If you're running the numbers, make sure you consider the full costs of ownership, such as maintenance, taxes, and insurance. Many renters dream about eventually owning their own home. There can be many perks to becoming a homeowner—from having more control over your space to building equity and potentially benefiting from rising home values. But it also might be one of the biggest financial commitments you'll ever make, and it's not the right move in every situation.
Read on for 5 key questions to consider as you're weighing this momentous decision of if you should rent or buy. (In addition to answering these questions, try Fidelity's rent vs. buy calculator for a look at how the numbers stack up in your particular situation.)
Why it matters: If buying overstretches your finances, you might be less able to cope with a financial emergency or save for other important goals like retirement. Plus, an inadequate down payment or subpar credit score might leave you at a disadvantage if you're trying to get an offer accepted in today's competitive buying market.
What to consider: The relevant aspects of your finances include:
Why it matters: When you buy, you'll face a boatload of one-time expenses, like broker fees, mortgage origination fees, and title insurance. The longer you stay put, the more time you have to spread out those costs and for your home to potentially rise in value.
What to consider: If you're planning to stay less than 3 years, it likely doesn't make financial sense to buy. (Staying less than 2 years can come with particular tax disadvantages, because you generally won't qualify for a capital gains tax exclusion. This means you'll owe capital gains tax on the full amount of any increase in your home's value.)
Why it matters: You might assume buying is a better value because it lets you build equity in a home. But that may not be the case if rents are low relative to purchase prices in your area.
What to consider: In any comparison, first make sure you're looking at similar properties in the same area (i.e., don't weigh renting your city studio against buying that country cottage). Then you can compare the renting and buying price tags with:
Some people decide with their guts. Others want a detailed analysis. If you're in the latter camp, here are some finer points to keep in mind as you're calculating your rent vs. buy comparison: Factor in the full costs of ownership. In addition to mortgage payments, you'll face property taxes, insurance, routine maintenance, and occasional larger upgrades. (One guideline is to estimate maintenance costs at 0.5% of the home's value per year.) Double-check on that mortgage interest deduction. It won't make sense for you to deduct interest unless all your itemized deductions are greater than the standard deduction (which in 2023 is $13,850 for individuals and $27,700 for married couples filing jointly). Consider your next-best use for that money. Remember that a home isn't the only way to build equity. If renting is cheaper, you could invest the money you save by renting in a diversified portfolio to potentially build wealth over time.
Why it matters: Although home prices have historically risen over long periods, there's no guarantee that they will in any given time frame or in any particular area. Plus, what matters for you will be the value of your specific property, which can be influenced by everything from the local economy to whether your neighbors take good care of their lawns.
What to consider: Think about how you'd feel if your home's value didn't budge over 10 years or didn't rise as much as inflation. If you buy, you'll need to accept the possibility that your home won't be a great investment.
Why it matters: Buying a home isn't just a financial transaction. It's also a source of added responsibility, and for many people, pride and satisfaction. You want to make a decision that you can feel good about years down the line.
What to consider: Ask yourself if you feel ready for the level of commitment that owning a home entails. If being on the hook when the basement floods or the roof leaks terrifies you, it could be you're not quite there yet. On the other hand, if you know you want to put down more permanent roots, then you might be ready to take the next step.
Ultimately, the numbers can help you decide, but they can't decide for you.
Looking to bring your homeownership dreams closer to reality? Consider setting up a savings goal to help you build your
down payment or learn more about the steps in the homebuying process.
Many baby boomers live in “time capsules” that need renovations to age in place. Home improvement services company Leaf Home and research company Morning Consult found more than half of surveyed baby boomers will stay in their homes as they age
January 23, 2024, 12:48 pm By Chris Clow
Fifty-five percent of surveyed baby boomers plan to remain in their existing homes as they age, but less than a quarter of those surveyed have any plans to renovate their homes to more safely and easily accommodate natural changes that come with aging.
This is according to a new report from home improvement services company Leaf Home and market research firm Morning Consult, which enlisted responses from 1,001 baby boomer homeowners (aged 59–77) and 1,001 millennials (aged 27–42) in late December 2023 and early January 2024.
The report describes homes owned by baby boomers as “time capsules,” since most of the surveyed boomer cohort (73%) said they have lived in their homes for 11 years or more. This is combined with the finding that “over half of their homes were built in 1980 or earlier with many never investing in renovations,” according to the results.
For millennials and younger generations who could eventually purchase these homes in the future, this creates a “looming underinvestment crisis that promises a future of deferred maintenance for their millennial inheritors,” the report said.
But for those who are aging in place in these homes today, there is also a notable deficit of renovations and added safety features, which could prove problematic for those who will naturally develop vision, mobility or cognitive impairments as time progresses, the report said.
Another recent report found that the current housing inventory is ill-equipped to facilitate aging in place safely for older Americans.
Just 24% of baby boomers are preparing their homes for aging, and even fewer are adding other safety features. Roughly 75% of baby boomer respondents report that they “have never added safety or accessibility features in their homes,” while 81% of the cohort report planning to leave an inheritance of some kind when they pass away.
Roughly half of millennial respondents (51%) expect to receive no inheritance.
“The housing market is caught in a generational tug-of-war. Boomers will soon face aging-in-place hurdles, while millennials will face the surprise of homes in need of major upgrades,” said Jon Bostock, CEO of Leaf Home, in a statement accompanying the report.
“With an aging and ignored inventory of homes available in the next decade, we may see a crisis that will overwhelm the home improvement industry and strain the budgets of inheriting millennials, impacting the housing market,” Bostock added.
