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Misinformation about Reverse Mortgages

The REAL facts about Reverse Mortgages

1.  You never forfeit title to your home, and you retain all your rights as the homeowner.

2.  As long as one borrower occupies the home, and proerty taxes and homeowners insurance are kept current, you cannot be required to leave or sell the home.

3.  You can never owe more than the value of the home, and you cannot leave yourself or your family in debt.

4.  Low interest rates, home appreciation, and how interest is assessed often results in substantial equity remaining untouched, and available to pass on the your heirs.

5.  The proceeds from a reverse mortgage are not taxable, and they will not affect your Social Security or Medicare benefits.

6.  Reverse mortgages can be sued to pay off mortgage balances on your current home, or used in the purchase of a new home that might better suit your needs. In all cases, you will eliminte all requirements to make monthly mortgage payments.

Debt after Retirement

Carrying Debt After Retirement

The New York Times

By LISA PREVOST

If college debt is a hindrance to young adults, mortgage debt is the drag on homeowners heading into retirement.

For news and features on real estate, follow @nytrealestate.

A much higher proportion of homeowners over 65 are carrying mortgage debt compared with past generations. And that debt could make it harder for them to stay in their homes.

The Consumer Financial Protection Bureau estimates that 30 percent of all homeowners 70 and older have mortgages to pay off. In 2001, just 8 percent of owners 75 or older carried mortgage debt, according to the Federal Reserve’s Survey of Consumer Finances, published in 2010.

The trend is noteworthy because the retiree population is about to get bigger. Speaking at a recent forum on the future of housing, sponsored by the National Association of Home Builders, Eric S. Belsky, the managing director of Harvard University’s Joint Center for Housing Studies, said the number of households with people over 65 would increase by nearly 11 million over the next decade.

One repercussion for older borrowers is that they will have to work longer, said Christopher J. Mayer, a professor of real estate at Columbia Business School, who also spoke at the forum. Another likely outcome is a spike in demand for reverse mortgages. This program enables homeowners 62 and older to borrow money using their home equity as collateral. The loan is repaid to the bank, along with interest and fees, after the borrower moves or dies. The funds must first be used to pay off the mortgage, which then frees the homeowner from monthly payments.

Few people take advantage of this option now — only about 70,000 new reverse mortgages are originated each year, according to the Consumer Financial Protection Bureau. Major lenders like Wells Fargo, meanwhile, have exited the business.

But as they struggle to cover mortgage costs along with health care bills, property taxes and home insurance, more older Americans may have to rely on reverse mortgages to remain in their homes.

The amount of mortgage debt they are carrying is not insignificant. As of 2010, the average amount of mortgage debt carried by new retirees was $70,000, according to Alicia H. Munnell, the director of the Center for Retirement Research at Boston College. “In the past,” she said, “people saved their home equity to leave it for their children or some other purpose. I think that’s a luxury many people are not going to be able to enjoy in the future.”

(Mr. Mayer and Ms. Munnell have interests in a new reverse mortgage company, Longbridge Financial; Mr. Mayer is a partner and Ms. Munnell is on the board.)

Buyers of reverse mortgages have not been immune to the unscrupulous practices that put many others into loans they couldn’t afford. Homeowners who don’t understand the complex loan terms, or who can’t maintain insurance and property tax payments, could lose their homes.

Recent rule changes announced by the Federal Housing Administration, which insures most reverse mortgages, require that lenders verify an applicant’s ability to make tax and insurance payments over the life of the loan. And a restriction on the amount that can be taken out upfront may encourage borrowers to use their money more slowly, Ms. Munnell said.

A study of people seeking reverse mortgages could help the government further revise the program. Stephanie Moulton, an associate professor at the John Glenn School of Public Affairs at Ohio State University, is heading a study of 32,000 people who sought counseling for reverse mortgages from 2006 to 2011. Her initial findings will be released in November. But she says her subjects confirm the debt trend: about 60 percent got a reverse mortgage, and about half already had mortgage debt.

