The “Gray Divorce” Settlement and The Reverse Mortgage
There have been an increasing number of the so called “Gray Divorce” between Senior Spouses. Seniors in the process of a Divorce Settlement should take a look at the Reverse Mortgage. Th Spouse retaining the Home could do a Reverse Mortgage, Liquidate the current mortgage or give funds for the other spouse
Now, for the More Affluent Homeowner, there is a new Proprietary Reverse Mortgage for properties up to a maximum Loan Amount $4,000,000, it will open the possibilities to the more affluent Homeowners from 55 years of age or older. (conditions apply). available for Owner Occupied, for Refinance 1 to 4 families Residences and NOW CONDOS (conditions apply). For Purchase 1 to 2 families Residences including approved CONDOS.
One of the biggest hurdles the couple faces is what to do with the home they have shared for so many years. You know the alternatives. If one of the Homeowner that wants to keep the home, qualifies, there is enough equity, and both parties agree, refinancing with a Reverse Mortgage might provide a wise, viable financial solution. As agreed, Spouse A and Spouse B and get a Decree and Property Settlement where Spouse A would do a Reverse Mortgage (if they qualify) and Pay Spouse B the agreed amount at closing. Divorce must occur prior to closing. The proceeds could:
1) Pay off the outstanding balance on the mortgage, and/or
2) Give the Homeowners funds to be distributed as per the Divorce Agreement. Spouse A would keep the home in his/her name only, without having to make any monthly Principal and Interest mortgage payments (only property taxes, insurance and any property charges and maintain it in good condition) for as long as he/she lived the home as primary residence.
Spouse B would have cash available to get on with their life, and removed from title would have no further liability for the home or the debt.
For your Clients:
ENGLISH: https://www.SeniorReverseFlorida.com/Divorcing
ESPAÑOL: https://www.SeniorReverseFlorida.com/Divorciandose
JUMBOS: https://www.SeniorReverseFlorida.com/JUMBOS
As you can see, in some cases a Reverse Mortgage might be a viable solution for some of your Senior Clients. Call or send me an email me so I can prepare a no-cost, no obligation, Confidential Estimate. Please Provide: Refinance: 1) Age (55 or older) of the Client that would keep the home: __________ 2) Estimated Value of the Home: $_____________ 3) Current Balance ALL Liens debt: $______________
4) Type of Property: [ ] Single Family, [ ] Townhouse, [ ] 2-4 Families, [ ] Condos: Building Address-Zip (Required): ________________________________________
Also, For the departing ex-Spouse B, there is the Reverse Mortgage Home Purchase Financing Program which allows a Senior Buyer 55 years of age or older, to finance the purchase with a $4,000,000 Maximum Loan Amount and not have to make Monthly P&I payments as long as they pay taxes, insurance, property charges and they live the home as principal residence.
For your Clients: https://www.SeniorReverseFlorida.com/SeniorBuyers
Español; https://www.SeniorReverseFlorida.com/CompradorSenior
Call 786-262-6486 or email at RodKohly@HomeFinancingFL.com or Click Here and Fill out The form to receive information, No cost or Obligation.
Llame hoy al 786-262-6486 o RodKohly@HomefinancingFL.com o CLICK AQUI y llene la Forma para recibir Informacion, sin costo ni compromiso.
To Request Registratio, Please fill and Submit the following Form
Home Equity: A Bird in the Hand is Better than…
by Shannon Hicks | May 28, 2025
A New Conversation About Home Equity
Since the onset of the COVID-19 pandemic, home values in the U.S. have surged. From 2020 to 2024, rural home prices rose by 23%, outpacing the 18% rise seen in urban areas. This shift was fueled by a “race for space” as families sought out larger homes and greener surroundings. According to the Case-Shiller National Home Price Index, overall U.S. home prices have jumped approximately 47.1% since early 2020—eclipsing even the housing booms of the 1990s and the early 2000s before the Great Recession.
As a result, most homeowners have accumulated significant equity. In fact, as of Q4 2024, Americans aged 62 and older collectively held nearly $13.95 trillion in home equity. Yet, for many older adults, this has led to an uncomfortable financial position: being house-rich, but cash-poor. Others may find themselves blindsided by a financial crisis in the coming years and have little recourse without tapping into their retirement portfolio, which could reduce their monthly income.
In this column, we’ll explore the upside and the often-overlooked drawbacks of rapidly appreciating home values—and how these factors are shaping financial conversations with older homeowners.
The Hidden Costs of Appreciation
Rising home equity may seem like a blessing, but it often comes with hidden burdens. Chief among them are increased property taxes and soaring homeowners’ insurance premiums.
Take California, for example. State Farm recently imposed a 17% rate hike on homeowners’ insurance, with an additional 11% increase pending. If approved, this would result in a staggering 28% increase. For seniors on a fixed income, these mounting expenses can put pressure on budgets and force difficult decisions. Some older homeowners who own their home outright now have property tax bills that exceed their previous mortgage payments.
Home Equity is Just a Number until…
Home equity is not a liquid asset—it’s just a number on paper unless accessed through a refinance, home sale, or reverse mortgage. Worse yet, it can shrink overnight.
In March 2025, home prices across the 20 largest U.S. metro areas dipped by 0.12%, marking the first monthly decline in over two years. While minor, this drop highlights the reality that real estate markets are cyclical. Seniors counting on their equity as a safety net may find themselves in trouble if home values decline or if they can’t qualify for a loan when they finally need access to that wealth.
Tapping Equity Without the Burden
One potential solution for older homeowners is a Home Equity Conversion Mortgage (HECM). As reverse mortgage professionals know, a HECM-Reverse Mortgage converts a portion of a borrower’s home value into cash or a growing line of credit, without required monthly mortgage payments.
