Archive for the 'Housing' Category

Reverse Mortgages More Popular Than Ever

It may be a new year, but it’s looking like the housing market may continue to be less than wonderful.  In some parts of the country, home values are still declining and many people can’t seem to sell their homes.  One of the ways seniors can tap into their home equity is to get a reverse mortgage.

It was reported in the Wall Street Journal that reverse mortgages are once again gaining steam.  More lenders are beginning to offer the product again that allows you to take a loan against the equity you already have in your home.  MetLife originated 171% more reverse mortgages in 2011 than they did in 2010!  The program is tailored for homeowners ages 62 and up who want to stay in their home for a while and want to eliminate their monthly mortgage payments.

We can help you find a reputable lender in your area that can give you information on the program and tell you exactly how much money you can qualify for.

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Getting Paid to Be Your Parent’s Caregiver

Yesterday we talked about the trend of parents moving in with their adult children.  This trend will likely continue for some time and in many cases, the parent being home may create some extra work for the adult children.  Many times if the parent needs medical care, the adult child is forced to take time away from work or cut back drastically on hours in order to care for their parent.  This is why it’s important to point out that in some cases, the caretaker  may be able to receive compensation.

Recently, AARP highlighted some different ways that children can receive financial compensation for the care of their parents.  Much of it has to do with programs that are offered through the use of a Medicaid waiver.  Of course, Medicaid is not the most cash rich program currently, so the hoops that need to be jumped through may be quite large.  Another suggestion is to check the parent’s long-term care insurance policy, if they have it.  Some policies allow for a cash benefit for the use of in-home assistance.  And of course don’t forget – especially with tax time right around the corner – any deductible expenses the caregiver may have incurred to accommodate their parents needs.  Wheelchair ramps, safety bars or even the gas used to drive the parent’s to their doctors appointments may be deductible.

Do you have long term care insurance to protect you?  See how to select the best policy for you.

Will you be able to afford to stay in your home?  Use our retirement calculator to see how your retirement plan shapes up and you can improve it.

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Forced Multigenerational Living Arrangements

Often times we hear of parents having the burden of taking back their adult children who just can’t seem to make it financially in this economy.  But lately, a new trend has begun to take  shape – adult children having to help out their parents.

According to a study done by the Pew Research Center, out of the adults who have parents ages 65 and older, 39% have reported that they helped their parents financially in the past year.  One in 25 of unemployed Americans ages 55 and older have been forced to move in with their friends or family due to money problems.   Many factors contribute to this new phenomenon, but Social Security not being enough to live off of, retirement savings being depleted due to forced retirement or unemployment and medical costs skyrocketing for those who need treatment, are issues that are not helping.   It’s not to say that families staying close and living under one roof is bad, but the trend is showing that when parents move in with their adult children, they fear they are being a burden.

Would you want to move in with your adult children or would it be a last resort?  And do you think the trend of parents moving into their adult children’s home is a trend that may continue even if the economy gets better?

See how long your nest egg will last.  Use our Retirement Calculator and determine ways to stretch it a little further.

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Sunny Thoughts

It’s still technically fall, but in a lot of places, the winter weather has already slammed residents and put a wrench into many people’s holiday travel plans.  So today, as you turn on your heat and prepare for cold, windy, rainy or snowy weather, take a moment as you mash those potatoes for tomorrow’s dinner and let yourself daydream about the sunniest places to retire.

U.S. News provided a list of the ten sunniest places to retire just in time for people to become sick of the gloomy weather where they live.  Number one on the list is Yuma, Arizona.  90 percent of the time, the sun is shining in Yuma!  It’s also the least humid according to the National Climate Data Center.  The dry air is a positive for people with health related issues such as arthritis or muscular problems that do not react well to cold and humid climates.  Fresno, California also makes the list at number 7.  Another sunny Arizona city is Flagstaff.  It’s a nice change from the other Arizona cities because it’s not so hot.  The temperature rarely rises above 90 (and it’s a dry heat!) and snow still falls in the winter – though it usually melts before it can cause too much damage.  Click here to see the full list of top ten sunniest cities for retirees to keep you warm this holiday!

Can you afford to move to a sunny and popular location?  See how far your retirement savings can stretch by using our retirement calculator.

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Group Helping Seniors Stay in Their Homes

Stories of people doing good things are hard to come by and that’s why we wanted to include one in our blog.  It’s no secret that many seniors throughout the U.S. are having a difficult time staying in their homes as values continue to decline.  One option that could help seniors is getting a reverse mortgage, and a non-profit organization in North Carolina is helping do just that.

The Foundation For Homeowners is a group that helps seniors by providing free counseling services to those in danger of losing their homes.  People never want to be forced from their homes against their will and through reverse mortgages, the foundation can help seniors continue to stay in their homes.  The president of the foundation, Lolita Stevenson said, “We focus only on those seniors that want the reverse mortgage but are not qualifying for various reasons.”  The foundation works with the homeowner to make any repairs that may need to be done to get them up to code for a reverse mortgage loan.  Sometimes they may even be able to work with homes that may be considered a short sale.  Currently, The Foundation For Homeowners is counseling between 15 and 20 seniors a month and their success rate for getting seniors reverse mortgages is between 70-75%.

Thinking about getting a reverse mortgage?  See if one is right for you.

See how strong your current retirement strategies are by using our Retirement Calculator.