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What Happens AFTER the LastReverse Mortgage Borrower Passes Away?Version En Espanol Click aqui
This question is paramount in the mind of many Homeowners that have or are planning to do a Reverse Mortgage on their homes, as well as with their heirs. NONE of the generalized information provided here is to be construed as legal advice, I AM NOT AN ATTORNEY.For the purpose of this writing, I will refer ONLY to the US Congress created, HUD regulated, FHA Insured "Home Equity Conversion Mortgage" - H.E.C.M. Reverse Mortgage. It is the only one available today and the most numerous one. There were several "propietary" Reverse Mortgages which might have different set of terms and conditions. You should consult with a competent attorney to determine which type you have.
Let's get one thing clear, the HECM Reverse Mortgage was created to help the Senior Homeowner, nobody else. Period. The Borrower owns the property, but Lender has some rights given by the mortgage like in any other type of mortgage. Neither the Lender nor the Government own or want the property. Period.
As a Senior with a HECM Reverse Mortgage on my home, and a Reverse Mortgage Professional Loan Originator since 2005, I can vouch for the fact that it has helped many thousands of Seniors. For MANY, including me, it has been a blessing.
What happens when the LAST Borrower passes away: By the terms of most loans, whether traditional or HECM, at death the loan becomes immediately due and payable. The Borrower no longer exists. Lenders subscribe to services which notify them of the death of a Borrower. The Estate should notify Lender in writing as soon as possible.
Lenders will send a “harsh” letter notifying that the loan is “due and payable” immediately and giving the Estate 30 days to decide how they are going to pay the debt. The Estate must answer within those 30 days and notify their intentions. If no answer is given, Lender will initiate Foreclosure proceedings. Please do not delay in answering.However, HUD Rules generally allow for a "reasonable" amount of time, not to exceed one (1) year (6 months and maybe UP TO 2 additional 3 months extensions if considered necessary) to pay the debt. In other words, heirs have UP TO a year to pay off the balance due as described above. Heirs must show they are doing "DUE DILLIGENCE" to pay-off the loan (refinancing, Listing for sale with a REALTOR, etc…). During that time, the estate should communicate and cooperate constantly with the Loan Servicer and seek their help and guidance. Most will try to help you if you do.
If balance due is not paid within the time allowed (up to 1 year) the Lender will initiate Foreclosure action and the property could be lost. If the estate does not cooperate and communicate, Lender does not have to wait UP TO one year to initiate the foreclosure action.Normally, any monthly advances that the LAST Borrower was receiving will stop or any unused Creditline funds will cease to be available. Consult with the Loan Servicer that sends the monthly Statements.Please note that interest, Mortgage Insurance premiums, and service fees (if any) continue to accrue until the loan is paid in full. Property Taxes, insurance, and maintenance fees (if any) must be paid during this period and the property maintained in good condition to avoid causing initiation of foreclosure proceedings. The Estate might be able to use a Tax Deduction for interest charges paid when the loan is paid off completely.Now, the HECM Reverse Mortgage is a Non-Recourse loan. In simple terms it means that the Lender (Mortgagee) CAN NOT collect one penny more than "the lesser of the balance due or the value of the home", either from the Borrower in life, or from the Estate. Not a penny more.
Let’s see some examples to make this clear.Example 1): Property Sold or refinanced or loan paid off.Home Value: $300,000Loan Balance due: $200,000Remaining Equity: $100,000 This Equity belongs to Homeowner in life or to estate.
Example 2): Property "UNDERWATER"Home Value: $300,000Loan Balance due: $350,000Shortfall: ($ 50,000) This amount can not be recovered from Borrower or from Estate.The Homeowner paid a FHA required Mortgage Insurance Premium (MIP) at closing and monthly. The Mortgage Insurance compensates the Lender for this shortfall once the property is foreclosed and sold, sold in a Short Sale, or "given" to the Lender In a "deed-in-lieu-of-foreclosure" arrangement and sold. The Lender can not, repeat, CAN NOT, recover this amount from the Borrower or the heirs.
The amount owed, will depend on several factors:(1) how many years ago the Reverse Mortgage was done.(2) the amount of loan proceeds advanced to the Borrower.(3) Plan chosen and Interest Rate of the loan.The increase or decrease in value of the property does not affect the balance due. However, it does affects whether the balance due will be smaller or greater than the value of the home.If the value of the Property is less than the balance due on the loan, the property might be sold in a "Arms Length Transaction" to a Non-Related buyer for the Lesser Of the Mortgage Balance or 95% of the Appraised Value. Heirs might be able to keep the property by paying the Lesser of the Mortgage Balance or 95% of the Appraised Value.
Spousal Rights (Non-Borrowing spouses): If a surviving non-borrowing spouse was removed from Title due to being younger than 62 years of age, or any other reason, at time of closing, there are very complicated rules, depending on the date of closing. Surviving Spouses and heirs should consult a competent attorney to interpret their Rights and options.It is important to know whether the Loan closed before or after August 4th, 2014 as on that date, Rules changed and, depending on the closing date, different Rules may apply to the Non-Borrowing Spouse. As of May 6, 2021 HUD favorably changed the Rules. For an explanation, Click Here: Florida Reverse Mortgages Blog – Juan Luis Rodriguez-Kohly, Great Florida Lending, Inc – Blog, Blogging (happyseniorhomeowners.com)
To view the Official Document CLICK HERE 2021-11hsgml.pdf (hud.gov)Non-Borrowing Occupant: Please be aware that any non-borrowing occupant MUST vacate the property opportunely. Tenants living the property might have certain rights and protections under State Law and may need to consult competent legal counsel.
I have tried to simplify the process to make it easier to understand. I sincerely hope that it is helpful. Again, this should not be construed to be legal advice, I am not an Attorney. If you have any questions, you should consult competent legal counsel.
*******Note: The information herein provided is for informational purposes only and It is subject to error and/or omissions and to change without prior notice.