Of course, HECMs do have significant upfront costs, including a 2% initial mortgage insurance premium (MIP) based on the home’s appraised value, capped by the FHA’s lending limit. For a home valued at $1,149,825 or more, that cost alone can exceed $24,000. Even so, a HECM can offer significant long-term value, especially through its line of credit feature, which grows each month the funds remain unused, at a rate tied to the current note rate plus 0.5% annual MIP.
The Cost of Waiting: One Example Consider this scenario: a 72-year-old homeowner with a fully paid-off home that’s worth $600,000 today. If their home value dropped by 25% in five years, that home would be worth $450,000: that’s a $150,000 ‘loss’ in equity that may never be recovered in that homeowner’s lifetime.
But if that same homeowner had secured a HECM-Reverse Mortgage when the home was worth $600,000, they might have locked in access to a $200,000 line of credit. Over time, that unused credit line would continue to grow, regardless of future home price drops.
Yes, there are costs. Let’s assume the initial loan balance (UPB) was $16,500. At an average 5% interest rate, plus the 0.5% annual MIP, in five years the loan balance would grow to about $22,000 a total increase of just over $5,200. They in essence preserved access to $150,000 in equity that they otherwise may have lost while securing a line of credit that has grown to over $250,000 over five years.
The HECM-Reverse Mortgage: Flexibility Over Fragility
Being house-rich doesn’t always make one financially secure, especially for older adults facing rising costs, uncertain markets, and limited income. While reverse mortgages aren’t for everyone, tools like the HECM can offer a powerful way to preserve access to home equity without sacrificing ownership or taking on new monthly mortgage payments.
In the end, the real question isn’t whether a home is valuable, but whether its value can be used when it matters most.
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Call me today at 786-262-6486 or email me RodKohly@HomeFinancingFL.com or use the Form provided below to request information. No Cost or obligation
Memorial Day Never Forget
IL SILENZIO ...Beautiful and Haunting
About six miles from Maastricht, in the Netherlands, lie buried 8,301 American soldiers who died in "Operation Market Garden" in the battles to liberate Holland in the fall/winter of 1944. Every one of the men buried in the cemetery, as well as those in the Canadian and British military cemeteries, has been adopted by a Dutch family who mind the grave, decorate it, and keep alive the memory of the soldier they have adopted. It is even the custom to keep a portrait of "their" soldier in a place of honor in their home.
Annually, on "Liberation Day," memorial services are held for "the men who died to liberate Holland." The day concludes with a concert. The final piece is always "Il Silenzio," a memorial piece commissioned by the Dutch and first played in 1965 on the 20th anniversary of Holland's liberation. It has been the concluding piece of the memorial concert ever since.
This year, the soloist was a 13-year-old Dutch girl, Melissa Venema, backed by André Rieu and his orchestra ( the Royal Orchestra of the Netherlands ). This beautiful concert piece is based upon the original version of “Taps” and was composed by Italian composer, Nino Rossi.
http://www.flixxy.com/trumpet-solo-melissa-venema.htm
If You Have a Reverse Mortgage in Florida, Now You Could Benefit with Additional Funds From Your Equity!
You might be eligible to Refinance your Reverse Mortgage with a New Reverse Mortgage and either 1) Lower your Interest Rate or 2) get additional Funds either as a Cash Lump Sum or 3) an Increased Line Of Credit, or a combination of the 3.
You can benefit from either the Federally Insured FHA-HECM or from our Proprietary Reverse Mortgage Programs up to $4,000,000 Maximum Loan Amount. View On Line
To determine your eligibility, please email or text the following Documents: No Cost or obligation.
Call me at 786-262-6486 or email RodKohly@HomeFinancingFL.com today
By Fergal McAlinden 23 May 2025
Florida’s condo market crisis is gathering pace, with sellers rushing to offload properties amid surging ownership costs in what a realtor based in the state has described as a “perfect storm” of financing, regulatory, and insurance challenges.
Closed sales of townhouses and condos across Florida dived by 9.2% in 2025’s first quarter compared with the same period last year, while new pending sales fell by 13% and active listings soared a full 35%.
That scramble for the exits has hastened as scores of condo owners in the Sunshine State saw their dream purchase sour thanks to spiking insurance costs and other fees, as well as a plunge in property values.
The crisis emerged in the wake of the Surfside condo catastrophe in 2021, a collapse that saw 98 people lose their lives and led to mandates for structural inspections and reserve funds to cover potential repairs.
Buyer confidence has plummeted – and less than a quarter of condo associations throughout the state are currently meeting those new standards, the Department of Business and Professional Regulation says.
The new regulatory oversight has had a big impact on lending in Florida, realtor Alexei Morgado told Mortgage Professional America. “The condo market is in the midst of a perfect storm,” he said. “The combined effect of these new laws made over 1,400 condos in Florida ineligible for the standard loan. Buyers now rely on non-QM loans to buy condos in Florida, and the rates and terms are worse.”
Insurance, HOA fees continue to surge
Meanwhile, insurance premiums are on the up due to climate risks and those structural concerns, and Morgado said HOA [homeowner association] fees and special assessments have “skyrocketed”.
“It’s not unheard of for monthly HOA dues to exceed $3,000,” he said. “Insurance costs in the Florida condo market have climbed due to increased climate risk, which has led some insurance companies to withdraw from the condo insurance market completely. The insurance is another hurdle because buildings without full coverage cannot qualify for a Fannie Mae-backed loan.”
Newer condo prices are remaining steady, helping prop up the overall average condo cost across the state, but older properties are having a hard time finding buyers because of that whirlwind of factors.
Meanwhile, supply continues to rise as a buyer’s market strengthens. Across the entire Florida housing market – not just the condo space – 34% of homes sold with price drops, according to Redfin, and just 10.2% of properties changed hands for more than the listed price.