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Senior Move Managers

Have you ever heard of a Senior Move Manager?  Many people haven’t, but it’s a service that many people may find helpful.  A simple concept but potentially a life saver, a senior move manager takes on the stressful job of relocating seniors.  Unfortunately, sometimes the move of a parent or elderly loved one cannot be planned.  In some cases, an event occurs and one must move their loved one immediately.  It can be extremely overwhelming – imagine staring at a house where someone has lived for decades. Where do you begin?  What do you keep?  What do you throw away?  How do you organize donations?  It can be a job that is too much for someone.

The services are not cheap – Senior move managers can charge anywhere from $40-$125 per hour.  But as Mary Kay Buysse, a member of the National Association of Senior Move Managers, said in an interview with AARP, the movers are needed when, “situations where a move is immediate and necessary because of the loss of a spouse, loss of health or ability to live independently.”  This is a fairly new service that is beginning to catch on and may help you when you need assistance with an unexpected move.  Visit the National Association of Senior Move Managers website to read more on the service and find movers near you.

Read about options for senior living here.

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To Move or Not To Move…

Think you can’t retire early?  Or even at the age you had been hoping for?  It seems like all the news about retirement lately has been negative – pensions being eliminated, retirement funds being depleted, Social Security benefits being cut and so on and so on.  There is one major decision people can make to keep the dream of early retirement alive and that is whether or not they want to sell their home and move to a cheaper town.   Many people want to stay in the home where they raised their children or stay in the community they have loved for so long.   But for many people who live in expensive cities and have a lot of equity invested into their homes, moving may be the best bet to landing that early retirement.

For example, the average home price in San Francisco, CA is $813,000.  The same home would cost you closer to $259,000 in Lexington, KY.  And if you downsized to a smaller house, that price difference would be even bigger.  For many folks who are beginning to reach retirement age, the burden of taking care of the large house that they raised their children in is too much.  And sometimes the idea of starting over in a new place can be an exciting adventure.

What are your plans?  Are you planning to stay where you are?  Or are you thinking about moving to a less expensive community?

Curious to compare cost of living expenses in your town to others?  Try Bankrate.com’s cost of living calculator.

Not sold on the idea of moving and want to stay in your home? See if  a reverse mortgage may be right for you.

Sign up for one of our informational retirement newsletters!

Planning to Stay in Your Home?

Would you prefer to stay in your home for as long as you can?  If so, you are in the approximately 80% of American’s, ages 45 and older, that want to age in place.  Unfortunately, many people are finding that the homes they bought previously are just not accessible for them as they get older.

That’s where a style of design called universal design comes in – a type remodel that allows for barrier-free access for homeowners of all types.  In the past, it was easy to spot a home that had been outfitted for someone who needed a little help because most of the time, it resembled a hospital.   Now,  this type of design is getting called “cutting edge” because of rooms that involve rock-rivers, cascading waterfalls and even glow in the dark stability grab bars!  And due to many boomers beginning to plan out where they want to age, this type of business is booming.

Read the full article, “Remodeling Now to Avoid Accessibility Problems Later,” here.

Have home equity?  Use a Reverse Mortgage to help fund your remodel!

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Shacking Up and Other Baby Boomer Retirement Strategies

March 14th, 2011

Retirement
housing
is
a critical consideration for retirees.  Your home can be either be a big
expense, a source of wealth or maybe even the nexus for leisure
activities.

Baby
boomers are likely to redefine exactly how, where and with whom they live in
retirement.  Continuing-Care Retirement Communities (CCRCs) are growing in
popularity and many seniors are looking at co-housing.


“They helped change the political landscape and American culture, and it’s clear baby boomers
will change what life in retirement will look like. And with their
sheer numbers — 78 million — they may also shift the landscape of
where retirees live, too.

The first explosion of new retirement community options over the last two decades included some 1,900 continuing-care retirement communities (CCRC). But experts say that as the first group of boomers reaches retirement age this year,
expect to see new retirement living options — and twists on old
options that better cater to boomer desires to stay educated, have easy
access to care and remain independent.”

Read more of this article.

Sometimes it takes a village to let seniors stay at home

USA Today, February 21st, 2011

“Hell, no, we won’t go!”

That’s the answer I hear most often from seasoned
Baby Boomers when I ask if they’re getting ready to move to retirement
communities.

For starters, they don’t plan to
retire before 70. And most want no part of the elder islands where their
parents retreated from the hustle of city life into a largely
sedentary, age-segregated existence.

The
Village Movement is a popular alternative. The drivers of this movement
are feisty professional women in their 50s and 60s who are determined to
change the experience of aging by empowering and enabling adults to
remain in their own homes or apartments to the end of their lives.

The
movement, launched eight years ago in Boston with Beacon Hill Village,
has spread to Washington, Chicago, San Francisco and more than 50 other
cities. Hundreds more are in formation.

Boomers
now over 50 want to belong to communal families, networked into a
virtual village. It’s partly a resurgence of the commune spirit of the
1960s and a throwback to the villages of a pre-urbanized America, where
people looked out for one another through good times and bad.

Science
tells us today that anyone who hopes to enjoy a happy, healthy later
life needs to feel part of a larger group. Family members are not
enough.

We need to build new and diverse
friendships with people younger and older than ourselves — relationships
that are built on affection, not obligation.

Typically, the great majority of joiners in the Village Movement are women.

“It’s
the women who see the value of socialization,” says Bob Davis, the only
male board member of the 9-month-old Ashby Village in Berkeley, Calif.
“The men are happy in their workshops or reading or doing some solitary
activity.” Beneath this common divergence among couples is the fact that
the women anticipate becoming caregivers. The men expect to be cared
for by their wives.

Read more of this article.



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