The Danger of Mandatory Mortgage Payments in Retirement
by Shannon HicksDecember 18, 2023
While the media and regulators have scrutinized if reverse mortgages are suitable for older homeowners we see little if any interest in loan officers who promoted cash-out refinances or home equity lines of credit (HELOCs) to homeowners on a fixed income with little consideration of the increased financial burden of monthly payments or a payment shock when a HELOC resets.
A recent CBS News article advises before tapping into home equity seniors should consider these three questions: how much equity is available, how payment will be covered each month, and alternative sources of funds.
To the credit of CBS, their second question is one of the most consequential considerations that any older homeowner on a fixed income should weigh before incurring a potentially larger monthly mortgage payment. All of which brings to mind a recent webinar replay I watched.
Last week I watched a replay of KW Landmark Keller Williams Realty’s webinar ‘Ask the Pros: Is it true what they say about reverse mortgages?’. One comment during the session caught my attention. Bill Donofrio- a reverse mortgage consultant with Longbridge Financial was addressing the so-called ‘danger’ of reverse mortgages. He said, “So you talk about risk and danger. You know what’s dangerous? Having a mandatory mortgage payment. With a reverse mortgage you can make a payment whenever you want. It’s just not mandatory”.
Consider this. There’s a reason that homeowners plan and look forward to paying off their mortgage by the time they retire. It removes the burden of a monthly house payment and dramatically reduces their monthly obligations. But there’s another generally unspoken benefit: the homeowners eliminate the risk of foreclosure for nonpayment. A financial shock in retirement could impair a homeowner’s ability to stay current on their mortgage which could quickly trigger a foreclosure after three missed payments.
A 2018 survey by American Financing found 44 percent of Americans between the ages of 60 and 70 will have a mortgage when they retire and 17 percent of those surveyed don’t expect they’ll ever be able to pay it off. Thirty-two percent of homeowners predicted they would be paying their mortgage for at least another eight years. Only 20 percent of homeowners surveyed expected to pay off their mortgage within one year of retirement The Washington Post reported.
According to a 2017 Fannie Mae report, today’s older Baby Boomers born between 1946 and 1951 are more likely to carry mortgage debt into retirement than previous generations.
The calculus of retirement leaves little margin for error. Retirees with substantial monthly expenses including a sizable mortgage payment are often unable to absorb the cost of a financial shock such as unexpected medical expenses, long-term care, the loss of a deceased spouse’s income, or the resulting reduction in Social Security benefits.
Even more, what’s disheartening is those retirees with no mortgage balance yet are unable to qualify for a home equity loan when funds are most needed for unexpected expenses. Yes, for most having a mandatory mortgage payment in retirement is a risky proposition. So also is the inability to access home equity when it may be needed most.
Why a Reverse Mortgage? For a Senior Homeowner, with fixed income, a Reverse Mortgage could be a blessing. It has been for me, as well as for millions of Americans retirees. If you have a mortgage, it might eliminate the monthly payments, leaving that money in your pocket. I could give you Tax Free funds to enhance your retirement. Get the information from a Professional that has a Reverse Mortgage in his home
Call or email today or use the form provided below
The next time someone tells you inflation’s coming down? Ask, from what?!
Sure, inflation has tapered since its 9.1% peak in June 2022, but Americans are still grappling with significantly higher prices of goods and services.
Even with modest pay hikes, workers are finding it tough to keep up with inflation’s pace. It’s no wonder—overall inflation stands 13% higher than in April 2021.
Retirees relying on fixed incomes are feeling the pinch, left with little choice but to cut back on essentials or seek extra income sources. Consider this: an average single retired worker getting $1,847 monthly will only see a $59 bump in 2024, not factoring in the $9.80 increase in Medicare Part B premiums according to the Social Security Administration.
This is prompting older homeowners to ponder how long their savings can weather inflation’s impact. Reverse mortgage professionals would be remiss not to address the real-life consequences of soaring prices with potential borrowers.
Recent reports, like Bloomberg’s, indicate it now takes $119.27 to buy what cost much less in early 2020—a 19% hike in daily expenses. CNBC’s analysis of Labor Statistics data from April echoes this trend, highlighting how everyday items are significantly pricier compared to just two years ago. It’s not just the year-over-year inflation pace; it’s the current cost that truly matters.
Despite expectations of some prices like homes and vehicles cooling off, most goods and services are unlikely to revert to pre-pandemic rates. In fact, most will become the new benchmark.
Though inflation’s pace has slowed, its impact on wallets remains substantial. Between April 2021 and 2023, overall prices soared by 13%.
The grocery store bill tells a compelling story—food costs have surged by 25% since January 2020.
Housing expenses have shot up due to surging home prices and mortgage rates. Average monthly mortgages have spiked by 40-60%, and rent for single or multi-family units surged by 28% since 2020, according to Zillow’s Rent Index.
Utilities, too, have become more expensive. Residential electricity bills in California surged by a staggering 51% from August 2019 to August 2023.
Stopping by your local fast food restaurant has become much more expensive—fast food prices have shot up significantly. Burgers cost 23% more, pizzas 17% more, and chicken dishes take 32% more from your wallet.
While many working Americans live paycheck to paycheck, seniors understand the value of saving. But inflation is chipping away at their nest eggs, a concerning trend as savings rates mirror the lows before the 2008 Financial Crisis.
In conclusion, discussing inflation is crucial for potential reverse mortgage borrowers. It’s the undeniable elephant in the room that demands attention.
For a No Cost or Obligation Quote on a Reverse Mortgage please call 786-262-6486 or email firstname.lastname@example.org fill out and send the Forma provided below.
Homeowner’s Insurance Premiums are Surging in These Five States by Shannon Hicks September 19, 2023
Money.com reports these five states saw the largest increase in premiums from May 2021 to May 2023.
The spike in premiums is attributed to a perfect storm of a spike in natural disasters, record insurance losses, and higher construction prices.