Climate risks are mounting around the Florida housing market
Another big regulatory impediment to hopeful sellers: a so-called mortgage “blacklist” held by Fannie Mae, which the government-sponsored enterprise (GSE) uses to mark buildings ineligible for loan backing.
The Wall Street Journal and experts tracking the issue say the number of South Florida properties on that list has more than doubled during the past two years and features 696 condo buildings across Miami-Dade, Broward, and Palm Beach counties.
Like California and Louisiana, the growing prominence of natural disasters in Florida has sparked an exodus of insurers from the state – and Federal Reserve chair Jerome Powell has sounded the alarm on the growing risk of climate change to the US mortgage market.
“If you fast-forward 10 or 15 years, there are going to be regions of the country where you can’t get a mortgage,” Powell said during his semi-annual testimony before Congress in February, noting the increasing reluctance of financial institutions and insurance providers to cover areas prone to environmental threat.
But Morgado is still positive about the outlook for the future of Florida’s condo market, saying that buyers who do their homework will be able to purchase a property with little ado.
“These pressures are causing sales to stall and prices to drop,” he said. “However, buyers willing to put in the time and effort to read each proceeding datum represented by the reserve study, inspection reports, and insurance reports can buy a good condo that will prove to be a solid investment.”
3 Ways Retirees Can Prepare for a Recession
Retiring is a significant financial achievement. However, the highly publicized conjecture of an impending recession has added layers of complexity and concern for those who’ve recently retired or are preparing to do so. However, with strategic planning and informed decisions that look to all asset classes, retirees may be able to safeguard their financial well-being even during economic downturns.
Here are three key strategies retirees may want to consider:
1. Diversification
After a record high the S&P 500’s rapid 10% decline has pushed the markets into correction territory. CNBC reports the U.S. stock market has lost $5 trillion in value in just three weeks. In such markets, diversification is essential as all asset classes don’t respond the same way to economic news, a new Presidential administration, or inflation.
Yet, some retirees may be reluctant to dump their stocks- especially if doing so would result in realized losses being sold lower than the original purchase price. Knowing this, some older homeowners have chosen to take a federally insured reverse mortgage, known as the Home Equity Conversion Mortgage or HECM. Borrowers who have a sizeable line of credit in their HECM may opt to take modest withdrawals from their line of credit rather than from their portfolio. This preserves investments and helps protect future sustainable withdrawals. This ‘standby reverse mortgage’ strategy should be done under the guidance of a qualified financial professional.
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2. Establish an emergency fund
Having a readily accessible emergency fund is vital for covering unforeseen expenses without disrupting long-term investments. Financial experts recommend setting aside funds to cover six to twelve months of living expenses. Unfortunately, for some retirees, this is not possible.
Rather than running up credit card balances to meet unexpected expenses a retiree may find the HECM’s line of credit to be their ace in the hole, cushioning them against the impact of unexpected financial shocks. Unlike a HELOC there are no required monthly payments preserving cash flow and the credit line may not be reduced or frozen due to a change in home values or the homeowner’s financial circumstances.
3. Reassess location
Relocation is one of the most powerful ways retirees can reduce their cost of living. Relocating to a lower-cost state or municipality can make all the difference between one’s retirement portfolio lasting or running out of funds. Even better, qualified older homeowners may be able to use a HECM for Purchase to buy a new home in a less expensive region. This reduces their monthly expenses and relieves them of the burden of required monthly mortgage payments. Relocation is typically not top of mind for most retirees but its benefits are undeniable.
These are just three ways older homeowners may be able to mitigate the worst impacts of an economic recession whether it comes to pass or not.
*** Call me today at 786-262-6486 or email me RodKohly@HomeFinancingFL.com or use the Form provided to request information. No Cost or obligation
Types Of Construction Loans
The two Principal Types of Loans are:
This is for the Borrower that Closes in his/her’s own Name with the intention to keep the property as a) Principal Residence b) 2nd Home or c) Investments.
ViewOnline http://www.HomeFinancingFL.com/Construction1Step
View OnLine http://www.HomeFinancingFL.com/PrivNewConstruction
Call me today at 786-262-6486 or email me RodKohly@HomeFinancingFL.com or use the Form provided Below to request information. No Cost or obligation
South Florida Area!
"JUMBO”
Rates are Down, Home Prices increase as the rates decrease. Don’t wait!!!
3) JUMBO Non-QM To $10 Millions4) JUMBO Smart Loan
5) JUMBO DSCR
7) JUMBO 55 Plus (for Seniors 55 and older)
Since 2010 Social Security Benefits Have Lost 20% Buying Power
How Social Security benefits have lost 20% of their purchasing power
How have Social Security benefits kept up with inflation? With 97 percent of older adults (aged 60 to 89) either receiving Social Security or will it’s imperative to measure the impacts of inflation against Cost of Living Adjustments (COLAs).
The Senior Citizens League, a nonpartisan group that monitors and advocates for senior benefits such as Social Security and Medicare found that Social Security benefits have lost 20% of their purchasing power since 2010 despite cost-of-living adjustments
Crunching the Numbers
Their study states, “A retiree who is 75 years old today would have been about 60, paying
into the program during the tail end of their peak earning years.8 The average benefit would need to be $2,230.46 to recover the 20 percent loss in buying power. That’s a difference of $370.23 per month or $4,442.80 per year”.
The underlying cause is cost-of-living-adjustment lagging behind inflation in eight of the last 15 years. Only the 2023 cost-of-living adjustments exceeded inflation when Social Security recipients received an 8.7% boost in benefit payments.
Cumulative Impacts
The cumulative effects of insufficient adjustments and higher-than-normal inflation have pushed many retirees into financial insecurity. The rate of inflation exceeded Social Security cost-of-living-adjustments in the early 80s as record inflation reached 13.5% in 1980 before retreating to approximately 3.5 percent in the last half of the 1980s.
