Archive for the 'Pre-Retirement' Category

How to Increase Your Social Security Benefits

Benefits of Waiting to Claim Your Social SecurityWinning Couple - Isolated

The New York Times, November 15th, 2013

For many who are over the age of 62, collecting your Social Security benefits is a rite-of-passage of sorts, the payoff of your years of letting the IRS take your hard earned money out of every paycheck.  For some, particularly those who have already retired or who don’t work, they can’t wait to start collecting it when they first become eligible at the age of 62.  But did you know that there could be benefits for waiting to start collecting it?

Much like an annuity, your Social Security can give you some guaranteed income for life.  But unlike an annuity, it doesn’t require you to put down a large sum of money up front, as your large sum of money has already been accumulated over the years from your paychecks.  However, the amount that you can begin to collect at the age of 62 (you can start accessing it anywhere between the ages of 62-70) is hardly enough for you to live on.  Click here to learn more about how waiting to start collecting your Social Security can get you a higher amount of guaranteed money for life.

Can an Annuity Help You Generate More Retirement Income?

Closing the Retirement Income Gapimg_supplemental_drugs

PBS Newshour, November 2013

The difference between a safe annual retirement income and basic retirement expenses is known as the retirement income gap.  Facing an alarming decrease in American workers who have a pension to count on, many people approaching retirement age are wondering where they are going to be able to find the money to live comfortably.  Where do you turn if you discover your 401k plan and Social Security will not generate enough money for you to enjoy your golden years?

Two good answers to this question, a reverse mortgage or an annuity, unfortunately both seem to have a fairly negative public opinion.  While it’s true that there are plenty of horror stories about either topic, there are likely just as many stories of people utilizing them properly and successfully.  We’ve covered reverse mortgages many times in this blog, so let’s focus on annuities.  For example, have you ever heard of a Single Payment Immediate Annuity before?  Did you even know there are different types of annuities available?  Read the article at the link listed below for more information about the potential benefits of annuities.

http://www.pbs.org/newshour/businessdesk/2013/11/what-if-you-outlive-your-savin.html

2013 Changes to the Reverse Mortgage Industry

Reverse Mortgages Get a HaircutReverse Mortgages

www.morningstar.com, November 5th, 2013

As you may or may not be aware, the Reverse Mortgage industry has gone through a significant makeover in the past year.  While the basics of the Reverse Mortgage are still the same, additional regulations have been passed by the Federal Housing Authority as a direct response to the rate of home defaults going up.  This has changed the amounts that you can qualify for and how you can receive your proceeds.

For those who are not familiar with the Reverse Mortgage program, it is a way for those of the age of 62 and over to cash in on some of the equity in their homes, and use that money in any number of ways.  You must first use it to pay off your remaining mortgage balance or any liens secured by your home (if you have either of these) which can relieve yourself from having to make monthly mortgage payments.  And if you have no mandatory financial obligations, you can have it broken down into monthly payments being sent to you, set up a line of credit that grows over time, or even put the money in your pocket for a rainy day and use it at your discretion.

Read the article at the link listed below to find out more about the new regulations and how they have changed the Reverse Mortgage industry.

http://news.morningstar.com/articlenet/article.aspx?id=617547

Baby Boomers Entering Retirement

Time for Baby Boomers to Grow UpBaseBall-Square

USA Today, October 21st, 2013

As hard (and in some cases, as depressing) as it may be to believe, many of the people from the so called “Baby Boomers” era are turning 65.  And “Boomer” or not, many seniors are having a tough time making the transition from employee to retiree.  The struggle can range from anywhere between planning out your retirement finances, all the way to finding things to do to fill your newly wide-open schedule.

Not to fear retirees!  There are many different kinds of services available to you to help you get into your retirement groove.  From talking with a retirement coach to help set goals and make plans for your retirement, to speaking with a certified senior adviser to help inform you on things like senior housing or health care, you have options.  Read the article at the link below to learn more about the services that are out there to help you maximize your comfort in retirement.

http://www.usatoday.com/story/money/personalfinance/2013/01/15/preparing-for-retirement-baby-boomers/1823723/

Can You Buy a New House Using a Reverse Mortgage?

Using a Reverse Mortgage for a Home PurchaseReverse Mortgages

The Wall Street Journal, January 29th, 2013

What is a Reverse Mortgage?  Many of us have seen the commercials on TV, Fred Thompson or Henry Winkler singing the praises of the many benefits of the program.  Yet public opinion of Reverse Mortgage still seems to be, as a general statement, negative.  Why is that?  If someone as universally loved as the Fonz thinks that it’s good enough to put his name on it, then why do so many still have a less than positive outlook on it?

It’s probable, in this blogger’s opinion, that it’s a lack of education on exactly how the Reverse Mortgage program works.  For example, did you know that you can get a Reverse Mortgage lump sum or line of credit whether or not your home still has a mortgage balance on it?  Or how about the fact that you can utilize a Reverse Mortgage in the purchase of a new home?  The latter, in particular, seems to be possibly the least well known aspect of the program.  Read the article at the link below to learn more about how you can get yourself into a brand new home in a brand new location, and not have to make any monthly mortgage payments after moving in.