Natural disasters such as hurricanes have long-lasting impacts. For example, in the wake of Florida’s most destructive hurricanes, insurers began hiking homeowners insurance premiums. The same can be said for Colorado, Idaho, and California. In the wake of the disastrous and deadly Maui Fire island residents will soon face the same challenge.
As a result of the surging cost of premiums, many older homeowners without a mortgage on their home have chosen to forego homeowners insurance altogether. The Insurance Information Institute reports that 5% more homeowners have not purchased homeowners insurance than just two years ago.
Many homeowners are very likely house-rich but cash-poor. Even worse, their greatest source of wealth is now at risk of being wiped out. One disaster could push an older homeowner into complete financial ruin or possible homelessness.
Have you seen an increase in homeowners insurance policy premiums? A reverse mortgage could provide the means needed to purchase a policy and protect what’s likely your largest asset.
The homeowner wins by protecting their home. but most importantly, helps eliminate the risk of a homeowner losing their home to a disaster or fire.
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Inquire on how a Reverse Mortgage can help you cover your insurance costs, protect your home and give you financial peace of mind. It did to me and millions of other Seniors.
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Get a free, No Obligation Estimate of the Funds you could receive from a Reverse Mortgage. Call me today at 786-262-6486 or email me at email@example.com or Click on the link below
Quick Reverse Mortgage Quote Form (seniorreverseflorida.com)
Hurricane Season is upon us. You Must be Ready!!!
FL Dept of Elder Affairs 2021 Disaster Resource Guide for Older Adults (elderaffairs.org)
CALL ME TODAY 786-262-6486
The "Grey" Divorce Settlement andThe Reverse Mortgage
Sadly, today many Senior Homeowners are deciding to get divorced. it is a phenomenon called "Grey Divorce"
One of the biggest hurdles the couple faces is what to do with the home they have shared for so many years.
What is Elder abuse?
How big is the problem?
Elder abuse is a serious problem in the United States. The available information is an underestimate of the problem because the number of nonfatal injuries is limited to older adults who are treated in emergency departments. The information doesn’t include those treated by other providers or those that do not need or do not seek treatment. Additionally, many cases are not reported because elders are afraid or unable to tell police, friends, or family about the violence. Victims have to decide whether to tell someone they are being hurt or continue being abused by someone they depend upon or care for deeply.
Elder abuse is common. Abuse, including neglect and exploitation, is experienced by about 1 in 10 people aged 60 and older who live at home. From 2002 to 2016, more than 643,000 older adults were treated in the emergency department for nonfatal assaults and over 19,000 homicides occurred.
Some groups have higher rates of abuse than others. Compared with women, men had higher rates of both nonfatal assaults and homicides. The rate for nonfatal assaults increased more than 75% among men (2002–2016) and more than 35% among women (2007–2016). The estimated homicide rate for men increased 7% from 2010 to 2016. Compared to non-Hispanic Whites, non-Hispanic Black or African American persons, non-Hispanic American Indian/Alaskan Natives, and Hispanic or Latino persons have higher homicide rates (2002–2016).
Overall and firearm-specific older adult homicide rates increased between 2014 and 2017. Of the 6188 victims, 62% were male. The perpetrator was an intimate partner in 39% of firearm homicides and 12% of non-firearm homicides. Common contexts of firearm homicides were familial/intimate partner problems, robbery/burglary, argument, and illness-related (e.g. the homicide was perpetrated to end the suffering of an ill victim, both victim and perpetrator had an illness, or the perpetrator had a mental illness).
What are the consequences?
Elder abuse can have several physical and emotional effects on an older adult. Victims are fearful and anxious. They may have problems with trust and be wary of others. Many victims suffer physical injuries. Some are minor, like cuts, scratches, bruises, and welts. Others are more serious and can cause lasting disabilities. These include head injuries, broken bones, constant physical pain, and soreness. Physical injuries can also lead to premature death and make existing health problems worse.
How can we prevent elder abuse?
There are a number of factors that may increase or decrease the risk of perpetrating and/or experiencing elder abuse. To prevent elder abuse, we must understand and address the factors that put people at risk for or protect them from violence.
The older adult population is growing faster in the U.S. than are younger populations. Many older adults require care and are vulnerable to violence perpetrated by a caregiver or someone they trust. More research is needed to uncover the causes for, and solutions to, violence against older adults.
*****Download 124 pages Booklet by the CDC https://www.cdc.gov/violenceprevention/pdf/EA_Book_Revised_2016.pdf
How to Report Elder Abuse,: 1-800-962-2873
How to Report Elder Abuse, Neglect, and Exploitation. To report by phone – call Florida Abuse Hotline at 1-800-96-ABUSE (1-800-962-2873). Press 2 to report suspected abuse, neglect or exploitation of a vulnerable adult. This toll free number is available 24/7.
Interested about your home's value?
This site uses data from the "FreddieMac House Price Index" (FMHPI) to estimate the value of your home by taking into account the appreciation rate for your region.
Of course, the estimated figure generated here should not be taken as your home's actual or appraised value. But it should give you a good idea of the fluctuations and trends in your market.
A Professional Conventional or FHA Appraisal would be required if you decide to apply for a loan.
Let me help with all your Home Financing needs in Florida, including determining an estimated home value.
To Find out If you have questions regarding Home Refinancing or Financing the Purchase of your new Home in Florida, call me at 786-262-6486 or send me an
e-mail (click here)
Rosh Hashanah is a Jewish holiday that marks the beginning of the Jewish New Year. It is also known as “The Head of the Year” as it is considered the holiest days in Judaism.
Please Celebrate with our Jewish Brothers and Sisters such a Happy Day!
Happy Rosh Hashana!
Rosh Hashaná es una festividad de los Judios que marca el inicio del Año Nuevo Judio. Tambien se le conoce como “La Cabeza del Año” y es considerado como el día mas sagrado en el Judaismo.
