If you own a mobile home and are interested in a Reverse Mortgage, good news! We have found a lender who is now offering Reverse Mortgages on mobile homes.
However, to qualify you must own the land on which your home exists – the land cannot be leased — and your home must be:
RESOURCES:
If you are interested in tapping your home equity for retirement expenses, you may have a few options: refinance, secure a Reverse Mortgage, or downsize.
The solution that is best for you will vary greatly on your needs, time frame, other resources and goals.
The reality is that all options have significant pros and cons. As such it can be a very good idea for you to actively explore all opportunities with lenders in order to get a better understanding of what each opportunity will really mean to you and your retirement – both now and in the future.
RESOURCES from NewRetirement:
Adding to the massive problems of trying to fund medical care as you age is the trend of doctors opting out of Medicare. Many older people are finding that their doctors are no longer accepting Medicare either because they have opted out of the insurance system or they are not accepting new patients with Medicare coverage. These doctors say that Medicare reimbursement is too low and paperwork is too big of a hassle.
If you are having a hard time finding a doctor that accepts Medicare, try these options:
Medicare Supplemental Insurance Resources from NewRetirement:
Investing your retirement savings can be stressful and confusing. An easy rule of thumb though is to subtract your age from 100 — the difference is the suggested percentage to be in stocks or other risky investments. For example, if you are 65 years old, you should have 35 percent of your assets in the stock market.
However, that equation probably doesn’t really give you enough information for the right way to safely and efficiently invest your money. Luckily there are many relatively new investment advisors that have automated their investment advice online – making it a potentially less expensive option than hiring a full service financial advisor.
NewRetirement has researched and screened these asset allocation services. Companies like MarketRiders can help you identify the right investments, reduce fees, and alert you when you need to rebalance.
The medical costs for keeping the Baby Boomer generation in good health has, and will be, skyrocketing for the years to come. It is projected that there will be 15 million people with Alzheimer’s by the year 2050 – nearly triple the amount in present day. The cost of dementia care is also projected to shoot from $200 billion to $1 trillion in today’s dollar.
As a result, many people will begin taking in elderly relatives. According to a recent article from NPR.org, more than 50 million Americans reside in multigenerational homes. And in many of these households, middle-aged “children” are caring for elderly parents, as well as providing shelter for their own grown children.
Do You Have the Best Supplemental Medicare Plan at the Lowest Cost? Get Instant Quotes Now.
Use the NewRetirement Retirement Calculator to Find Out if You Can Afford Your Retirement.
Having financial security throughout retirement is what every working American strides for. However, with declining asset portfolio and house values, it is easier said than done. Planning for retirement can take a wicked twist if one is laid off within a few years of their pre-determined retirement age. According to a New York Times article, the average time someone 55 or older was unemployed was 52.2 weeks. In order to cope with a catastrophe like this, one needs to know a few strategies that will assist you to get back on pace to retirement.
A simple strategy that can be taken is to consider a part time job. Even if this means you’re bringing in $700 per month, this is money you would not have had otherwise. The next step is to figure out the bare minimum you absolutely need and set aside the amount. Finally, deposit the excess into your savings account.
If working part time is not for you, consider tapping into your retirement savings; taking the 10% hit on the amount withdrawn might be worth reducing the damage that could be inflicted in taking a loan and building up debt before retiring.
Paying for health insurance is another critical strategy for coping with not generating income with retirement on the horizon. The first step is to take an early (penalty-free) withdrawal from your I.R.A. to pay for health insurance premiums. After that, you need to pay for your insurance during the year you received unemployment benefits.
For most retirees, their main objective is to maintain cash flow throughout their retirement years in order to avoid running out of. According to US News, more than half of retirees age 65 and older get at least half of their retirement income from Social Security. It has been established that the maximum safe annual withdrawal from an account begins with a first year’s withdrawal equal to between 4.0 percent and 4.25 percent of the initial portfolio value. Many retirees find that this is uncomfortably limiting and therefore tend to draw more than that amount. There are three strategies considered that involve the use of home equity as a supplement to withdrawals from the account
The first strategy holds that conventional thinking maintains that home equity, drawn upon in the form of a reverse mortgage, should be used as a last resort. This article on reversing home equity to supplement retirement income shows that cash flow drawn from home equity uses either of two more active strategies (below), in conjunction with withdrawals from the account, yields cash flow survival probability that is significantly greater than the more passive approach of using home equity as the last resort. This is known as the “conventional strategy.”
The second strategy for coping with excess withdrawals from the safemax account is a reverse mortgage credit line. In this strategy, the credit line is drawn upon every year to provide the retirement income until it is exhausted and only after the credit line is exhausted are withdrawals taken from the account. This is referred to as the “reverse-mortgage-first strategy.”
The third and final strategy also uses a reverse mortgage credit line, but withdrawals from the credit line are taken in some years and not others. According to the article on supplementing retirement income, the withdrawals are taken according to an algorithm that is coordinated between the account and the line of credit, this strategy is termed the “coordinated strategy.” The use of these active strategies is likely to result in a higher residual net worth after 30 years than the use of the conventional strategy.
Are you considering a reverse mortgage? Use our free reverse mortgage calculator to find out how much you qualify for.