New Rules for REVERSE MORTGAGES

New FHA Rules for Reverse Mortgages Borrowers are rushing to lock in reverse mortgages ahead of changes next month intended to strengthen the loan program for seniors but that will also reduce its popularity. "It has been a madhouse," said Helen Taylor, program director at the Northeast Denver Housing Center. "I am getting about 20 to 25 calls a day." Taylor, who conducts the mandatory counseling required to get a reverse mortgage, is hearing from applicants eager to qualify under existing rules rather than the ones coming Tuesday. Those changes, detailed in a letter from the Federal Housing Administration, include a 15 percent reduction in the maximum amount a borrower can access via a reverse mortgage. The FHA will also begin collecting 2.5 The Denver Post's reporters and editors offer news, analysis and commentary on the latest business, real estate, tourism, gambling and technology news in Colorado. percent of the home's value in an upfront mortgage-insurance premium rather than the 2 percent it has charged for those taking out 60 percent or more of their proceeds in the first year of a loan. And starting Jan. 13, borrowers will have to pass a financial assessment to measure whether they can handle insurance and property-tax payments. If not, funds will be set aside to cover those costs and prevent a default. "The changes coming down the pike are huge, and they will change how the business is done," said James Spray, an Arvada mortgage lender who specializes in reverse mortgages for home purchases. Spray expects the changes will cut his business by about a fifth, but he has heard from others in the industry who are expecting much larger reductions and are planning to get out. Reverse mortgages, also known as home-equity-conversion mortgages, allow a borrower to tap their home equity as a monthly payment or a line of credit. The program, around since 1989, is available to people ages 62 and older. A key goal of the reverse-mortgage program is to allow seniors to stay in their homes as long as possible, which has a larger societal benefit, said Rick Garcia, regional administrator of the U.S. Department of Housing and Urban Development's Region VIII, which covers Colorado and five nearby states. The Federal Housing Administration backed 1,072 reverse mortgages in Colorado and 54,676 nationwide in the last full fiscal year, which ended last Sept. 30. Those totals are down by about half from the peak seen in 2009 because of earlier changes in the program and a weaker housing market. Hedging against losses from reverse mortgages is difficult because it requires predicting two things correctly: how long a borrower will hold the loan and the direction of home prices. "We are trying to ensure the longer-term solvency of the fund," Garcia said. In 1990, the average age of a person taking out a reverse mortgage was 76.7. Last year, it had fallen to 71.9. Technically, a reverse mortgage doesn't have to be repaid until the borrower moves out or passes away. But younger borrowers are more likely to move than "age in place," and more of them have gone into default. Because of the unprecedented decline in home values during the housing bust, the FHA has found itself holding the bag for bigger losses than expected, depleting its insurance fund. "They have the new borrowers paying for the sins of the past borrowers," said Donald Opeka, president of Orion Mortgage in Broomfield. In the early days of the program, many borrowers turned to reverse mortgages to free up cash for spending, a use that declined with the equity available in homes. With more people carrying mortgages into retirement, reverse mortgages have increasingly been used to eliminate monthly loan payments, lenders said. Opeka said one client had a $1,200 monthly mortgage payment while collecting $1,400 a month in Social Security, an untenable situation. An inheritance allowed her to take out a reverse mortgage and stop the payments. "She has a chance of living in the house and staying there the rest of her life," he said. Some borrowers use the mortgages as a line of credit that prevents having to tap other money sources when conditions aren't favorable. At the other extreme are those who turn to reverse mortgages in desperation. "Seniors who shouldn't have gotten the mortgage got it," said Jim Veale, a senior vice president with Security One Lending in Lakewood, Calif. Veale said more people are retiring with heavy debt burdens that leave them unable to meet even the most basic requirements of covering insurance and taxes. Their defaults are what have depleted the reserve funds designed to protect taxpayers, although Garcia said the default rates on reverse mortgages are comparable to those on loans under other FHA programs. There had been hope within the industry that the reverse-mortgage program could make it over the hump without a bailout, but Friday the FHA requested $1.7 billion to shore up its long-term finances. Veale said there will need to be a major shift in how the loans are perceived and marketed, not as a loan of last resort but as a financial-planning tool. "We know we won't be able to help the most needy any longer," Veale said.

