Archive for the 'Retirement Plans' Category

Comparing Home Equity Loans to Reverse Mortgages

Posted on May 20, 2013 by danni

Home equity loans all but disappeared a few years ago after the financial crisis. However, it appears that home equity lending may be on the rise – with banks approving more of these types of loans.

If you are considering tapping your home equity to fund retirement expenses, then comparing a home equity loan to a Reverse Mortgage may be a good exercise for you.

  • Home Equity Loans: A home equity loan is a loan against the equity you have built into your home and you must pay it back overtime, starting immediately. As such, to qualify you must be able to prove that you are able to make the loan payments.
  • Reverse Mortgages: A Reverse Mortgage is a kind of loan that is not repaid until you leave your home and is often repaid with the sale of the home.

Both loans are great ways for seniors to gain access to their home equity. The costs and interest may be lower for home equity loans, but the available money is often higher and eligibility is easier for Reverse Mortgages.

Estimate Your Reverse Mortgage Loan Amount Now.

Compare Costs of Reverse Mortgages to Home Equity Loans by Talking with a Lender Now.

Learn More About Using a Home Equity Loan.

NewRetirement & Texas Tech Provide No Cost Access to Financial Planning

Posted on May 14, 2013 by danni

“Consumers can ask any question they wish of highly skilled financial experts. They post their questions anonymously and receive their answers free of charge.”

NewRetirement & Texas Tech Provide No Cost Access to Financial Planning

San Francisco, CA (PRWEB) May 14, 2013

Financial Planning Question and Answer

NewRetirement today announced that Texas Tech University’s Personal Financial Planning Department (TTU’s PFP) is among the high quality providers of retirement planning knowledge made freely available to consumers at NewRetirement.com. NewRetirement.com and TTU’s PFP share a vision of providing unbiased financial planning and knowledge to all Americans, regardless of their income, the amount of their investable assets or their level of financial sophistication.

Over the past decade, millions of individual consumers and family members concerned about their financial future have visited NewRetirement.com seeking to improve their retirement finances. Many of these visitors also have used NewRetirement’sretirement calculator. Now, in addition to using the retirement calculator to assess and identify ways to improve their financial plan, consumers can leverage NewRetirement’s social media platform to ask any question they wish of highly skilled financial experts. Consumers post their questions anonymously and receive their answers free of charge. Their questions can be posted either from within the retirement calculator or by participating in the open Question & Answer forum. If a visitor first receives a personalized analysis from the retirement calculator and then posts a question, a financial expert answering the question has the advantage of providing an answer that takes into account their unique financial situation. The financial experts can use this anonymous financial background information to provide a more detailed, accurate and customized response. An answer that takes into account each consumer’s unique circumstances provides them with an immediate benefit.

NewRetirement’s website visitors have asked questions and received answers that range from the broad & simple to the narrow & complex. Among the most commonly asked questions is, “How can I maximize the income I will have when I retire?” An example of a more complex question is, “Universal life insurance policy versus a Roth IRA? What are the advantages and disadvantages of both? What are the risks? Which offers more flexibility and control over your money?” Click on the questions to view the answers offered by master’s degree candidates at TTU’s PFP.

Steve Chen, NewRetirement’s CEO, remarks, “We are extremely pleased to be associated with Texas Tech’s PFP program. We have no question that the visitors to our website will benefit greatly from their contributions. They are an excellent complement to the other financial experts and consumers that pitch in to answer questions and help improve our website visitors’ retirement finances.” Dr. John Salter handles the relationship with NewRetirement for TTU’s PFP. He is currently researching the role of reverse mortgages in retirement distribution management and cash management and is an active CFP® certificant and wealth manager. He notes, “We were very pleased to learn that NewRetirement has built a social media and technology platform capable of delivering financial planning knowledge to millions of Americans. They have done so in a manner that aligns well with PFP’s vision of bringing sophisticated financial planning to everyone, particularly to those that often have the least access and greatest need for it, American families on Main Street. Combining our strengths magnifies the total benefit for all of these consumers.”

About Texas Tech University’s Personal Financial Planning Department. For the last two decades, TTU’s PFP has been a leader in producing research, scholars and professionals focused on providing financial knowledge to families and helping them achieve their financial goals. The answers from TTU’s PFP master’s degree candidates on NewRetirement.com are provided as general information only. Although TTU PFP graduates are eligible to sit for the CFP® certification exams (one of four requirements to become a full-fledged CFP® professional), no warranty is made regarding the fitness or accuracy of the information provided in their answers. Consumers should always seek advice from a licensed CPA, attorney or Certified Financial Planner™ as to their unique financial situation.

About NewRetirement Founded in 2004, NewRetirement’s mission is to make quality retirement planning available to everyone – online in an easy to use and understand format. Each month, the NewRetirement website serves hundreds of thousands of consumers seeking to improve their retirement financial situation. Annually, NewRetirement connects tens of thousands of these visitors with the products and services that best suit their needs. NewRetirement.com’s corporate headquarters is located at 100 Pine St, Suite 590, San Francisco, California 94111. Please reach Paul Lowrey, Director of Marketing, at 888-411-RETIRE (888-411-7384). Please send email inquiries via the site’s Contact Us page. The website URL is http://www.newretirement.com.

