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Follow Your Dreams with a Reverse Mortgage

Follow Your Dreams with a Reverse Mortgage

Follow Your Dreams with a Reverse Mortgage

Perhaps you’ve been stuck behind a desk you hate at a job you loathe for too long. You’ve stayed because the benefits are good and a pension was possible. Now, however, it is time to retire and you are wondering if the business you’ve always dreamed of starting is a real possibility.  

No matter what type of business you have in mind, it’s going to take funds to start.  And, unless you have been putting money away in the bank for the purpose of starting a business, chances are you don’t have what it takes.  Combine that with the fact that applying and being approved for a small business loan is a rather difficult process and you might think that your dreams are a lost cause. However, you shouldn’t give up hope until you have considered a reverse mortgage.  

Depending on the amount of equity you have in your home a reverse mortgage can provide you with the up-front funds to fuel your business dreams.  The average reverse mortgage loan is valued between $150,000-$250,000, which is typically enough to start a small business.

Unlike a small business loan, you are not required to begin paying back a reverse mortgage immediately.  Most homeowners choose to pay off their reverse mortgage when they sell their home. However, if you plan on staying in your home for the duration of your life (or at least for an extended period of time), you can make installment payments on the balance of your reverse mortgage.  

When you choose to use a reverse mortgage to invest in your small business dreams, you are creating a future income stream that can be used to travel, make investments, or simply provide for your family.  

If you are interested in using a reverse mortgage to start a small business during retirement, we encourage you to create a solid business plan before talking to your financial advisor.  They will be able to assist you in making your vision a reality and also provide you with valuable information regarding reverse mortgages.

3 Facts about Retirement You Probably Didn’t Know

3 Facts about Retirement You Probably Didn’t Know

3 Facts about Retirement You Probably Didn’t Know

Like most people, you have probably been saving and planning for your retirement for years. However, do you still feel like you have questions about your retirement and are a bit uncertain about what the future holds for you?  Well, you aren’t alone.  In fact, many people get to retirement and are surprised by the amount of advice and information they never received.  So, if you are planning on retiring from your career at any point in the near (or not so near) future, you might want to take note of these facts.

Many People Retire Earlier Than Planned

As a retiree, you can begin drawing full Social Security at the age of 66 or 67.  Therefore, many people plan to work until at least that age or beyond in order to be able to maintain their preferred lifestyle.  Unfortunately, a large percentage of people who plan to retire at that age find that they may be forced to retire earlier than they anticipated.  According to an article in Time, 51% of Americans retire between the ages of 61-64, which is before they can draw Social Security.  You should consider the option of an early retirement and what you need to do to make it possible.

Medicare Does Not Cover the Cost of Assisted Living

A big part of planning for retirement is planning for your healthcare costs. But, did you know that Medicare does not cover the cost of assisted living? So, if you plan on relying solely on Medicare for your healthcare costs, you will either have to live in a nursing home or find a family member to help you in your home.

You Might Outlive Your Savings

If you started saving for retirement 40 years ago, chances are you don’t have enough saved.  That’s because the average life expectancy 40 years ago was much different than it is now. Today, the average life expectancy is over 80 years old and medical advances keep extending this number.  If you haven’t already, now is a good time to adjust your savings to reflect these statistics.

If you are worried about retirement, it’s never too late to talk to someone about your options! Your financial advisor has access to many different solutions like the federal Reverse Mortgage that is designed to help people just like you.

Building a Budget for Retirement

Building a Budget for Retirement

Building a Budget for Retirement
We all have dreams of retirement that include plans of what we will do with our free time and ideas for how we will live out our bucket list. But, as we get closer and closer to retirement the reality of the price tag on those dreams begins to feel daunting.

Don’t worry though.  In retirement, just like everyday life, there is nothing a good budget can’t fix. However, your budget for retirement might look slightly different than your budget right now. Here’s how you can figure it out.

Everyday Expenses

In retirement, your everyday expenses may look slightly different than your everyday expenses right now.  For example, you won’t be commuting to and from work every day using gas or eating out every day for lunch. So, when you are thinking about the money you need to pay your bills and just “live,” be sure to take these factors into consideration.

Lifestyle Expenses

Lifestyle expenses are where things get “real” in retirement.  There are many more opportunities for entertainment and adventures since you have free time. It is important to create an idea of the lifestyle you want to live upfront, so you can ensure you have enough funds to make it happen.  The crucial point is to be honest with yourself. If you know you will want to go to the movies once per week, or take an annual trip to the beach you must budget for that. Otherwise, it likely will not happen.