To illustrate the point The Senior Citizens League gives this example. “Imagine that you retired with a monthly benefit of $1,000 in 2009. The next year, you get a COLA of 0.0 percent and inflation of 2.7 percent. Now, your payment is still $1,000, but would need to be $1,027 to be worth the same as it was the year before. Then, in 2011, you get knocked down even further with a COLA of 0.0 percent, compared to inflation of 1.5 percent. Suddenly, your payment is still $1,000, but would need to be $1,042 to maintain the same worth as when you retired—you’ve lost 4.2 percent of your buying power. From there, even if COLAs perfectly matched inflation over the next 10 years, you’d never recover your lost buying power.”
Compounding matters are key services that older Americans rely on in retirement. The League found that from 2010 to 2024 transportation costs increased 96%, communication by 92%, housing by a whopping 81%, food by 56%, and medical services by 50%.
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Florida older homeowners who find their purchasing power lagging behind real expenses and those with the required equity to qualify for a reverse mortgage should look into it to see it could help them to supplement their dwindling retirement income.
HOME MODIFICATIONS FOR AGING-IN-PLACE
Aging In Place, By Lori Russell
Aging-in-place home design is considered to be a rapidly growing segment of the residential renovation industry. So rapid, in fact, that home builder associations across Canada have created specialized training to award those who have completed the aging-in-place renovations course with the designation of Certified Aging-In-Place Specialist.
In order to accommodate an aging population, home modifications for aging-in-place are no longer an afterthought.
Aging-in-place means having the ability to remain in your own home comfortably, safely, and independently regardless of age, ability level, or income (current or future). The preference for many seniors is to stay in their own home with caregiver support rather than be moved into a long-term care or assisted living facility.
Aging-in-place renovations and home modifications don’t need to be obvious. Guests to your home might just be impressed with the ease of accessibility, wide doorways, and bright natural light throughout your home. They may not clue in right away about the full scope of mobility accessible features.
By using universal design features when considering aging-in-place home modifications, your home (or the home of the person in your care) will be safe and welcoming to everyone, regardless of age or physical abilities.
By hiring a home contractor who has completed the training required to become a Certified Aging-In-Place Specialist, you are hiring someone who:
The goal is to build, renovate, or modify a home that works for the resident now, but is able to support them as they age. In addition to making the home safe, it’s also important to look for ways to reduce the amount of home maintenance.
All areas of the home should be looked at for safety. Home modifications that could be done by certified aging-in-place renovation specialists might include:
Modifications throughout the home:
Aging-in-place bathrooms:
Aging-in-place kitchens:
Certified Aging-In-Place Specialists work with the home owners to determine which adaptability features are most important to their needs and fit within their budget. You don’t have to modify your home in every way possible, but look at the options available, and think about what’s realistic for your situation, or if you are a family caregiver, realistic for the person in your care.
Everything from simply installing handrails and safety grab bars in the bathroom, to more elaborate elevator installations falls under the spectrum of aging-in-place renovations. Chair lifts, ramps, adjustment of counter height, main-floor bedrooms, curb-less shower stalls; anything is possible, as long as budget and home structure allows.
It’s important for many seniors to be able to stay in their homes because it’s an environment they are accustomed to, and they are comfortable navigating. They are familiar with their neighbours, may live close to friends and family, and have routine social engagements. It can be daunting for seniors to suddenly have to figure out new routines and become accustomed to a new environment.
Home builder associations across Canada are providing ongoing training towards aging-in-place certification. Continuing education is required, as is annual renewal of certification. This ensures that certified contractors are up-to-date on current standards and new developments in the field.
Education is based on technical, business management, and customer service skills, all of which are necessary in order to know how to market to, and work with older adults and/or their family caregivers.
Planning for aging-in-place home design, renovations or upgrades is a conversation that you, as a supportive daughter or son can start to have now. Conversations should be based around budget, home structure, and, most importantly, needs now and in the future.
Have you broached this subject with your parents?
Call me 786-262-6486 or email me RodKohly@gmail.com or use the Form provided Below to request information on the Funds you can get from a Reverse Mortgage. No Cost or obligation:
published in Retirement Magazine July 11, 2024
Equity is the financial stake a homeowner has in their home. For a person who owns a home free and clear, their equity is equal to the market value of the home. Equity for borrowers with mortgages is the value of the home minus the amount owed on the mortgage. As the borrower makes payments toward the principal and interest, they reduce the loan amount and increase their equity in the home. Equity can increase if the home value appreciates because of market fluctuations. If you decide to renovate your home, you can also increase the equity in your home.
The U.S. Department of Housing and Urban Development (HUD) does not have a specific guideline on the amount of equity a homeowner needs to be potentially eligible for a reverse mortgage. Generally speaking, homeowners need at least 50% equity in their homes to qualify for a reverse mortgage. Individual lenders make specific determinations about required equity depending on individual borrower circumstances and the current interest rates.
In addition to determining whether you can obtain the loan or not, your equity directly impacts how much money you could receive in proceeds. If you own your home outright, you will receive the maximum amount of proceeds from your reverse mortgage. However, if there is a balance, the proceeds from the reverse mortgage will be used to pay off that outstanding amount as a requirement of the loan, and then you could receive the remaining amount subject to any set-aside requirements imposed by your lender and the HUD’s limitations on the disbursement.