How Reverse Mortgages Can Benefit Older Divorcing Women

Divorcing later in life is not a new phenomenon, but it is becoming more and more common. Indeed, the increased occurrence of “grey divorce,” as it’s called, has been identified as a significant 21^st century divorce trend:  Even though the overall divorce rate is actually declining, it’s on the rise among older generations.

Those of us in the business of helping people plan for secure financial futures have long known that grey divorce presents a unique set of challenges to our clients. Sure, there is overlap, but women divorcing after long marriages (or brief marriages that began later in their lives) typically face different financial concerns –and may have access to different financial products –than their younger counterparts.
For example, a recent article in The Wall Street Journal (written by Kelly Greene) explains how a loan called a “reverse mortgage” can be a useful financial tool for retirees. This type of loan is becoming increasingly popular because instead of making payments to a lender, the homeowner actually receives monthly payments, increasing the amount she owes. Or, she might opt to receive a lump sum, or maintain a ready line of credit.
The loan (and interest) come due when the homeowner dies, moves out, sells the home, or if property taxes or insurance premiums go unpaid. Typically, the home is sold to repay the loan.

As explained in the article, a reverse mortgage provides a mechanism for homeowners at least 62 years old to borrow against the equity in their home. While there’s no restriction on the purpose of the loan, the funds are commonly used to pay for home repairs or modifications, home health care or medical expenses. However, now that the financial services industry has developed new government-insured products, borrowing costs for reverse mortgages have come down, and these types of loans are becoming basic financial management tools, rather than just last-resort methods to increase cash flow.
So, what does all this mean for the divorcing woman?
Well, for those who are close to 62 years old, the possibility of taking a reverse mortgage loan could represent a new factor to consider when deciding whether or not to keep the house. There are many angles to that decision, including:

• equity and potential resale value on one side,
• maintenance and repair costs,
• property taxes,
• insurance premiums,
• and more!

Even so, the potential utility of a reverse mortgage in your financial plan might tip the balance toward keeping the house. Discuss it with your divorce financial planner.
For women whose divorces are behind them, a reverse mortgage might represent a new strategy for making their settlements last as long as possible. For example, using a reverse mortgage to provide cash income during retirement could save you from having to sell temporarily depressed investments. In the event of a drop in the market, payments from a reverse mortgage can be used to cover expenses until the value of your investments sufficiently rebounds.
The Wall Street Journal reports that taking a reverse mortgage can also have implications for your tax bill, and for configuring your potential Social Security income. You may be able to limit your income tax exposure by using cash flow from a reverse mortgage, rather than taxable withdrawals from a 401(k) or other retirement investment, to pay off a traditional mortgage or other debts. If you can delay taking Social Security by using a reverse mortgage as a source of income, you can increase the monthly payment you will eventually receive.
Used judiciously, a reverse mortgage can be a very useful part of the divorcing or divorced woman’s financial strategy, and as a Divorce Financial Strategist™ , I recommend you see how this financial tool might best serve you. The Consumer Financial Protection Bureau is an excellent place to get more information before you look for a lender. If you decide to pursue such a loan, be especially wary of “advisors” who try to steer your reverse mortgage payments into expensive or risky investments. As always, it’s best to be well-informed, and well-advise.
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What is Plexus Slim?

Six Things you should know about Social Security

by Jennifer Grey, HousingForSeniors.com Columnist | July 19, 2012 | 

If you’re like many people in the US who are close to retirement age, chances are you’ve been spending the past few years worrying about your 401(k), IRA, and other invested retirement accounts—and using them to plan for retirement. But Social Security is likely to make up a large part of your post-retirement income—approximately 50% of married retired couples receive about half their income from Social Security, and high-earners receive about 20% of their retirement income from it. Here are a few key things you should know about Social Security.

