Peter Graves returns to television, where he gained his initial fame playing Jim Phelps in Mission Impossible, as an AAG spokesperson for reverse mortgages. These commercials, which will begin airing October 12, will highlight the benefits of reverse mortgages for seniors.
Archive Page 2 of 6
Here is a wonderful and helpful article in Usnews.com about the advantages and disadvantages of a reverse mortgage.
With 401k automatic enrollment gaining increased popularity in the past year, it appears not only are more employees increasing their retirement savings but also increasing U.S. savings by as much as $8 billion a year, according to the Retirement Security Project, an advocacy group partnered with Georgetown University and the Brookings Institute. Automatic enrollment allows employers to provide a 401k plan as a default; an employee must “opt out” of a 401k plan if they (foolishly) decide not to take part in it. According to the aforementioned organization, automatic enrollment could boost 401k contribution rates from 75% of eligible employees to as much as 95%. These stats are sure signs that 401k plans are getting spread across the board, but according to the Profit Sharing Council of America’s President David Wray, automatic enrollment “will be standard practice but not universal.” For example, large employers like Starbucks and FedEx have suspended their employee matches, but despite this fact it appears that 99% of employees have kept their 401k plans. To supplement the fact that more employees are signing up for a 401k plan, a recent Watson Wyatt study shows that 82.7% of eligible employees have balances in their 401k plans, up from 81.9% in 2007.
With the 10% reduction in principal limits on a federally insured reverse mortgage scheduled for tomorrow, October 1, it appears that lenders are getting swamped by last minute borrowers who want the most money for their reverse mortgage. The industry is trying its best to fill demand, but despite this fact it’s obvious that many seniors will not be able to meet the deadline. Leave a comment on reversemortgagedaily.com, and someone will contact you to let you know if you still have time.
According to Reversemortgagedaily.com, Genworth Financial Home Equity Association has just announced the debut of a fixed rate reverse mortgage product which will purportedly have a competitive interest rate of 5.625%. This low interest rate provides enhanced security for the reverse mortgage borrower. However, as with all financial products, make sure to weigh the pros and cons, so you can make an informed decision.
On August 27, I made a blog post about a retirement savings and college savings study. The study stated that 1/3 of people are saving for both equally, a third are saving for one over the other, and a third are not saving enough for either, and it provided no detail as to which option was the most prudents. Well, according to a recent ABC news article, saving for retirement should be your first priority. This article states that a 401k trumps a 529 college savings plan anyday, and also shows that people who are saving for their retirement early will be able to either pay for their children’s college down the road or be able to take on a tad of debt themselves.
A recent milestone analysis of three million employees’ 401k plans in 57 top corporations conducted by Hewitt Associates and the non-profit educational foundation Ariel Investments shows that there are significant discrepancies in retirement planning and saving amongst different ethnic groups. The study shows that just 65 percent of Hispanic workers participate in their company’s 401(k), while 66 percent of African-American employees, 76 percent of Asians and 77 percent of whites enroll. Among them, Latinos contribute 6.3 percent of their income, whites 7.9 percent, Asians 9.4 percent and blacks only 6 percent. This study while at its façade displays how different races plan for retirement differently, underlines how there are many ethnic, social, cultural, economic, and linguistic barriers to receiving retirement information, planning, and saving properly for retirement.
Retirement Revolution, a new series that looks at the stories of everyday people who have found ways not only to survive but thrive in this new retirement reality, premieres on PBS tonight. Our advisor Henry “Bud” Hebeler of Ask Bud fame has an interview on how to have a successful retirement in these tough times with such answers to questions like, Should savings patterns change during inflationary times?. Check out a part of his interview here.
I found this recent, very telling article,”End of Retirement,” about the fact that seniors are having to retire much later in life to provide for a secure retirement. They even chronicled a woman who works half days at a newspaper at the age of 101!
