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5 Trips You Need To take in Retirement

5 Trips You Need To take in Retirement
5 Trips You Need To take in Retirement

As spring draws near, many people are beginning to think about ways to get out of the house and escape the winter blues. For retirees, there’s no better way to do that than taking the trip of a lifetime!  If you are considering taking a bucket-list vacation over the next year, here are some destinations you may want to consider.

IRELAND

The green rolling hills and rocky countryside of Ireland is a great destination for retirees.  Spend your days exploring historic castles and driving through the countryside, then spend your evenings in the warmth of a local pub enjoying delicious fare.  The wonderful thing about Ireland is you can make your trip as adventurous or as leisurely as you want to.

AUSTRALIA

Although the plane ride is long to Australia, it’s worth the time and investment for the once-in-a-lifetime experience.  Scuba dive the Great Barrier reef, take in a show at the Sydney Opera House or spend a day exploring Kangaroo Island! A trip to Australia is full of adventure and excitement – something you definitely want to experience in your lifetime.

FRANCE

Wine, cheese, beautiful gardens, and warm summers – a trip to France is a retiree’s dream! Taking a trip to France when you are a retiree is wonderful because you get to experience all of the sites you’ve always wanted to see, yet overnight accommodations and inter-country travel are rather inexpensive.

ROUTE 66

It might not be an exotic location, but you can’t beat a classic road trip down Route 66. Eat at some of the most iconic diners in America and see many national landmarks along your way! As you drive down the road, you can stay in classic motels or take your RV along for a more homey feel!

BELIZE

If white sandy beaches and clear oceans are more your styles, Belize is where you need to be as a retiree! The luxurious resorts and exotic adventures are more than any all-inclusive resort can offer!

If you want to cross off some of these adventures from your bucket list but aren’t sure how you will afford it, consider talking to your financial advisor about a Reverse Mortgage. 

Essential Factors to Consider in a Retirement Budget

Essential Factors to Consider in a Retirement Budget
Romantic Senior Couple Sitting On Wooden Jetty By Lake

When you sit down to create your retirement budget, it may be difficult to know where to begin.  It is easy to remember elements such as housing, healthcare, and groceries, however, there are other important elements to consider. Take a look at this list of essential factors to consider in your retirement budget:

Spousal Retirement Funds

If you have a spouse, you need to consider whether or not they have funds to contribute to your retirement goals.  If your spouse has funds to contribute, you need to decide a plan together and figure out how much you have and how it will be used.  For example, do their funds cover basic expenses like home insurance and taxes? If not, perhaps their funds more suited for recreational spending?

As much as you need to consider what you will do with your spouse’s retirement funds, you also need to consider what will happen if those funds are no longer available.  If your plan is to have the funds to cover basic expenses, do you have a back-up plan if and when their retirement money is no longer available?

Taxes

Unfortunately, taxes don’t end when you retire. Therefore, when you create your annual retirement budget you will need to consider how much you should set aside for taxes and when the money for taxes is available.  If you aren’t sure how to calculate your taxes, talk to a financial advisor or a CPA and ask for help.

Emergency Situations

Everyone needs an emergency fund, especially retirees.  Do you have money set aside from your day-to-day budget to cover car repairs, home upkeep, or unexpected surgeries? If possible, separate money for unexpected expenses from money for pleasure, such as vacations or hobbies.  If you do, you won’t have to sacrifice a bucket-list item for an expense that doesn’t provide any fun.

Remember, how you create your retirement budget is entirely up to you. If you are worried that the money you have saved for retirement is not enough, there are always financial resources such as the Reverse Mortgages that can help you achieve your goals.

How Can I Retire with Enough Money to be Comfortable?

How Can I Retire with Enough Money to be Comfortable?
How Can I Retire with Enough Money to be Comfortable?

It’s not uncommon today to hear that you will need at least $1 million saved to live a comfortable life during retirement.  Yet, the average individual of retirement age has only slightly about $200,000 in their 401k account. With numbers and facts like these, it is easy to understand why many younger individuals panic when they think about cutting the cord on their career and settling into a more relaxed lifestyle.

If you happen to be concerned about your future and the amount o the funds you have saved for your retirement, you’re not alone. To help you out, here are a few tips.

Start Saving Early

Perhaps the ship has already sailed for you on saving for retirement at an early age. If it hasn’t however, you should know that there is no better time to start than now. The younger you begin investing the longer your money has to mature and acquire interest.

Always Take Advantage of the Employer Match

A company that matches your retirement savings is hard to find these days. Therefore, if your company is willing to invest in your future, you should be smart enough to take advantage of it.  That means, if your company is willing to match your investments up to 3%, then you should always invest at least 3% of your salary to get the most out of your benefits.