Some borrowers may need more equity, especially if they just purchased their home or have large mortgages. There are some options if a borrower doesn’t have enough equity. They are as follows:
Request Information about a Reverse Mortgage
Request Information about a Reverse Mortgage For Purchase
Florida Affordable Housing Program
Is Back Effective July 1st, 2024 for a limited time and Funds on a 1st Come First Served Basis This wonderful Program provides down payment and closing cost assistance up to $35,000 to 1st-Time, Income-Qualified HomeBuyers in any type of Profession or work so they can purchase a primary residence in Florida. Florida Hometown Heroes Loan Program also offers a lower first mortgage rate ||This Makes homeownership affordable for eligible employed 1st Time HomeBuyersProgram Details: Eligible workers can also receive lower than market rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points and down payment and closing cost assistance. Types of Properties: 1 to 4 Families, Condos, Manufactured. Minimum Credit Score 640
You must be Pre-Approved prior to July 1st. Do not Waste Time. Get Pre-Approved Now!!! 1st Step…
$0 Down
0% Down Purchase program. Simply put, qualified borrowers receive a 3% down payment assistance loan, up to $15,000, from the Lender. This will help the 1st Time HomeBuyer to buy with $0 Downpayment.*
Call 786-262-6486 or email rodkohly@gmail.com or fill out the form provided below for fre, no pbligation information
Hurricane Season!!! * 2024 * Temporada Huracanes
ENGLISH Well, again, hurricane Season is upon us. Let us hope that our State is not affected (or any State). But it pays to be prepared. Please Visit:
https://www.ready.gov/hurricanes & Florida Dept Of Elder Affairs Download this Booklet 2023 Disaster Resource Guide for Older Adults (elderaffairs.org)
ESPAÑOL
Pues, una vez mas, la temporada de Huracanes llegó. Ojalá no afecte a nuestro Estado, (ni a ningun otro). Pero, es mejor estar preparado. Por favor, visite:
https://www.ready.gov/es/huracanes &
Florida Dept Of Elder Affairs Descargue este Libreto
2021 Guía de recursos en casos de desastres para personas mayores (elderaffairs.org)
For General Information On Elder Affairs and Services Provided
Resource Directory - DOEA (elderaffairs.org)
Para Informacion General y Servicios Provistos (ingles)
Other Resources
Florida Department Of Financial Services
https://myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---emergency-financial-preparedness-toolkit.pdf?sfvrsn=7ae6507b_16
Espanol https://myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/spanish---emergency-financial-preparedness-toolkit.pdf?sfvrsn=f5a0dc71_4
Natural Disaster Guide https://myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices-documents/understanding-coverage/consumer-guides/english---natural-disaster-guide.pdf?sfvrsn=83c10fe0_12
Federal Alliance for a Safe Home Deaf Preparedness Brochure.indd (elderaffairs.org)
Disister Preparedness Guide Florida Dept of Elder Affairs
https://elderaffairs.org/wp-content/uploads/2023-DIsaster-Guide_Digital.pdf
Disaster Preparedness and the Deaf Community
Deaf Preparedness Brochure.indd (elderaffairs.org)
Older Floridians Handbook
https://fji.law/wp-content/uploads/2016/06/OFHandbook-2016_web-07127475xB3B17.pdf
Florida Veterans https://www.floridavets.org/
Be safe and Healthy!
Sincerely,
Juan Luis
¡Esten Seguros y Saludables!
Sinceramente,
Juan Luis:
Retirees may face a perfect storm of economic conditions. Shannon Hicks | May 20, 2024
Stagflation may not be where we are today but it could be where we’re headed. “I actually lived it. I was a kid but I remember how painful it was,” Diane Swonk, KPMG’s chief economist, told the Observer. “That’s not where we are today; stagflation today would require a pretty large increase in unemployment and a pretty large increase in inflation”.
There are growing concerns among economists that the U.S. could be heading into an extended period of stagflation- a perfect storm of economic conditions.
If you lived through the 1970s and were old enough to observe the change in your or your parent’s lifestyle you may appreciate the economic pain that stagflation entails. In our family of eight, we canceled our milk deliveries from our local milkman and switched to powdered milk. Red meat became more scarce in the weekly menu and sloppy joes were a weekly tradition.
Stagflation is an economic cycle characterized by slow economic growth (GDP), stubborn or rising inflation, and high unemployment. Essentially a stagnant economy with higher than average inflation.
Recent economic indicators show that inflation remains well above the Federal Reserve’s target of two percent with the most recent CPI report showing headline inflation at 3.5%. However, in a white paper, UBS notes, “Stagflation needs two more factors: a period of lax fiscal and monetary policy, plus the appearance of an external supply shock that disrupts the economy”. Presently, we have the first and could face the second should global conflicts disrupt the flow of oil or other commodities.
Stagflation is an economist’s catch-22. If the Fed pushes too hard to curb inflation through quantitative tightening or raising rates they could exacerbate unemployment. However, if the central bank cuts rates to stimulate a struggling economy they could stoke the fires of inflation even further. While the Fed’s rate hikes have brought inflation down from its 9.2% high in June 2022, both core and headline inflation appear to have become sticky with the CPI hovering over 3% since last July.
Michael Hartnett, Bank of America’s chief investment strategist is sounding the alarm seeing what he calls ‘stagflationary’ economic data. “The labor market is cracking in the U.S., and at the same time there isn’t a human being in America that thinks inflation is getting to 2 percent”, said Harnett in a Bloomberg TV interview in March.
While the U.S. GDP is outperforming other G7 nations, cracks are beginning to form throughout the economy as both the commercial and residential markets struggle under higher interest rates. But more importantly, how are retirees impacted? For savers, their retirement plan likely doesn’t factor in infrequent economic scenarios like stagflation which could erode their earnings and purchasing power. It would also increase the probability retirees may need to provide financial assistance for their adult children.
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A Reverse Mortgage can give you the Financial Freedom to live suitable standard of Living. Call 786-262-6486 or email RodKohly@gmail.com today or fill out the form provided below for free, no obligation information
Social Security COLA Increase Slammed as New Estimate Released
Story by Suzanne Blake
Anew cost of living adjustment (COLA) prediction for Social Security has many seniors scratching their heads at how they'll stretch their benefits amid inflation.