 

Retirement Health Costs are Higher than you Think

Posted on April 3, 2013 by danni

According to the Center for Retirement Research at Boston College, the above is largely true no matter how high you think they are.

A good rule of thumb for estimating health costs in retirement is that Medicare will, on average, cover 60%, while the remaining 40% come out of the retiree’s pocket. Unfortunately, according to a lengthy paper published recently by professors at UCLA and Harvard, most would-be retirees habitually underestimate the impact that health care costs will have on their finances, either blithely assuming that Medicare will take a larger share of the burden from them or failing to appreciate just how large that 40% liability is likely to be in terms of real dollars.

So how large is it? Large, at least according to the Urban Institute’s calculations. The median retiree will spend more than $6,000 per year on health care costs alone, while a particularly high spender (or one nearing the end of their life) may be spending as much as $14,000 yearly. This is all without counting any significant end-of-life costs (most retirees spend the majority of their lifetime health-care costs in the last eighteen months of their lives.

Given how large health care costs loom in retirement, it goes without saying that any significant underestimation of their impact can have a staggering effect on your retirement security. This isn’t to say that every retiree needs to budget $15,000 a year for such things, but a careful calculation of retirement expenses is impossible without an accurate understanding of the costs you are likely to face. For these reasons, NewRetirement has always recommended the use of a proper retirement calculator, if only to set realistic boundaries, not guesses, on what your expenses are likely to be, and what level of preparation will be necessary to ensure that you have the capacity to meet them.

Whether you use NewRetirement’s calculator or another source of information, nobody should go into retirement armed only with guesswork.

Learn more about the true costs of retirement with the NewRetirement Retirement Calculator.

Learn more about Supplemental Medicare Insurance at NewRetirement.com.

Are You $250,000 Short on Retirement Savings? You Are Not Alone!

Posted on April 3, 2013 by Editorial Team

According to a new study from Ameriprise Financial, there appears to be a significant disconnect between average retirement goals and reality.

While the study suggests that Americans have a positive view of retirement – with 78 percent of respondents expecting to be extremely happy, it seems that most Americans have a gap of $250,000 between their actual savings and what they will need to be comfortable in retirement.

The good news is that it is possible to manage this gap:  create a strong financial plan, work longer, live more frugally and eliminate credit card debt.  You could also consider a Reverse Mortgage or look for opportunities to downsize your home.

Resources:

–>  Do You Have Enough for Retirement?  Find Out by Using the NewRetirement Calculator.

–> Can Working Longer Help You Make Up the Shortfall?

–> Considering a Reverse Mortgage? Estimate Your Loan Amount Now.

Very Small Cost of Living Adjustment to Social Security for 2013

Posted on October 26, 2012 by Editorial Team

This week, the Social Security Administration announced a 1.7 percent increase to Social Security payments, beginning in January, 2013.  This will be one of the smallest hikes since adjustments for inflation were adopted in 1975.

You can see the Press Release from the Social Security Administration here.

Social Security payments average $1,131 a month — a 1.7 percent increase amounts to $19 additional dollars.

Unfortunately, much of the increase could potentially be wiped out by other costs in the coming year – factors like:

  • Higher gas prices
  • Increased food costs due to the drought experienced by much of the country this year
  • Higher Medicare premiums (though these will hopefully be offset by fewer other out of pocket costs)

 

If these factors do increase inflation in 2013, then the Social Security adjustment for 2014 will hopefully be higher.

RESOURCES:

Stop Sitting and Other Health News for Older Americans

Posted on August 15, 2012 by Rohith

According to numerous recent studies, sitting is going to reduce your life span!  In people who do a similar amount of physical activity, those who sit less will have a lower risk of dying compared to those who sit more.

Other recent health news:

  • Achy joints?  Eat this: Some research suggests that consuming the following foods could help alleviate osteoarthritis symptoms: strawberries, olive oil, salmon, green tea and leafy greens.
  • The eyes have it! In a recent study of Medicare beneficiaries, those who had cataracts removed were less likely to take a serious fall, experiencing 16 percent fewer hip fractures in the year after the operation.
  • Sleep! Getting good quality sleep can improve your overall health and a new study says it will help elderly people stay out of nursing homes.  If you have sleep problems, consult your doctor.
  • Spice it Up: Supplements containing a compound in curry spice may help prevent diabetes in people at high risk.\

RESOURCES:

 

 

New Resource for Optimizing Your 401k!

Posted on August 14, 2012 by Rohith

Most employers have probably given you a list of possible investments, but no advice on which ones are best for you and your retirement.  If you are frustrated by this approach, you may want to consider a service that can give you recommendations designed to optimize your investment returns while minimizing risks.

Smart401k is an easy to use solution to help you make the right investment decisions.  For a flat yearly fee they will tell you exactly how to invest your money now and help you rebalance your portfolio over time.