Social security is stable—but hard to plan around

Planning for retirement isn’t easy. But you can count on Social Security. Bear in mind that you will get a bigger payment if you can wait to withdraw, and don’t let worries over a reduced payment stop you from working.

Unlike your 401(k) and IRA, your Social Security income is guaranteed to last for the rest of your life—and stay abreast of inflation. It won’t be hurt by fluctuations in the market, and you aren’t likely to suffer a huge income loss based on an economic downturn. Those are the good points.

However, determining how much you’ll get—and how to get the most possible—can be tricky. The amount you get per month depends on the age you retired, how much you and your spouse earned over your working lifetime, and whether you still work even though you’re retired. It’s a complicated equation for everybody.

Social Security will be there when you retire

Despite what politicians often say about the system hemorrhaging money, it’s highly unlikely Social Security will go away anytime soon. Money coming in from payroll taxes will cover all benefits until 2016, even if the current system isn’t changed. The Social Security Trust Fund is there to support the system as well, and if no more money comes in, the fund’s Treasury bonds would cover payments until about 2037. Even if that runs out, payroll tax income could conceivably cover about 75% of what you shofuld get in benefits for decades to come after that.

So even if the government does nothing to support Social Security, it’s not very unlikely your benefits will disappear. However, the Obama Administration has shown signs of interest in strengthening the system in the future—by leveraging Social Security taxes on people who earn over $200,000, for example.

You can get some of your spouse’s payment

There are situations where you can qualify to receive Social Security payments for your spouse. If your spouse dies, you can receive up to 100% of his or her Social Security benefits, as long as they’re higher than your own payments. You may also be eligible for these benefits if you’re divorced.

It can be better to wait

You can start drawing your Social Security benefits at age 62. However, the longer you wait to collect Social Security, the bigger your monthly check will be. That said, most people begin collecting before retirement age, which is currently at 66. If you can wait, you’ll have a bigger monthly check as your other retirement savings are starting to diminish—which can be a big help.

If you’re married, however, it gets more complicated. Some spouses qualify for spousal benefits, and it can be more effective for the higher-earning spouse to wait as long as possible while the lower-earning spouse should take out their benefits earlier.

You can actually raise your payments by working while retired

But only up until full retirement age. Before you hit that age, the federal government will reduce your payments by $1 for every $2 you earn over a specific annual limit—which is currently set at $14,160. However, you don’t lose that money permanently. Social Security will compensate you once you hit full retirement age for the money withheld before then. And that higher payment will go on for the rest of your life, no matter how long you worked.

You can also raise your Social Security earnings if you earn a higher wage while you’re drawing Social Security. That’s because the amount you receive is calculated based on the 35 highest wage-earning years you had. Potentially, you could earn a higher wage in retirement than you did in one of the other 35 years, boosting your payments again.

Your Social Security benefits may be taxed

Approximately a third of people who receive Social Security pay income taxes on their benefits—and it’s projected that as much as 42% will by 2018. You are less likely to pay taxes—or can reduce your taxes—by waiting until full retirement age to claim your benefits.

Planning for retirement isn’t easy. But you can count on Social Security. Bear in mind that you will get a bigger payment if you can wait to withdraw, and don’t let worries over a reduced payment stop you from working. Talk to a financial advisor about how Social Security should be factored into your retirement plans, and hopefully you’ll be able to get the most from your benefits.
 

Older and Wiser

No more Social Security at 62?