Medical Expenses

Medical expenses are very different in retirement than they are while you are working. For one, health insurance coverage changes, meaning you might be paying more than you are used to. When creating your retirement budget, be sure to go over your health insurance coverages to get a good idea of how much money you will need for your medications and care.

Long-term Goals

Long-term goals are where things get exciting.  If you have always dreamed of taking a European vacation, African safari, or going on a 3-month cruise during retirement now is the time to make it happen! Set aside enough money in your budget to live out your bucket list without having to cut into the money you have for your other necessary expenses.

Creating a retirement budget is a balancing act that requires a lot of work, but the results are well worth it. If you are looking for a solution to your cash needs in retirement, you should really consider a Reverse Mortgage as an important part of your retirement budget. A Reverse Mortgage is a straightforward, easy solution to help you through retirement. Talk to you financial advisor today!

3 Reasons Retirees Choose Reverse Mortgages

3 Reasons Retirees Choose Reverse Mortgages

3 Reasons Retirees Choose Reverse Mortgages

With the baby boomer generation aging out of the workforce, there is one thing at the top of everyone’s mind—retirement.  Now more than ever, retirement is a cause for concern as fewer companies are offering pensions and the cost of healthcare is rising.  That being said, many retirees are finding comfort in the flexibility and resources Reverse Mortgages offer.  If you are a baby boomer considering your retirement options, here are a few reasons you may want to consider a Reverse Mortgage.

Reverse Mortgages allow you to delay Social Security.

Many people choose to retire or need to retire before they reach the full retirement age.  This means they are unable to draw Social Security.  For many retirees, going without that extra income is simply not an option.  As a result, many retirees opt for a Reverse Mortgage to cover their extra expenses. Once their Social Security is fully matured, they can relinquish the Reverse Mortgage and begin drawing benefits.  For these people, Reverse Mortgages are a temporary fix until they reach a long-term solution.

Reverse Mortgages allow extra income for medical expenses.

When you take out a Reverse Mortgage, you can choose to receive a specific amount each month.  You can then use that loan amount to aid you in any of your day-to-day expenses. Many retirees choose to use their Reverse Mortgage income as a health insurance and health cost stipend so they know they will be able to cover any expenses that may arise.

Reverse Mortgages allow you to age in place.

When it comes to retirement, most retirees want to know they will be able to live in their home for the duration of their life without having to turn over their assets and move to a senior care facility.  Reverse Mortgages help people live with the peace of mind that this is possible.  With the income from a Reverse Mortgage, retirees can plan to cover expenses such as in-home care or other living expenses they might not otherwise be able to afford.

 

Are you facing the exciting opportunity of retirement? If so, you might want to consider talking to an expert about a Reverse Mortgage.  Call Reverse Mortgage Answers now at 1-800-420-5515.   It might be just the solution you need.

How Much Do I Really Need for Retirement?

How Much Do I Really Need for Retirement?

How Much Do I Really Need for Retirement

One of the most common questions individuals ask as they are preparing for retirement is “How much money do I REALLY need?”  They want to know they will be safe and secure, but also want to retire where they are in the moment.  If you are nearing retirement, chances are you are asking that question too.  The answer depends on how you want to live your retirement. If you aren’t sure, here are a few points for you to think about:

How much money do you make?

If you are making a certain amount of money now, you shouldn’t expect to live a life that requires 10x that amount each year during retirement.  Generally speaking, your retirement savings should total at least 10x your current income.  By the time you retire (depending on your age) many of the larger bills or debts you have now will be paid off, and you will be able to use the supplemental income you have saved for activities and other lifestyle choices.

What age do you want to retire?

How much money you need in retirement is very dependent upon the age at which you retire.  If you plan to retire at a young age (before 65), you will need to prepare for expenses such as private health insurance instead of Medicare.  Furthermore, if you retire at a younger age, you will have more years of expenses you need to account for, including the years that you will not collect social security.

What lifestyle do you want to live?

To be able to take annual trips or cross off items on your bucket list, you will need to have the savings to do so.  It takes many funds to fly across the world or go on a summer vacation through Europe.  Many experts recommend starting with an ideal nest egg of $1 million and then building from there based on the lifestyle you want to live. Unfortunately, for today’s baby boomers it is not always easy to create this ideal nest egg savings due to increased costs of living expenses, unforeseen situations, i.e., losing a job or having to assist loved ones financially.

If you are uncertain of how you will pay for your living expenses during retirement and don’t think you have enough saved, a Reverse Mortgage can be an ideal solution to tap into the extra funds you need. Many financial experts can help you understand reverse mortgages and decide whether or not it is the right choice for you. Our Reverse Mortgage Team can help guide you into a more enjoyable and financially secure retirement. Give us a call at 1-800-420-5515 to learn more!