The Senior Citizens League (TSCL) just predicted the COLA for 2025, saying beneficiaries can expect a 2.66 percent bump in benefits. Earlier in the year, the estimate was set at 2.6 and 2.4 percent.
If a 2.66 percent boost is implemented, it would likely increase monthly payments by around $50 for most recipients.
While the jump in monthly benefits would be better than the earlier predictions, many seniors were expecting a higher boost to deal with the impacts of inflation.
The Social Security Administration adjusts Social Security payment amounts every year based on the consumer price index, but not everyone feels the change would be enough to get by.
"While COLA payments will increase to offset the effects of inflation, the problem many have with the potential percentage jump is it won't get far enough to meet most of the financial needs of seniors," Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. "Obviously daily expenses for this age group continue to rise, but the uptick in healthcare costs are putting an additional strain on them, and COLA payments may not be enough to match that uptick."
Seniors will also likely be dealing with higher Medicare Part premiums, according to TSCL.
In the Medicare Trustee report from this month, Part B premiums were predicted to grow by $10.30 a month to a total of $185. That increase is on top of nationwide inflation on groceries, housing and transportation.
"For 2024, the average Social Security benefit rose by $50 and after subtracting $9.80 to cover Medicare Part B Premium increases, the total change in benefits came out to just $40.20 a month. With the forecast of a 2.66 percent COLA for 2025, it appears seniors will continue to suffer financial insecurity as much next year as they have this year," Shannon Benton, executive director of TSCL, said in a statement.
The COLA for each year depends on the rise of the consumer price index for urban wage earners and clerical workers (CPI-W) for the third quarter of the last year. That means the official COLA for 2025 won't be calculated until later in the year.
Many finance experts have questioned whether the CPI-W even stands as a good measure of what seniors can expect inflation wise, with many saying the consumer price index for the elderly (CPI-E)
In 2024, Social Security checks rose by 3.2 percent due to the COLA after a more generous increase of 8.7 percent last year. Many seniors, roughly 71 percent, reported in TSCL 2024 Senior Survey that the increase in household costs they saw went beyond the 3.2 percent jump from the COLA.
"The majority of seniors still feel like their costs are rising faster than those annual adjustments," Michael Ryan, a finance expert told Newsweek. "So while the COLA certainly helps, it often still doesn't fully cover the real inflation draining seniors' buying power."
Due to the insufficient funds from Social Security for seniors, many will need additional income streams, including a 401(k), IRA or other investment accounts.
"At the end of the day, any COLA increase is better than none to prevent total Social Security stagnation," Ryan said. "But the 2.6 percent projection for 2025 underscores the need for policymakers to reexamine whether metrics like CPI-E would better serve seniors by more accurately reflecting their unique spending habits. We just want to make sure government benefits retain as much purchasing power over time as possible on those fixed incomes."
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A Reverse Mortgage can help Seniors 55 years of age or older to live a more financially free life. Inquire, no cost or obligation...
Unlocking Financial Freedom for Seniors: The Transformative Power of Reverse Mortgages
ACCESSWIRE 20th April 2024, 01:50 GMT+10
ORANGE, CA / ACCESSWIRE / April 19, 2024
A Personal Journey to Financial Empowerment
The journey in the finance industry is driven by a single mission: to ensure that every senior can enjoy their retirement years with dignity, comfort, and financial security. 'Many homeowners are unaware of the incredible benefits a reverse mortgage can offer,' says Swoish. 'From eliminating monthly mortgage payments to providing tax-free income, the potential to improve seniors' lives is immense.'
The Untapped Potential of Reverse Mortgages
Reverse mortgages stand as a beacon of hope for many seniors struggling to maintain their lifestyle in retirement. By eliminating monthly mortgage payments, these financial tools can significantly improve cash flow and offer a lifeline to those burdened by financial constraints. The flexibility to use the proceeds for a wide range of needs - from healthcare expenses to home repairs, or even purchasing a new, more suitable home - makes reverse mortgages a versatile solution for many challenges that seniors face today.
Moreover, the guarantee that the value of a reverse mortgage credit line will increase over time provides a reassuring buffer against future financial uncertainties. 'It's not just about providing financial solutions today,', 'but securing a prosperous and stable future for our seniors.'
A Call to Action: Discover the Path to Financial Freedom
We invite seniors, their families, and financial advisors to explore how reverse mortgages can transform retirement planning. 'Let's dispel the myths and uncover the true benefits of this powerful financial tool together,'
For anyone interested in learning more about reverse mortgages and how they can be the key to a worry-free retirement, I offer personalized consultations. Together, you can explore how a reverse mortgage might fit into your or your loved one's financial strategy.
Call 786-262-6486 or e,mail rodkohly@gmail.com today or use the form provided below for free no obligation information;
Modern retirement problems require modern solutions
Society is still clinging to a retirement model that no longer exists
The renowned comedian Chapelle coined the phrase “Modern problems require modern solutions”, in the first episode of the season of his self-named show. This classic comedic line brings to mind the challenges older Americans face today. Modern problems such as only 21% of retirees having a company pension and a quarter of Americans have no retirement savings at all.
Due to a lack of retirement savings, high interest rates, and stubborn inflation, the wheels have fallen off the proverbial retirement wagon. But all hope isn’t lost for those fortunate enough to own their home in which they may have substantial equity. A CBS’s MoneyWatch column entitled, “Here’s when a reverse mortgage makes sense, experts say” points to four situations when getting a reverse mortgage may be the right choice.
1) The first is when retirees find themselves lacking the funds to live comfortably in their non-working years. Even those who diligently saved and invested over decades under the guidance of a financial planner could end up coming up short thanks to inflation.