By Jennie L. Phipps · Bankrate.com

Sunday, June 2, 2013

Posted: 7 am ET

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The Social Security Board of Trustees released its annual report Friday on the financial health of both the retirement and the disability trust funds.
The report projected that the retirement trust fund will be depleted in 2033 -- unchanged from last year's projection. It said that unless Congress acts, at that point the program will be able to pay only 77 percent of promised benefits from ongoing contributions. The disability trust fund will be depleted much sooner -- in 2016 -- when the program will be able to pay only 80 percent of promised benefits.
Other statistics from the report that you might find interesting include:

• More than 57 million people were receiving Social Security by the end of 2012.
• In 2012, approximately 161 million people paid payroll taxes on earnings covered by Social Security.
• The total money held in reserve by the program rose by $54 billion in 2012 to $2.73 trillion.
• The cost to administer the program in 2012 was 0.8 percent of total expenditures, a total of $6.3 billion.

A few days prior to this announcement, Donald Fuerst, senior pension fellow at the American Academy of Actuaries, testified before the U.S. Congress about Social Security's pending shortfalls. He said that in 1940, when the new Social Security Administration began paying monthly retired-worker benefits, the retirement age was 65. At that time, workers who survived to age 65 had a remaining life expectancy of 12.7 years for men and 14.7 years for women. By 2011, life expectancy at age 65 was 18.7 years for men and 20.7 years for women, an increase of six full years for both.
In 20 more years, life expectancy at age 65 for men is expected to be more than 20 years and more than 22 years for women, Fuerst pointed out.
The bottom line: If something doesn't change, we won't have enough money to pay the Social Security that is promised, a retirement planning disaster.
Fuerst offered Congress several suggestions for fixing this problem. His most controversial idea is probably raising the minimum age for collecting Social Security from 62 to at least 64.
Here's what he'd also do to make an increase in retirement ages less painful for workers:

• Gradually phase in any change over an extended period of years, even decades, to allow for more time for society to adapt to the new work-life reality. "Give people time to plan and prepare. You wouldn't want to change it for someone who was planning to retire the next year. None of us would consider that fair," Fuerst says.
• Reduce benefits for higher-paid workers. "Wealthier socioeconomic groups recently show more longevity improvements than poorer socioeconomic groups," Fuerst points out.
• Revise the Social Security disability program. Make the requirements more lenient for people between ages 62 and full retirement age, so those in occupations that involve physical labor wouldn't have to continue to work at jobs they couldn't physically do.
• Cut or eliminate the wage tax for both employers and employees for people between ages 62 and full retirement age. It would give an incentive to both groups to keep older workers on the job.

Will a plan this complex and drastic ever wend its way through Congress? Fuerst thinks it should, but he isn't optimistic. "It isn't going to be easy; there are too many competing interests," he says.

Read more: http://www.bankrate.com/financing/retirement/no-more-social-security-at-62/#ixzz2dHKSeKs5
Follow us: @Bankrate on Twitter | Bankrate on Facebook

Are reverse Mortgages the Answer for the Elderly?

Is a reverse mortgage the answer for elderly homeowners

Sunday, August 25, 2013 10:13 PM EDT

By Daniel O. Tully

Dear Attorney Tully: I am a widow and I see a lot of ads on TV regarding reverse mortgagees. It sounds great, but I am not sure. I would like to stay in my own home and am not interested in selling, but my health is failing. I could use extra money to help with my health care costs. What do you think?

ANSWER: With any financial and legal transaction you should take your time and consider the pros and cons. Do your homework and don’t let anyone put the hard sell on you. The reverse mortgage program is becoming more popular and accepted by seniors. In a nutshell, a reverse mortgage is a way to use the equity in your home and not have to make a monthly payment as long as you live in your home. Under our “system” of paying for a long term care, you may be able to qualify for Medicaid to pay for nursing home care, but in most states there’s little public assistance for home care. Most people want to stay home as long as possible, but few can afford the high cost of home care for very long. One solution is to tap into the equity built up in your home.

If you own a home and are least 62 years old, you may be able to quickly get money to pay for long term care (or anything else) by taking out a reverse mortgage.