Stay in Your Home with a Reverse Mortgage

Stay in Your Home with a Reverse Mortgage

Stay in Your Home with a Reverse Mortgage

Are you considering selling your home and belongings in order to move to a retirement home?  This may not be something really want to do, but you feel like it’s your only choice. Well, guess what? It’s not! We have good news for you. You can stay in your home.

If you are over the age of 62 and have equity in your home, you might be the perfect candidate for a Reverse Mortgage.  A Reverse Mortgage works by giving you tax-free access to the equity that is in your home.  Best of all, you have no monthly payments.

Here are the things you will be able to do with a Reverse Mortgage:

Pay for your Healthcare Costs

For many people, rising healthcare costs is one of the biggest reasons they choose to sell their assets and move into a retirement facility.  However, with a Reverse Mortgage, you can pay for health care costs while staying in the comfort and security of your home.

Stay in your community

Let’s face it, people don’t like change.  They want to stay in their home where they are comfortable and friends and family are nearby.  No one wants to feel isolated and it is challenging moving to unfamiliar surroundings.  If this sounds like you, then you will be happy to hear that Reverse Mortgage can help! The Reverse Mortgage will enable you to maintain or even improve your current lifestyle.

Check off items on your bucket list

A Reverse Mortgage provides you with the income to stay in your home while also fulfilling your biggest dreams.  You can now travel, purchase the car you have always dreamed of and experience the retirement you deserves.

Call Reverse Mortgage Answers today and start the process of fulfilling your retirement dreams. With over 25 years of experience, we can help you attain your goals safely and easily.  Find out for yourself how the Reverse Mortgage can benefit you.

21% of Baby Boomers Lack Adequate Savings to Cover One Month of Basic Expenses

21% of Baby Boomers Lack Adequate Savings to Cover One Month of Basic Expenses

 Baby Boomers Lack Adequate Savings to Cover One Month of Basic Expenses

A recent poll reveals that all generations feel unprepared when it comes to retirement savings — with 21% of Baby Boomers indicating that they think they lack adequate savings to cover one month of basic expenses, according to AARP.

Co-commissioned with the Association of Young Americans, the “Three Generations Survey” asked Baby Boomers, Generation Xers, and Millennials, a variety of retirement and financial security-related questions.

The age groups were consistently unsettled about their financial security in retirement, with about 40% of Boomers worrying they would not be financially comfortable once they stopped working.

The survey also looked at Social Security. While 78% of all respondents felt that funds from the program were an important source of income in retirement, 90% of Baby Boomers saw Social Security as an integral part of their retirement financial security.

According to the Social Security Administration, nine out of ten retirees aged 65 and older receive Social Security benefits. With an average monthly payment of $1,413, about $61 billion will be given out to approximately 43.1 million retired Americans in 2018.

Fortunately, Social Security isn’t the only option.  The federally-insured Reverse Mortgage can give you financial security with flexibility in retirement.  Senior homeowners can supplement their retirement income while keeping their Social Security benefits in place!

To learn more, we invite you to give us a call at 1-800-420-5515 to learn how to maximize your income as a retiree.

A Recent Report Shows That the Aging Population Is Struggling to Maintain Their Homes. Discover Your Options Today!

A Recent Report Shows That the Aging Population Is Struggling to Maintain Their Homes. Discover Your Options Today!

Aging Population

The vast majority — 78% — of homes in the U.S. headed by someone age 75 or older are owned free-and-clear, a recent report reveals. This statistic was one of many compiled by the Administration for Community Living in their 2017 Profile of Older Americans.

Not surprisingly, the numbers show the aging population has grown sharply — and will continue to expand by leaps and bounds in the future.

“Over the past ten years, the population age 65 and over increased from 37.2 million in 2006 to 49.2 million in 2016 (a 33% increase) and is projected to almost double to 98 million in 2060,” the report states.

Furthermore, the profile found about 11.9 million households were headed by someone age 75 or over, with 76% of those households owned and 24% rented as of 2015. It also confirmed that some of the older homeowners had problems with maintaining their residence.

“Among the homes owned by people age 75 and over, 3.5% had moderate to severe problems with plumbing, heating, electric, wiring, and upkeep,” the report states.

However, what about the issues of older Americans who are under 75 years old? The scores would presumably be higher for those who do not own their homes yet and are experiencing moderate to severe issues with home maintenance.

That’s where a Reverse Mortgage can be an excellent solution.  One of the common uses of the Reverse Mortgage proceeds is making much-needed home repairs.