¡Por favor Celebremos juntos a nuestros Hermanos Judios tan Feliz día!
¡Feliz Rosh Hashaná!
Recently I took an AARP “Smart Driver” 6 hours Course which I consider must
be a “Must Take” course for any Senior driver.
I urge any responsible Senior drivers to look into this course, not only
for the valuable information about safe driving habits, Laws, dangers, etc…,
but you also might get a sizable premium discount from your auto Insurance premium.
These courses are offered in English ( Español en Dade County)
throughout every county in the State of
You get a 123 pages guide for future reference and home study.
Check at http://AARP.org or toll free at 1-866-850-8317
You do not have to be a Member to Register.
12 Retirement Questions Financial Advisors Hear Most Often
By Rudri Bhatt Patel Published Fri, Mar 3 2023
Figuring out if your finances are on track for retirement can be tricky. If you have retirement questions, you’re probably not alone. We asked financial advisors what questions about retirement finances their clients ask the most, and here’s what they said.
You may find multiple answers to a question you’ve been wondering about here. But even if you do, it’s important to remember that every financial situation is different. Many people may have the same question, but the answer will differ for each. These answers can help put you on the right track, but make sure you consult with a financial advisor of your own before making any major financial decisions.
Looking at a person’s financial plan will determine the best course of action for their mortgage, says Austin L. Nold, CEO of the Austin, Texas-based financial planning investment firm Nold Bryant. Paying off the mortgage, sometimes, isn’t the best option, says Nold, “a large withdrawal could cause unnecessary taxes or an unnecessary drawdown on assets.”
If a client’s plan looks great either way, he thinks it comes down to personal choice. So, he shows them the short-and-long-term financial impact. “One consideration people need to have in the current inflationary environment is that with rapidly rising interest rates. Sometimes there may be safe options to get higher returns than their mortgage, and they may not be able to borrow money again at that low a rate anytime soon.”
Retirees may collect Social Security as early as 62. But some may want to defer payments until later. Brendon Dunuwila, a financial advisor of the Fayetteville, New York firm Dunuwila Wealth Management, says the latest an individual can defer Social Security payments is age 70. There is an advantage to this strategy.
“The longer you wait to elect, the larger your check will be. While most Americans elect to take their Social Security early, most financial advisors would encourage an individual to wait until age 70 if financially possible,” Dunuwila says.
Many clients feel overwhelmed when they need to start using these nest eggs, says David Edmisten, a Phoenix, Arizona, certified planner and founder of Next Phase Financial Planning.
“With the different types of accounts many retirees have, there’s potential for penalties and higher taxes for incorrect withdrawals,” he says.
It can be difficult for new retirees to know how to shift investments to create a reliable retirement income. So Edmisten says to put a structure in place that dictates appropriate amounts of cash, income investments, and longer-term growth assets.
“This can give them the confidence to spend as they need in retirement without worrying about current market conditions,” Edmisten says. It’s important to understand all aspects of a financial plan to make withdrawals and investment decisions as tax-efficient as possible, he adds.
Nold finds many people don’t take advantage of all the tax savings opportunities that different investment options may provide. For example, a business owner who doesn’t consider a retirement plan or a SEP IRA is missing out on an important tax-saving vehicle. Another example is someone who could benefit by contributing to a Roth IRA via a back-door Roth contribution but doesn’t. He thinks “people often underestimate the long-term tax savings of making small changes during their working years.” He also observes that people make investments that aren’t tax efficient, for instance, some mutual funds that may be subject to high capital gains.
The universal answer to this question is that it depends. Boris Castillo, a San Diego, California, financial advisor for Cuso Financial Services, says to ask yourself how much passive income you would need to walk away from your work today.
To determine that amount, he recommends totaling your monthly expenses. Remove expenses that will eventually sunset out, like a mortgage or a car loan. Then look at them with the following metrics:
To answer this question, Chicago-based financial advisor and founder of SIS Financial Group, Cynthia Pruemm, asks clients to note what is important to them in retirement. The range of objectives varies from “whether they want to leave a legacy, or do they want to contribute to their grandchildren’s 529 college plan,” she says.
Another concern she hears is that cognitive issues may run in their family. These people are concerned about long-term care or want to retire before they become eligible for Medicare. “Whatever their concerns are, we complete a retirement analysis and offer them solutions to the gaps in their plan,” Pruemm says.
The short answer is no. Nayan Ranchod, a Scottsdale, Arizona, financial planner with Silver Lining Wealth Advisors, says people should not worry about market volatility, especially if their portfolio is based on financial planning that reflects their long-term goals. A carefully thought-out portfolio already takes into consideration the fluctuations of the market.
“A market downturn is the time to reassess what’s really important in your life and adjust the portfolio and expenses accordingly to make sure we use this as an opportunity for the next growth cycle,” Ranchod says. In his opinion, you can use the market to set clear future goals.
“As a fiduciary, an advisor can only give assurances that your interests go ahead of any other entities (other than the law),” says Castillo. However, he cautions that this says nothing about the investment strategy itself. For example, in the last few years, “many have taken risks in their portfolios that they ideally wouldn’t take. The economic environment almost dictated this since the US experienced historically low-interest rates persistently. There was little yield to be had anywhere else but in equities,” Castillo says.
With the recent shift in interest rates and asset valuations, many are finding out the hard way that they took on more risk than anticipated. “This is why we always run scenario analysis on any investment strategy. Knowing how far or fast an investment’s returns can change can benefit an investor since it can manage their expectations. But always keep in mind that the advisor doesn’t control the markets,” adds Castillo.