How Smart401k works:

1. Enroll online and pay a $199.95 yearly fee

2. Tell Smart401k about you and the investment options offered by your employer.

3. Receive an investment plan within a few days

4. Get periodic updates from Smart401k on how to shift or rebalance your account

RESOURCES:

 

 

Don’t Dismiss Reverse Mortgages!

Posted on August 14, 2012 by Rohith

The Consumer Financial Protection Bureau (CFPB) recently released a purely negative report that degraded the use of reverse mortgages. However, there are actually many benefits of a reverse mortgage.

First off, in order to qualify for a reverse mortgage, you must own and reside in your home and be a senior 62 years of age or older. (In most cases second homes, apartment buildings and homes less than a year old are not eligible for a reverse mortgage.)

Reverse mortgages must be considered with all other options like selling the home, downsizing, or moving to an assisted living facility. These types of loans are long term decisions because  there are insurance fees and mortgage interest that gets added to the loan balance every month. So someone that plans on selling in 5 years will have less equity.

For anyone who chooses to participate in a reverse mortgage program, they can take their money in regular payments for a fixed term, a line of credit, or select some combination of these choices by receiving the entire amount in a lump sum.

These special types of loans might be good options for homeowners that still have a mortgage, credit card debt, or need to make necessary repairs to their home. And with any financial decision, it is important to talk with trusted financial advisors to help make your decision.

The bottom line is this: reverse mortgages may not work for everyone but dismissing the service completely might prove to doom many households to poverty in old age.

Visit newretirement.com for a number of free services:

 

 



Retirement Realities in a Stumbling Economy

Posted on August 10, 2012 by Rohith

With a downward spiraling economy, there are a few realities that you need to keep in mind and take into consideration in order to land a safe and successful retirement.

  • The first strategy is working in retirement. According to experts, 70 is the new 65, in retirement terms at least. Working in retirement will keep paychecks coming and hopefully provide you with  benefits such as health insurance and retirement account contributions. Finally, continuing to work may also provide you the ability to delay claiming your Social Security benefits – for each year up to 70, your increase by about 8%.
  • Another strategy that can be taken to plan for a successful retirement is the Social Security claiming strategy. As mentioned above, delaying your social security benefits will result in an 8% increase each year. It may also be possible for one spouse to begin drawing half of the other spouse’s Social Security benefits while still delaying his or her own claiming date (and thus enjoying those 8 percent annual benefit increases).
  • Taking a reverse mortgage could be they key to plan for a successful retirement. A Reverse Mortgage, or Reverse Home Mortgage, is a great financial product for seniors to use in their retirement plan.When looking for ways to get cash from their home, most people consider selling their house or borrowing against their home equity and making monthly loan repayments on a home equity loan. To be eligible for most Reverse Mortgages, you must own and reside in your home and be a senior 62 years of age or older. (In most cases second homes, apartment buildings and homes less than a year old are not eligible for a reverse mortgage.)
  • Spending retirement assets is another consideration to take into account when planning for retirement. The standard advice given by a financial adviser is not to spend more than 4% of your assets a year. However, in reality, whatever number makes sense to you needs to be accompanied by a strategy to actually manage your retirement assets to produce whatever level of payouts you’ve selected.

Resources:

Continue here to find a prescreened Reverse Mortgage lender

 

Use our free Newretirement Retirement Calculator to plan for a safe retirement

—–> https://www.newretirement.com/retirement-calculator/default.aspx

Use our free Reverse Mortgage Calculator to see how much you qualify for

—–> https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx

Use our free Social Security Calculator to find out when is the best time to take your benefits

—– >https://www.newretirement.com/Services/Social_Security_Start_Age_Calculator.aspx


Click here to be matched up with a financial advisor to help you plan for a safe retirement

 

 

The Decline of Stocks and Bonds

Posted on August 8, 2012 by Rohith

Pimco’s CEO, Bill Gross, claims that stock investors should think twice before applying the well established investing maxim of buying and holding into practice, “the cult of equity is dying”.

According to an article on The Wall Street Journal, Gross points out stocks have averaged a 6.6% annual gain on an inflation-adjusted scale for the past century. However, he believes that this rate of return is unlikely to be duplicated anytime soon due to a downward spiriling economy around the globe and goes on to say that the 6.6% return will not ever be duplicated without productivity and innovation that resembles that of Apple. In fact, the U.S. second-quarter GDP grew at a meager 1.5% rate, well below historical standards.

In addition to criticizing stock’s dismal return returns, Gross also chastises bonds, “What you see is what you get more often than not in the bond market, so momentum-following investors are bound to be disappointed if they look to the bond market’s past 30-year history for future salvation, instead of mere survival at the current level of interest rates.”

With lower expected returns for stocks and bonds, the average American is the big loser in this new investing environment. Investors seeking a cure that will solve the world’s problems shouldn’t hold their breath as policy makers in the past have tried to “inflate their way out of the corner.” However, people speculate that the Fed will commence on another bond buying program in order to stimulate the economy.

Bottom line for America: Cut your spending, up your savings, and reset the retirement planning tool ‘rate of return’ to about 1% a year.

Resources:

Use our free Newretirement Retirement Calculator to plan for a safer retirement

——–>  https://www.newretirement.com/retirement-calculator/default.aspx

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