Generally, financial professionals plan for an annual inflation rate of 2.5% However, inflation above this threshold places increasing stress on a retiree’s ability to maintain sustainable withdrawals throughout retirement. Many who believed their savings would be sufficient will keep their homes hoping to pass them on to their children. However, sustained inflation or an unforeseen financial shock can wreak havoc on the best-laid plans. Future stock market losses can further constrain future cash flow when coupled with the increased cost of living.
2) The second example when a reverse mortgage may make sense is when a retiree is considering taking out a loan to offset upcoming or current expenses. With both HELOCs and personal loans requiring monthly payments a reverse mortgage can provide access to cash without the burden of payments. Reverse mortgages stand alone as the only loan that doesn’t require the borrower to make principal and interest payments each month.
3) The third factor that could make a reverse mortgage ideal is when a homeowner has substantial equity. According to NRMLA’s RiskSpan Reverse Mortgage Market Index, homeowners 62 and older had $12.84 trillion in equity. However, many homeowners overlook that home equity is neither real nor tangible until it’s separated from the home either by a sale or taking a loan. Just because it’s there today doesn’t mean it will be there tomorrow.
“Consumers with few assets to leave to their heirs may want to avoid a reverse mortgage. Their heirs may be left with little to no equity and very few options to keep the property”, says Michelle White, mortgage expert at The CE Shop. While this may be true, most older homeowners don’t want to be a financial burden on their children. And if their children are unable or unwilling to assist what’s the homeowner’s Plan B?
4) The fourth situation when a reverse mortgage may be suitable is when a retiree wants to postpone tapping into their retirement savings or delay Social Security benefits.
While such strategies may reduce taxes and boost future Social Security payments retirees should seek the advice of a qualified financial professional who can help them weigh the costs, benefits, and risks of postponing Social Security.
In conclusion, older Americans are facing modern problems. These problems require modern solutions not rooted in the retirement trends of yesteryear but based on the brave new world older Americans face today. Yes, modern problems require modern solutions and a reverse mortgage could be just that for many.
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Reuters home
The latest CPI inflation report was disappointing. March’s Consumer Price Index came in much hotter than anticipated. The annual rate of inflation increased by 3.5% in March. That’s a significant increase from February’s 3.2% rate. With the cost of fuel, and groceries still climbing, and mortgage rates at a 23-year high, there’s no sign of inflation retreating which has led many economists to believe the Federal Reserve may not cut rates at all this year.
Now let’s look at where we find ourselves today.
Beginning in the spring of 2022 the Federal Reserve embarked on a record-setting series of interest rate hikes to curb inflation and to date, those rate hikes and reducing the Fed’s balance sheet have worked- to a point. However, with home prices stubbornly stuck near-record highs in most markets, and high mortgage rates a key component of Core- inflation remains problematic. Rents and the owner’s equivalent comprise 40% of the Core Consumer Price Index. However, the core CPI does exclude more volatile goods such as food and fuel. Coupled with rising fuel costs in the overall CPI inflation could become entrenched.
Despite the Fed’s efforts inflation could push even higher. Why? Two words: government debt.
The federal government will soon have to roll over debt that was much cheaper into new debt at much higher interest rates they can barely afford.
This leaves the government with two choices: to default or have the Federal Reserve begin quantitative easing- or money printing. Ultimately our debt is monetized in one of four ways: Borrowing the money by issuing Treasury bonds, printing more money (quantitative easing), increasing taxes, and lastly and least likely, reducing spending. When the debt is monetized with quantitative easing the federal government pushes that cash into the economy which further accelerates the rate of inflation. And here’s something to consider. Our federal government’s spending is so out of control that even the International Monetary Fund or IMF issued a warning last Wednesday that US spending and surging debt is adding stress and volatility to other markets across the global economy.
Today we face a dilemma similar to what economists called The Great Inflation in the 1970s. Then much like today, politicians placed the blame on oil prices, speculation, and greedy corporations. However, ultimately economists could point to the federal government’s massive deficit spending and budget deficits as the true culprits.
The Fed may claim political independence from the White House and Congress, but history has shown that’s not always the case. In early 1970 President Nixon fired the current Fed Chair and replaced him with Arthur Burns, with whom he had worked together in the Eisenhower administration. After hiking the Fed Funds Rate between 1972 and 1974 Burns reversed course the following year facing a steep recession and high unemployment.
Unfortunately, cheap money and lower interest rates were followed by another surge of inflation. What followed was a period of stagflation with persistent high inflation and high unemployment coupled with a stagnant economy.
Could we find ourselves on a similar trajectory? Overlaying the CPI index’s growth from 1966 to 1982 over 2014 to 2024 we see a familiar pattern. The Fed raises rates to curb inflation, unemployment rises, and the central bank cuts rates to stimulate the economy, followed by accelerated inflation.
In conclusion, now more than ever older Americans will need to look to all their assets, including their home, to weather an uncertain economy and sustained inflation. Yes, our penetration of age-eligible households remains low, but increasing economic pressures could lead many to reconsider a reverse mortgage.
????? A Reverse Mortgage can help Seniors 55 yeas of age or older to mitigate the ravages of the ever growing inflation we are all suffering.
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Americans have more debt than ever before which is especially dangerous for older Americans living on a fixed income. Today individual debt levels and credit delinquencies are approach pre-recession levels similar to those seen before the Great Financial Crisis and Recession of 2008. Relief in the form of lower interest rates is increasingly unlikely as the March Consumer Price Index (CPI) report shows the rate of persistent (not transitory) inflation is accelerating. The Federal Reserve still has a long way to go before they feel compelled to cut interest rates- that is unless the economy slips into a recession.
Today we will examine the economic headwinds that have resulted in higher rates and increasing pressure on Americans- especially seniors.
Inflation and higher interest rates are a toxic mix that is pushing more Americans into financial jeopardy as many purchase increasingly expensive everyday purchases on credit.