It can be easy to look at a portfolio as a snapshot, but in reality, they change with the market. Retirees need to focus on an overall financial strategy instead of reacting to the fluctuations in the market, says Jennifer Lee, a financial advisor in Sarasota, Florida, and founder of the advisory firm, Modern Wealth. Lee believes people have been conditioned to think that everything will bounce back immediately. But that isn’t necessarily the case. Clients need to be clear on their ability to tolerate risk and to stay the course when things get bumpy.
“Review your timeline to retirement or a particular goal, and ask, ‘Can I sustain the type of investments I have?’ and ‘Is my portfolio positioned to provide me with adequate income in retirement?’ In a down market, we do not want to have to be reactive and reassess risk.” says Lee.
Most financial advisors think retirees should give advance thought to long-term care. Waiting may mean settling on an option that isn’t ideal. “This is a more complicated question as, for some clients, it can make sense to self-fund for this risk. For others, it is better to work closely with an estate planning attorney to discuss asset protection and Medicaid options,” Dunuwila says.
Castillo believes an index fund is a nice vehicle for low-cost market exposure. “However, it doesn’t ask the most fundamental question any investor should ask themselves: ‘How much risk do I really need?’ Without a financial plan, most investors are flying blind and following the crowd, leading them to make all types of mistakes. Your financial situation is as unique as your fingerprint: many look similar, but no two are identical. The most efficient method is taking on the appropriate risk that fits your overall goals and financial situation. An index fund may result in too much risk, or, in some cases, not enough,” Castillo says.
Financial advisors don’t have a standard cost or fee, but the key is to ask this question early in the process. “Every investment strategy will have its costs or fees. Some advisors charge flat rates for advice, some a percentage of assets under management, or some traditional commissions,” Castillo says. He believes that an investor needs to determine what approach is the most appealing to them.
“Pragmatically, the most efficient method to begin the investment journey (since longevity and discipline are the keys to the most rewarding outcomes of most investment strategies) is to know yourself, know how you’re most comfortable dealing with a professional. The markets will give you enough opportunities to second-guess any strategy over time, so why compound the uncertainty by utilizing an approach you’re not comfortable with?” Castillo says.
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.
MY Notes: A Reverse mortgage can be a blessing for may Retirees. I can vouch for that. It could help you achieve a financial worry-free retirement,
Call 786-262-6486 or email RodKohly@gmail.com today to get more Information about the funds you can get from a Reverse Mortgage
If you closed your FHA Insured Reverse Mortgage prior to April 26, 2014 and had to take your Spouse off Title Due to being younger than the required 62 years of age, now we might be able to Refinance it, include your Spouse on the Loan and on Title, and maybe get you additional Funds with one of our Proprietary Reverse Mortgage Programs.
Send me the last Statement from your Reverse Mortgage as well as Name and Date of Birth of your Spouse.
RodKohly@gmail.com Call me today!!! 786-262-6486
Through our Proprietary JUMBO 55 Reverse Mortgage Program, We can offer Owners of 1 to 4 Families and CONDOS for a Maximum Loan of Up To $4,000,000.
The FHA HECM Reverse Mortgage Fabulous Growing CreditLine!!!
Many Seniors are not aware of one of the most attractive and valuable advantages of this Program and is insured for the life of the Loan. The Lender can NOT eliminate or change it!!!
Available only on the Adjustable Rate Plans. The Program allows you to withdraw up to 60% of the Loan amount at Closing, including closing Costs and any existing Mortgage or lien.
The Balance of the Loan Amount is deposited in a Growing CreditLine and will be available for withdrawal after one (1) Year. During the time the funds are in that Creditline, they are growing Tax Free at a Growth rate of .50% higher than the Interest rate charged for the funds owed that you withdrew at Closing. (ie: if the Interest rate for the funds owed is 2.415% annual, for one period, the Growth Rate for the funds in the growing Creditline will be 2.951% for that same period). Tax Free!!!
Any funds available at Closing, not withdrawn will be deposited in the growing Creditline and will be available for withdrawal within the 1st year.
The funds deposited in the growing Creditline are not owed nor is interest charged on them, until withdrawn. They are a Growing Tax Free Cash Reserve!!!
Another fabulous advantage is that If at anytime you decide to make a payment (x$) to lower the debt, the debt will be decreased by (x$) and, the same amount of (x$) will be credited to the growing Creditline and be available immediately for withdrawal if needed.
Don’t waste the opportunity to change your life with a Reverse Mortgage. We offer both FHA Insured as well as Proprietary Programs up to a maximum Loan amount of $4,000,000 for houses, townhouses and Condos!
Note: The information is provided for informational purposes only. It is subject to errors and /or omissions and to change without prior notice.
Fabulous Growing CreditLine!!!
By Miranda Marquit
Published Mon, Aug 14 2023
Inheriting a house can offer a variety of choices in making use of a valuable asset. For example, you can sell the home and collect the resulting cash as a windfall, use the property for rental income, or live in the house and potentially reduce your overall living costs.
As you decide what to do with an inherited home, there are a few things to consider. Here’s what you need to know.
Laws are different in each state, but, in general, if you inherit a home, you will need to go through some type of legal process. The executor of the will needs to be consulted, and there might be probate issues to resolve.
if you inherit a house, it won’t actually be yours until all the legal formalities are complete and your name is on the title.
Some of the issues the executor and probate will address include:
Consider speaking with an estate planning specialist or other professional to help you navigate the situation and review your options. You may also need to consider a mediator if you have co-inheritors who disagree with you about the best way to handle the situation.
Once you’ve established your right to the home and have your name on the title, you can start trying to figure out what to do next. You’ll need to consider the impact of owning this home on your personal finances. Considerations you’ll need to make include:
Regarding what you’ll do with the property, you have three options:
If you have a family member as a co-inheritor, you might also need to make other decisions. Perhaps they want to move in, and you need to make an arrangement. The easiest solution is to sell the home and split the net proceeds (after taxes and other costs have been paid). However, if you want to keep the home and don’t want other co-inheritors involved, you might need to buy them out.