Consider Diverse Financial Solutions

By simply putting money into your investments or savings accounts you may never reach the $1 million savings goal. It is important to know, however, that there are other financial solutions that can help you live comfortably during retirement. Some of the most popular alternative financial solutions include annuities and reverse mortgages.

Talk to a Financial Advisor

If you are feeling amiss about your financial goals for retirement, it’s never too late to talk to someone.  And, if you don’t have a financial advisor or trusted expert the best time to find one is now. To start setting your financial goals you can trust the professionals at Reverse Mortgage Answers. They always have your best interest in mind!

5 Things to Consider Before You Get a Reverse Mortgage

5 Things to Consider Before You Get a Reverse Mortgage
Group of cheerful seniors enjoying time together drinking tea outdoors in cafe and sharing life stories in retirement

Reverse Mortgages are one of the most popular financial resources for individuals in retirement.  Yet, making the decision about a Reverse Mortgage is not something that should be taken lightly. A Reverse Mortgage, like any other financial decision, comes with responsibilities. Therefore, here are a few things you should consider before making your decision. 

Will you qualify for a Reverse Mortgage?

If you have retired at a young age (under the age of 65), a Reverse Mortgage may not be the financial resource you are looking for at this time in your life.  In order to qualify for a Reverse Mortgage, you must be at least 62 and have enough equity in your home to pay off any mortgages.

Are you counting on money from the sale of your home to meet other needs?

Although you are not required to make payments on a Reverse Mortgage, it still needs to be repaid sometime in the future. Most individuals who obtain a Reverse Mortgage pay off the debt using funds acquired through the sale of their home. If you have other plans for those funds, you might want to consider another financial resource.

How will you use the funds you obtain through a Reverse Mortgage?

There are many great reasons why you might want to obtain a Reverse Mortgage. Travel, home renovations, and medical expenses are just a few of the things you can do with the money you receive. Although there are no restrictions on how you spend the money from a Reverse Mortgage, it is a good idea to know your plans before you acquire the funds.

Do you understand the fees associated with a Reverse Mortgage?

Yes, there are fees associated with a Reverse Mortgage, but they are no different from the normal fees associated with borrowing money.  It is, however, important to understand the fees before you apply for a Reverse Mortgage.

Do you feel comfortable with all of your Reverse Mortgage options?

Remember, the Reverse Mortgage is a flexible program so you have many options available to you. Before signing on the dotted line, be sure to inquire with a Reverse Mortgage specialist about all of your options. 

If you want to know more about Reverse Mortgages and if they are the right solution for you, call the professionals at Reverse Mortgage Answers today!

5 Myths About Reverse Mortgages You Need To Know

5 Myths About Reverse Mortgages You Need To Know
5 Myths About Reverse Mortgages You Need To Know

Reverse Mortgages are intimidating to most people. Not because they are actually overly complicated, but because there are many misconceptions about Reverse Mortgages that continue to perpetuate.  Today, we are going to dispel 5 common myths about Reverse Mortgages you need to know so they aren’t so intimidating.

Myth #1 Reverse Mortgages are only for people who have no other options.

Many people think that they can only apply for a Reverse Mortgage if they have run out of other financial options.  However, most people who apply for Reverse Mortgages and are approved actually have an abundance of other financial options, but choose a Reverse Mortgage because it offers a great deal of flexibility.  It also provides for tax-free cash without creating a monthly payment. 

Myth #2 If I get a Reverse Mortgage, I can never sell my home.

It is true that in order to have a Reverse Mortgage, you have to live in your home.  However, you still own your home and can move or sell at any time.  You simply have to sell your home and pay off the balance of your Reverse Mortgage before doing anything else.

Myth #3 By doing a Reverse Mortgage, I give up ownership of my home.

Rest assured, you allows own your home when you do a Reverse Mortgage.  With a Reverse Mortgage, you are simply taking a loan out for the amount of equity you have in the home.

Myth #4 Reverse mortgages are too expensive.

Although there are fees associated with a Reverse Mortgage, many homeowners find they are comparable to the closing costs of a traditional mortgage.  Furthermore, homeowners who take a Reverse Mortgage believe the fees are worth the benefits they receive from the loan.

Myth #5 If I don’t pay off my Reverse Mortgage, my kids will have to.

Don’t worry! Taking out a Reverse Mortgage doesn’t mean you are leaving your kids with your debt.  If you pass before the balance of the Reverse Mortgage is paid in full, it will be repaid by the proceeds from the sale of your home. And, if the proceeds are not enough, your children are not responsible for the balance. The government guarantees this protection to you and your heirs. 

Now that you understand the facts about the Reverse Mortgage, it’s time to talk to your financial advisor or a representative from Reverse Mortgage Answers to get you on the track to a happy retirement!

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!

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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