Simply Junior

With the economy in a slump (Ok, let’s call it a recession) and inflation on the rise seniors and baby boomers are looking for alternative sources to fund their retirement. New retirement income strategies may be the answer. If you are a senior citizen, it goes without saying that you are probably concerned with your retirement income. Whether it’s having enough retirement income, or with finding additional retirement income strategies. If you are about to retire, you’re probably doing the math, consulting with financial planners, as well as shedding a few tears over the loss that your 401K took with the recent stock market plummet. If you are retired already, you’re watching your budget, saving and planning, and focusing on that almighty budget. Perhaps you are living on Social Security alone, in which case you may be really pinching pennies. Well, in any case, we have want you to know about some new retirement income strategies that will make a difference in your income AND in your lifestyle.

There’s something you may have heard of in recent years; it’s called the reverse mortgage. It’s very similar to a home equity loan, but the key is, you DO NOT PAY THE LOAN back, not in your lifetime anyway. Various rules apply and there is interest involved with the loan, as well as an origination fee, but it’s considered by many financial planners and industry experts one of the best retirement income strategies available. The reverse mortgage is not right for everyone, or in every situation, but you owe it to yourself and your loved ones to at least inquire about the details.

Below you will find some facts and guidelines regarding the reverse mortgage and it’s implication on your finances. We want to stress again that this strategy may not be right for you, but you should at least be aware of it as a retirement income option. The reverse mortgage is a unique loan product, sponsored and insured by the US Government (created by HUD and insured by the FHA.) Reverse mortgages are a safe, viable means of achieving additional retirement income. Highlights of the reverse mortgage income opportunity are listed below.

Reverse Mortgage Retirement Income Benefits
The money you receive is tax free income No payments as long as you live in the home No credit or income requirements Reverse mortgages are supported by Senior Organizations Reverse mortgages are insured by the FHA You retain ownership of your homeReverse Mortgages Retirement Income Requirements Borrowers must be Age 62 years or older Own their home and have enough equity in to qualify Occupy the home as primary residence Receive counseling by an approved HUD/FHA counselor The home must be in reasonably good repair Reverse Mortgage Retirement Income Payment Options Lump sum disbursement Monthly payments Line of credit A combination of the Above Reverse Mortgages should be considered among your retirement income strategies. They provides safe, tax free retirement income, that DOES NOT HAVE TO BE REPAID, in your lifetime, or as long as you live in the home. This retirement income program was specifically created to afford seniors more retirement income, and new strategies for planning their retirement. Let’s face it, if you did not plan effectively for your retirement income, then you definitely need new sources for retirement income.

Certainly there are additional retirement income strategies, other sources of retirement income. We just wanted to shed a little light in the reverse mortgage and the positive impact that it might have for you.

Remember though, that it’s not right for everyone. We recommend seeking counseling and looking into other option. Feel free to contact us regarding Senior Reverse Mortgages for additional details, or to locate a reverse mortgage provider.

During our working lives, many people fail to realize the importance of saving for retirement. In order to live the lifestyle you desire after you quit working, it’s important to build a nest egg prior to your retirement years that you can support yourself on. It’s never too early to start saving, and the longer you wait the less money you’ll have accumulated by the time you reach your golden years. In order to ensure a comfortable lifestyle once you retire, it’s important to take steps now to save the money you’ll need to support yourself for the rest of your life.

In order to start saving money now, it’s important that you create a budget and stick with it! Living within a budget is one of the most effective ways to save money and plan for the future, because it allows you to live within your means without going overboard. By creating and maintaining a budget, you know exactly how much money is coming in and how much money is going out. Cut back on unnecessary expenses and consider setting that money aside in a retirement savings account.

You’ll also want to review your retirement plan with your company to understand every aspect of the plan and how it will work for you in the future. Whether you have a 401K or another type of retirement plan through your job, it’s important that you know how the plan will work for you. By following these simple steps, you can be well on your way to ensuring your retirement years are comfortable. Preparing for your retirement now will benefit you immensely in the long run by ensuring you have enough money to live on and won’t have to work past your retirement age.