Inheriting a house can be a way to improve your finances and make the most of your money. However, before you decide to accept the inheritance, or decide what to do with the house, make sure you consider your situation and needs to make a choice that makes sense for you financially.
???Call 786-262-6486 or email RodKohly@gmail.com today to get more Information about the funds you can get from a Reverse Mortgage
What Will the Future Bring?
Many Seniors, worried, have recognized the uncertainty that they face in their Golden years.
1) Will my retirement income be enough to live the rest of my life with sufficient dignity? 2) Where am I going to get enough income to maintain a satisfactory standard of living?
3) Will I be able to maintain my financial Independence for much more time?
4) Will I have to become a financial burden to my children?
5) Will my children be able to help me if I need it?
6) Will I have to sell my beloved home?
7) Where do I move to? How much will it cost me? a) 6% REALTOR Comissión: $_________
b) Doc Stamps Tax For Sale of Property: $______
c) Cost of Moving: $__________
8) and, a thousand other questions…
Watch a Short Presentation of what the Reverse Mortgage is:
NO Tax Returns Needed!!! For Purchase or Refinance!!!
Special Financing Programs Purchase or Refinance
Programas Especiales de Financiamiento Compra o Refinanciamiento
JUMBO REVERSE MORTGAGE 55 Plus* GREAT NEWS!!!
We are now offering a new Propietary JUMBO Reverse Mortgage Available for Refinance and Purchase. Owner Occupied:1 to 2 families Residences, Townhomes, and CONDOS.
This, immediately, opens the possibility for many Hi-Value Homeowners to obtain a Reverse Mortgage for a larger Proceeds than with the FHA Reverse Mortgage. If you live in a Hi-Value Condo or Home and have not obtained a Reverse Mortgage yet, call me. See if this Reverse Mortgage could help you. Characteristics*: 1) Values from the $800,000’s up to $4,000,000 maximum loan amount.* Characteristics (cont.)* 2) Condo Projects NO FHA approval*. 3) No Mortgage Insurance required 4) 620 Minimum Credit Score 5) Minimum Age 55 years old. (all owners) (*other terms and Conditions may apply. Subject to changes without prior notice, errors and/or omissions. Condo's Lender approval required).
When this Article was written back in 2021, inflation had not reached the 11% average that it was in May 2022, Gas Prices were not in the $4.95-$10.00/gal range, groceries were not as high as they are today, and interest rates had not risen to the 5% range they are today (and the Fed announced 2 to 4 more increases this year). If you are in a fixed income, this situation is really harming you. If you are a Senior it is even worse. I call it "The Senior Silent Killer",
My Social Security Benefits went up 6.5% in January 2022 thanks to the COLA, My Medicare Premium went up 14.5%. So if inflation is an average of 8.5% and increasing, how can anyone make ends meet???Senior Homeowners with at least 50% Equity in their homes can apply for a Reverse Mortgage and eliminate Monthly P&I Mortgage Payments and even get Tax Free Cash to help them out.
Don't wait until it is too late. You deserve to live the remaining time of your Life without financial worries!!!Call me at 786-262-6486 or email at RodKohly@gmail.com or use the form below for a confidential, no cost or obligation estimate of how much could you get from a Reverse Mortgage.
Read More at: https://www.happyseniorhomeowners.com/EnglishReverse
or in Español: https://www.happyseniorhomeowners.com/ESPANOLREVERTIDA
by Robert Intelisano August 3, 2021
The Google definition of inflation is: “A general increase in prices and fall in the purchasing value of money over time. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.”
An example of inflation is the cost to cross the Marine Parkway-Gil Hodges Memorial Bridge. When the bridge opened on July 3rd, 1937, the cost to cross the bridge was between 10-15 cents, depending on the type of vehicle. The current cost is $5.09 by mail and $2.45 by E-Z Pass.
The Federal Reserve wants to keep inflation under the 2% benchmark. Right now, inflation is running around 3% which is in the danger zone. As per Barron’s, the FOMC (Federal Open Market Committee) released minutes from its June monetary policy meeting. Fed officials signaled that interest rates would rise sooner and faster than Wall Street expected prior to the meeting, as inflation is rising at its fastest pace since 2008.
What does this all mean? This means that if you are on a fixed income, your money will not go as far as it would during inflationary times. This also means, if you have investments and/or money in the bank that is “netting after-tax” less than 3%, you are losing money (purchasing power). These are important barometers that few people are paying attention to right now.
People have been cooped up (myself included) during the height of Covid-19 and many persons now have more spendable income. A combination of inflation, the Suez Canal blockage, and higher demand for travel has skyrocketed travel costs in the past month. Hotel costs in Miami Beach have risen 50% since the last week in June. Rental cars are up 110% this year and are 70% higher since the pre-pandemic in 2019. Oil prices could soon hit $100/barrel, which will also spike gas prices.
There are options where one can position assets to fight inflation or at least break even, as interest rates are likely to rise over the next 12-18 months.
Now is the time to have a short conversation about inflation. How is it impacting them? Does it change their retirement plans? What financial concerns do they have as a result? Inflation is not a selling point, but it’s certainly a reality. One where a reverse mortgage could potentially help.
The continued surge in housing prices has confounded economists, housing experts, and investors alike. Many believed that the end of mortgage forbearances or the sudden closure of Zillow’s iBuyer program was an omen of an impending crash in housing values. Next was the expectation that interest rate hikes by the Federal Reserve would at least cool the market. However, today home values continue to appreciate even after the Fed announced a series of interest rate hikes in the effort to stem inflation.
With home prices rising six times as fast as personal income it becomes clear that…
today’s housing market is both artificial and unsustainable. While the frenzy will eventually subside it won’t stop this spring which marks the height of the homebuying season.