If you or a loved one you know is a senior homeowner who is struggling to pay off their mortgage balance or to keep up their home, the Reverse Mortgage may be the answer. With colder weather right around the corner,  now is the perfect time to acquire the funds needed to upgrade your home.

To learn more, we invite you to give us a call at 1-800-420-5515.

Building Your Nest Egg with the Reverse Mortgage Can Be a Great Option!

Building Your Nest Egg with the Reverse Mortgage Can Be a Great Option!

Building Your Nest Egg with the Reverse Mortgage Can Be a Great Option

Did you know that USA Today listed Reverse Mortgages among the best options for retirees to build their nest eggs?  In particular, they called out the benefits of the Reverse Mortgage ’s line-of-credit feature.

Longtime financial journalist, Robert Powell, positioned the product as a potential solution for long-term savings shortfalls.

“Having a Reverse Mortgage with a line of credit provides the homeowner with money they can tap into later in life,” Powell wrote. “What’s more, the line of credit grows at a rate higher than that of a conservative investment portfolio.”

The USA Today piece also noted an excellent benefit of the Reverse Mortgage: it’s the loan without a monthly payment. That is a significant advantage for retirees!

In general, the piece emphasized the importance of attacking retirement from multiple angles, and not using a single solution as a cure-all for an individual’s savings. Pointing to a recent report from Stephen Wendel, head of Behavioral Science at Morningstar, the USA Today piece urged Americans to look at all options to be financially secure in retirement.

RMA stands by Wendel’s statement because it is true. Everyone’s financial needs are different, which is why it is crucial that a retiree learn about all of the unique tools that are available, including the benefits of the Reverse Mortgage.

Building a nest egg in retirement may not seem easy, but you don’t have to do it alone. RMA wants to be your Reverse Mortgage resource.  We want to provide you with the facts and show you how this flexible product that can be customized to fit the individual needs of the borrower.

To learn more about the benefits of the program, give us a call today at 1-800-420-5515.

Don’t Wait Until It’s Too Late! Learn How You Can Age in Place Using the Reverse Mortgage.

Don’t Wait Until It’s Too Late! Learn How You Can Age in Place Using the Reverse Mortgage.

Don't Wait Until It's Too Late! Learn How You Can Age in Place Using the Reverse Mortgage

If you’ve ever considered “aging in place,”  you may want to strongly consider the structural upgrades that are essential for living with accessibility and safety.

Certified aging-in-place specialist, Pete Mendenhall, states  that “these upgrades are something retirees should start planning for sooner than later if staying in their current home is the plan.”

The key areas to look at when planning upgrades include where you sleep, how you enter your home, how you bathe, and how you feed yourself.

However, the list doesn’t end there. Mendenhall encourages seniors to consider, “how many floors do you have and where are your bedrooms? Do we need to think about a stair lift? Outside, do you go down or up? Even without ambulatory problems, someone can always have balance issues.”

Unfortunately, many clients do not make necessary home improvements until an unfortunate incident, i.e., a fall occurs. Helping seniors plan for home upgrades in advance is vital. However, Reverse Mortgage Specialist,  Christina Harmes, states that “too many seniors wait until they are forced to do something to make a change.”

All of the specialists agreed that making home improvements isn’t cheap by a long shot. “It always seems to be more than you have thought,” Mendenhall says.  Furthermore, pricing is hard to estimate considering all of the variables like the type of upgrade, demolition, rebuilding, parts, and labor.

A webinar sponsored by the National Reverse Mortgage Lenders Association estimated a bathroom upgrade at anywhere from $17,000 to $25,000 depending on prevailing local construction costs.

Fortunately, the Reverse Mortgage is an excellent solution to turn for help with necessary home improvements. With over 25 years of experience, our company has helped plenty of seniors use the funds from the Reverse Mortgage to make vital home improvements.

If you are considering aging in place, our company would be happy to help you determine if the Reverse Mortgage is right for you! We invite you to give us a call at 1-800-420-5515 to learn more about this life-changing program.

Location

Headquarters
614 Old Edmondson Ave., Suite 200
Catonsville, MD 21228-3360
Toll Free:
1-800-420-5515

Maryland Office:
410-788-7070

Eastern Shore Office:
410-600-0600

District of Columbia:
202-719-0625

Virginia:
703-879-2316

Licenses

NMLS # 179014
www.nmlsconsumeraccess.org

Maryland - Lender # 06-20057

District of Columbia - Mortgage Broker # MLB179014

Virginia - Licensed by the VA State Corp. Commission, Mortgage Broker # MC5642

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