternatives with you and provide useful resources to help you with your decision of whether to stay in your home or rent.