Today homeowners are equity-rich thanks to a massive shortage of housing inventory and asset inflation as a result of the Fed’s endless money printing and near-zero interest rates. Yet there’s one group of homeowners stand to reap the rewards if they choose to secure a portion of their home’s new-found ‘equity’; Seniors.
Even if the central bank increased rates during each of its meetings this year, it’s unlikely that the resulting change in the 10-year Constant Maturity Treasury (CMT) swap rate would disqualify most thanks to the run-up in home values. Today the 10-year CMT stands at 2.0% which nearly mirrors the index’s rate in December 2019 before the outbreak of the Covid-19 pandemic.
However, should the Fed be forced to take more drastic measures to curb inflation, rate increases could escalate sufficiently to offset the recent gains in home prices with higher expected interest rates lessening available loan proceeds for reverse mortgage applicants.
Don’t sneeze as spring fever maintains today’s absurd home prices. Just like any season, this too will eventually pass, and with that passing the waning of a unique opportunity for older homeowners seeking to stop making mortgage payments.
See Reverse Mortgage Information
Recently I posted an article on the effects of the high inflation rates that we are all suffering on the Reverse Mortgage Rates and how it would lower the Funds that You Would Receive!!!
(see article below this one)
This new article describes how inflation WILL lower the effect of the funds you receive from Social Security regardless of the COLA increase.
The Center for Retirement Research at Boston College
THE IMPACT OF INFLATION ON SOCIAL SECURITY BENEFITS
By Alicia H. Munnell and Patrick Hubbard*
This fall, the U.S. Social Security Administration is likely to announce that benefits will be increased by around 6 percent beginning January 1, 2022. This cost-of-living-adjustment (COLA), which would be the largest in 40 years, is an important reminder that keeping pace with inflation is one of the attributes that makes Social Security benefits such a unique source of retirement income. A spurt in inflation, however, affects two other factors that determine the net amount that retirees receive from Social Security. The first is the Medicare premiums for Part B, which are deducted automatically from Social Security benefits. To the extent that premiums rise faster than the COLA, the net benefit will not keep pace with inflation. The second issue pertains to taxation under the personal income tax. Because taxes are levied on Social Security benefits only for households with income above certain thresholds ($25,000 for single taxpayers and $32,000 for joint returns) and the thresholds are not adjusted for wage growth or inflation, rising benefit levels subject more benefits to taxation – again reducing the net benefit… Continued:
Download the entire Brief at:
With a FHA Insured Reverse Mortgage You Can Prevent The Effect of Inflation on Your Daily Life. Call Me Today at
The Federal Reserve Board has Increased the Interest Rate by a MASSIVE 0.750%. This translates into a lower amount of funds you can receive from a new Reverse Mortgage or a Higher Monthly Payment for Traditional Mortgage Borrowers. This only is the 3rd increase of several announced for 2022.
If you haven’t applied for your Mortgage yet, don’t keep waiting. Call me today at 786-262-6486 or send the information requested below.
We’ve all heard that "laughter is the best medicine." But who took it seriously?
All kidding aside, IS laughter really the best medicine? Could a daily dose of "ho ho ho" heal what’s wrong, or is it just a sick joke?The health benefits of laughter have been praised since biblical times, with proverbs like, "A cheerful heart is good medicine." Shakespeare wrote years later, "Merriment bars a thousand harms and lengthens life."And today, laughter therapy research and laughter yoga tend to agree.
Laughter has been found to boost your immune system, reduce pain, heal your heart, decrease stress and increase your feel-good hormones. But best of all, laughter is fun, free and has no negative side effects.The Health Benefits of Laughter TherapyMore than likely, if you go to a doctor or a shrink for some ailment, they’re not going to write a prescription that includes a good belly laugh.But "laughter therapy" is a new use-your-mind to heal-your-body approach that is growing rapidly in popularity. "And it’s as real as taking a drug," says Dr. Lee Berk, Professor of Medicine at Loma Linda University.As Norman Cousins tells us in his book, Anatomy of an Illness (As Perceived by the Patient), when he was diagnosed with a terminal disease, he was unable to move, given little hope and in constant pain.Cousins credited his recovery to a prescription for watching funny movies. With every 10 minutes of laughter, he got two hours of pain-free sleep.Years later, using movies to rate the effectiveness of laughter therapy on cardiovascular health, Dr. Michael Miller from the University of Maryland School of Medicine discovered that laughter is great for your heart.The American College of Cardiology presented his breakthrough research.Dr. Miller's team measured the blood flow from healthy participants both before and after they watched two very different films: the graphic war movie, Saving Private Ryan and the hilarious comedy, Kingpin.The blood flow differences were quite dramatic – a 35% DECREASE after the war movie and a 22% INCREASE for the comedy. Dr. Miller's conclusion? Laughter may be as good for your heart as exercise!The Health Benefits of Laughter YogaThe benefits of laughter yoga include all the benefits of laughter therapy, plus laughing yoga combines laughter with yoga breathing exercises.Laughing yoga is a body-mind approach to laughter, which means you don't need to find a way to feel happy. You "fake it until you make it" and that fake laughter soon turns into the real thing with real benefits.Here are the main health benefits of laughter therapy and laughter yoga:
Most hospitals today encourage patients to laugh. Many have TV comedy channels, comedy rooms and regular visits from clowns. As Groucho Marx said, "A clown is like an aspirin, only he works twice as fast."Turn Your Frown :-( Upside Down :-) and Start Clowning Around ;o)Studies show the perfect prescription for a long, happy life is to eat a healthy diet, exercise regularly and tune into the cosmic laugh-track.So, do the benefits of laughter prove that laughter is the BEST medicine?The answer is it doesn’t really matter. Because whether you use a laughter therapy mind-body approach or body-mind laughter yoga, if you want to feel good as often as possible, you’ll laugh every chance you get!