Archive for October 30th, 2006

Risk To Heirs Gone With Reverse Mortgages

Posted on October 30, 2006 by Jason

KCRA.com, October 30th, 2006

Elderly homeowners have plenty of equity in their homes once their
mortgage is paid off, but for those who live on a fixed income, paying
for anything outside of normal expenses can pose challenges.

Reverse mortgages can offer senior citizens a way to solve the house-rich, cash-poor dilemma without risk to their heirs.

Reverse mortgages allow homeowners to turn the value of their home into
cash, and they don’t have to pay back until they die, sell the home or
permanently move from the house, according to AARP.com.  Browyn
Belling, the AARP Foundation’s reverse mortgage specialist, said the
loans are a relatively new way to tap into home equity for those who
are 62 and older. 

In a conventional “forward” mortgage,
homebuyers borrow a lump sum and make monthly payments, reducing the
principal and interest over time. But with a reverse mortgage, there
are no monthly payments.

“You don’t have to pay anything back for
as long as you stay in your home; 85 percent of our survey respondents
want to stay in their homes. Reverse mortgages let them tap that
equity,” Belling said.

Read more of this Article.   Learn more about Reverse Mortgages.

Seniors fret over changes in Medicare drug program

Posted on October 30, 2006 by Jason

USA Today, October 29th, 2006

Gordon Musch stares into a computer monitor and listens while an insurance counselor peppers him with unfamiliar terms.

For Musch, like millions of other seniors and
people with disabilities, it’s time to learn again about Medicare’s
prescription-drug program. It was confusing the first time around. Now,
there are even more plans to consider for 2007. The enrollment period
begins Nov. 15 and ends Dec. 31, but officials say those who wait past
early December could face delays.

The lowest-priced premiums have risen
considerably. Lists of covered drugs have changed, as have rules that
must be followed to get coverage.

And plans that last year provided continuous
insurance throughout the year for all drugs now have a “coverage gap”
for brand-name drugs. Most plans have a gap that begins when total drug
costs reach $2,250 and ends when the beneficiary has spent $3,600 out
of pocket.

For all those reasons, experts say, virtually everyone in the program should shop around.

Read more of this article.

NewRetirement Blogs Home