Using a Reverse Mortgage for Purchase

Learning About the Economy

Understanding How the Economy Workswall

www.economicprinciples.org, September 22, 2013

Almost everyone is aware of how important it is to make a financial plan for your future.  And in most cases, it’s not just your future, but the future of you and your family, and for some, your business.  And while financial planning is a many-headed beast, the hero cannot vanquish the beast without understanding its nature.

It’s important to know how the economy works in order to best determine the financial plan most suited to you and yours.  But there are so many different aspects to the economy that even just the word “economy” can be intimidating.  And although you would have to go to school for years to really understand all of the in’s and the out’s of our economy, it’s still important to have at least a basic understanding of it.  Follow the link listed below to a video that gives a pretty thorough overview of how the economy works, in a way that is easy for almost anyone to understand.

http://www.youtube.com/watch?v=PHe0bXAIuk0

Free Online Course to Teach You About Retirement Finances

Masters Course in Finance Available Online

The New York Times, October 11th, 2013

Most of us could potentially benefit in any number of ways from going back to school.  The biggest motivation to do this for the majority of us would probably be to make more money.  But if you’re not ready to enroll for the Spring semester, what if there was a class that you could take to teach you more about what you can do with the money that you already have?  And what if you could do that from the comfort of your own home?

A finance professor at the Stanford Graduate School by the name of Joshua Rauh had a revelation.  He realized that his graduate-level course on the finance of retirement and pensions could be beneficial to more than just his students.  This is why he decided that he was going to make it available to any who are interested.  To maximize availability, it was going to be a free course and it would be offered online.   Read the article at the link below from the New York Times on the perks of what Professor Rauh’s class can offer to your average person, and how you can sign up!

http://www.nytimes.com/2013/10/12/your-money/for-students-of-all-ages-an-online-course-on-retirement-planning.html?pagewanted=1&_r=1

Can You Teach a Young Dog New Tricks Too?

Is Our Youth Finally Learning?

Market Watch, October 24th, 2013

In today’s high expense society, an alarming percentage of seniors are having a difficult time transitioning into their retirement years, financially speaking.  More and more are struggling to make ends meet on their 401K’s and Social Security alone.  And while many people in this age bracket like to talk about the “ignorance of youth,” is it possible that our younger generations are taking notice of the struggles they see their parents and grandparents are going through?  And beyond that, is it conceivable that they are actually taking pro-active steps to make sure they don’t face the same hardships?

A new study conducted by Wells Fargo & Co. says yes.  While 75% of people in their 40’s and 50’s are saying they regret that they have not started saving for retirement sooner, 34% of people in their 30’s stated that they already have a written retirement plan in place.  A pretty impressive number when compared to the 24% of those in their 40’s.  Read the article at the link below to read more about how our young people seem to be wising up to the need to plan ahead.

http://www.marketwatch.com/story/youth-beats-middle-age-in-retirement-planning-2013-10-24?link=MW_retirement_popular

Finances and Marriage: Retirement Edition

Financial Planning Can Lead to a Healthy Marriage?

Global Post, October 9, 2013

It’s a well known fact how common divorce is these days.  In the United States, the divorce rate is currently at an alarming rate of 53 percent.  But this isn’t just in the category of young people who are divorcing each other in their first few years of marriage.  Many would be surprised to learn that the divorce rate in married couples who are beyond their Silver Anniversary is on the rise as well.

Many of us could guess at the reason why some of these marriages are ending as some of us experienced our own parents going through this.  But would finances in retirement be on, or even near, the top of your list of guesses as to why this is happening?  Retirement is looked at by many as being the “golden years” of their lives.  But what if your idea of a dream retirement doesn’t match up with that of your spouse’s?  Read the article below to get some ideas on how to tackle some of the issues regarding retirement that, quite frankly, don’t come up all that often.

http://www.globalpost.com/dispatch/news/thomson-reuters/131009/till-death-not-retirement-do-us-part

Retirement Planning Options

Staying Ahead of Retirement Planning Stress

www.caring.com, September 17, 2013

It’s been a long road of building a life for yourself from the ground up, but it’s behind you now and you’re finally ready to start planning for your retirement.  But what does that entail?  Do you get to just stay at home, put your feet up, and trust that everything you might need will be provided?  If you’ve spent any time looking into retirement planning, chances are you know the answer to this questions is a resounding “No!”.

There are many things that need to be taken into consideration when planning for your retirement, but making sure your finances are in order is among the most important.  Under the heading of getting your finances in order comes making sure you’re getting the most out of social security, choosing the right healthcare plan, housing expenses,  and your cost of living.  What if, after reviewing your finances, it looks like you don’t have enough money coming your way to comfortably retire?  Who can you talk to in order to find out what your options are to maximize your retirement benefits?  And can you trust that whoever this is would be looking out for your best interests and not just trying to line their own pockets?

Read the article at the link listed below to give you some ideas on where you can get started to make sure your retirement will be everything you want it to be, or at least as close to that as possible.

http://www.caring.com/articles/retirement-planning



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