March’s inflation report released last week came in at its highest level since December. The annual rate of inflation grew to 3.5% in March- well above the central bank’s target of 2 percent. This may lead Federal Reserve Governors to grab their erasers for any planned rate cuts later this year or even consider increasing the Fed Funds Rate.
“If we continue to see inflation moving sideways, it would make me question whether we needed to do those rate cuts at all,” said Minneapolis Federal Reserve Bank President Neel Kashkari.
Earlier this month Federal Reserve Governor Michelle Bowman told attendees at the Shadow Open Market Committee in New York, “While it is not my baseline outlook, I continue to see the risk that at a future meeting we may need to increase the policy rate further should progress on inflation stall or even reverse”.
Presently, these hawkish viewpoints are in the minority but that could change. In his letter to shareholders, JPMorgan Chase CEO Jamie Dimon the bank should prepare for rates as high as eight percent or even more. Dimon notes the government’s deficit spending is is effect acting as an economic stimulus- a policy that undermines the Fed’s efforts to curb inflation.
So how are American’s coping with today’s higher prices? It’s likely with their credit cards.Federal Reserve Data shows that delinquency rates for consumer debt are climbing fast approaching the levels seen in the years leading up to the 2008 recession. Does this mean we’re on the cusp of a recession? Not necessarily but the correlation is interesting. What is certain is if interest rates are increased delinquency rates would worsen.
When it comes to debt held by Americans aged 65-75 MarketWatch reports the following averages for 2022. The average mortgage balance was $175,670, installment loans 28,690, car loans $23,690, and an average credit card balance of $7,720. Those numbers are likely even higher today and will continue to trend upward. Case and point.
The pre-tax income for Americans between the ages of 65-74 only increased 4.6% from 2019-2022 while inflation increased by 13% during the same period. Overall credit card balances have surged 47% over the last three years and nearly half or 46% report they are carrying credit card debt over month-to-month. All which points to the increasing pressure older Americans living on a fixed income in retirement are facing.
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The problem of debt among retired people is on the rise. Nearly one of every two Americans now expects to retire in debt, according to a recent survey from MagnifyMoney researchers. Among those 70 years and older, total debt has exploded from about $350 billion in 1999 to $1.42 trillion through the first quarter of this year. That’s up a whopping 305%, according to data from The Federal Reserve of New York.
Many retirees face financial and income constraints, which makes managing debt particularly tough, according to Grant Higginson, president of Homeowner Debt Relief in New York City. “First, retired people often have a fixed income, which can make it difficult to keep up with monthly payments,” he said. “Second, interest rates on debt may be higher for retirees, making it even more difficult to pay off the debt.”
Recent economic developments are adding fuel to the fire, added finance expert and blogger Samantha Hawrylack. “One is the increasing cost of living, which has made it difficult for many retirees to make ends meet on a fixed income,” said Hawrylack. “Many have seen their investments plummet and have been forced to take on debt just to keep up with their expenses.”
Baby boomers (those 58 to 74 years old) carry an average mortgage debt of $191,650, according to Experian data. They also hold the second largest average student debt—roughly $40,512—only surpassed by Generation X, according to Educationdata.org.
Not only are older Americans shouldering more debt than ever before, but they are relying more heavily on high-interest debt to make ends meet. According to Experian’s 2020 State of Credit?report, baby boomers on average carry $25,812 in non-mortgage debt, which includes credit cards, personal and student loans, and loyalty cards typically through retail outlets.
“Many retirees use credit cards to pay for everyday expenses, such as groceries and gas,” explains Linda Chavez, founder and CEO of Seniors Life Insurance Finder in Los Angeles. “Others use them to pay for larger purchases, such as vacations or new cars.”
Juggling multiple sources of debt can be stressful, especially for those on a fixed income. However, if you are one of the millions of retired people dealing with retirement debt, making strategic decisions about prioritizing repayments can offer a clear path forward.
Focus on reducing debt with the highest interest rates first, especially credit card debt, suggests financial planner Andrew Rosen president of Diversified LLC, a financial planning firm. “Debt with lower rates, such as a low fixed-rate mortgage, is less of an issue, and you’ve likely already budgeted for this expense in your retirement,” said Rosen.
Another way of making overwhelming debt manageable is by consolidating debts into a single monthly payment.
“It can also help you get a lower interest rate,” said Chavez, who suggests struggling retirees can also seek help from vetted debt relief service providers. “A debt relief company can help you negotiate with your creditors and get a lower interest rate,” she said. “They can also help you consolidate your debt.”
Anyone considering debt consolidation should consult with a nonprofit credit counselor before making a decision.
Though taking on debt to repay debt may seem counterintuitive, depending on the interest rate, it may offer a path to consolidation and a much lower interest rate.
A reverse mortgage, which allows a portion of home equity to convert into cash, could be ideal for those 62 and older with significant equity in their home, according to financial planning specialist Rachel Burk. “It can be used to provide an income stream that can cover student loans or credit card debt,” asserts Burk, a financial advisor at Offit Advisors in Columbia, Md.
“This can be a great way to supplement your fixed income and make ends meet,” adds Hawrylack, who also recommends retirees with debt explore additional debt reduction options, including home equity loans and government programs.
For instance, the Social Security Administration offers the Supplemental Security Income program for adults and children with disabilities, providing “extra income to retirees who are struggling to make ends meet,” according to Hawrylack.
For retirees with mounting financial obligations, the idea of paying off debt may seem out of reach. Rather than looking away and continuing to rack up debt, some common-sense measures, like tapping home equity and finding lower interest options, may offer a light at the end of the tunnel.
Seniority is published by Finance of America Reverse LLC. The views expressed in this publication are those of the author alone and do not necessarily reflect the views and opinions of Finance of America Companies. 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.
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