Reverse mortgages, financial arrangements designed specifically for older homeowners, are a way of borrowing that transforms the equity in a home into liquid cash without having to either move or make regular loan payments. They permit house-rich but cash-poor elders to use their housing equity to, for example, pay for home care while they remain in the home or nursing home care if it becomes necessary. The loans do not have to be repaid until the last surviving borrower dies, sells the home or permanently moves out.
In a reverse mortgage, the homeowner receives a sum of money from the lender, usually a bank, based largely on the value of the house, the age of the borrower and current interest rates.

For most loans you need to qualify with your income and assets. This is not the case with reverse mortgages.  Homeowners can get money in one of three ways (or in any combination of the three): in a lump sum, as a line of credit that can be drawn at the borrower’s option or in a series of regular payments, called a reverse annuity mortgage.

Although it is often assumed that seniors would want to use the funds from a reverse mortgage loan on health care, there are no restrictions — the funds can be used in any way. For instance, the loan could be used to pay back taxes, for house repairs or to retro-fit a home to make it handicapped accessible.

Borrowers who take a reverse mortgage still own their home. What is owed to the lender — and usually paid by the borrower’s estate — is the money ultimately received over the course of the loan, plus interest. In addition, the repayment amount cannot exceed the value of the borrower’s home at the time the loan is repaid.  All borrowers must be at least 62 years of age to qualify for most reverse mortgages.

In addition, a reverse mortgage can be taken out if there is prior debt against the home. Either the old mortgage must be paid off before taking out a reverse mortgage or some of the proceeds from the reverse mortgage used to retire the old debt.

Attorney Daniel O. Tully is a partner in the law firm of Kilbourne & Tully, P.C., members of the National Academy of Elder Law Attorneys Inc., with offices at 120 Laurel St., Bristol, (860) 583-1341. If you have a questions for attorney Tully, send it to him at Kilbourne & Tully, P.C., 120 Laurel St., Bristol, CT 06010. He’ll filter through the questions and may use some as the basis for future columns.

Comments

Handling a mortgage AFter a relative's Death

DebtAdviser: Handling mortgage after relative's death

By STEVE BUCCI bankrate.com (AP)

Monday, August 26, 2013

Dear Debt Adviser: My husband died and left a house with a mortgage payment. My name is not on the paperwork as a co-signer, but I do live in the house. This was on purpose. I was kept out of the mortgage so I wouldn't be held responsible if something happened to my husband. Now something's happened, and I'm not sure what I need to do to keep the house. I have not told the mortgage company of my husband's death, though I have been trying to keep paying the bill. What should I do? Do you have any advice for paying a mortgage after the death of a loved one? -- Linda
Dear Linda: I'm sorry to hear that your husband passed away. I'm doubly sorry that you're now stuck in a financial bind. You're not alone, unfortunately. Women tend to outlive men, yet many fail to plan for this eventuality.
Here are some suggestions for people in your situation.
In the best of worlds, your husband would have had mortgage insurance or a life insurance policy that would allow you to pay off or pay down the home loan. From the tone of your question, I gather this is not the case. Because of the potential complexity of your remaining options, I want you to speak with an experienced real estate attorney to help you decide how to proceed.
Here are some options to consider.
If your name is on the deed or if you are left the house in your husband's will, you may be eligible to assume the mortgage under the Garn-St. Germain Depository Institutions Act of 1982. This law limits a lender's ability to foreclose on an up-to-date mortgage when the owner of the property changes. It doesn't mean that the lender won't try to tack on a fee when it shouldn't. If you are a surviving joint tenant, or if the title was transferred by inheritance to a related owner-occupant, the Garn-St. Germain law bars the lender from enforcing the due-on-sale clause. Your attorney will help you sort out all these possibilities. This option would only work for you if you can afford to continue making the payments.
You may want or need to refinance the mortgage to get a better rate, extend the term and lower the monthly payment. This would allow you to stay in the house if it was left to you. If your credit is damaged, or if for some other reason you can't qualify for a mortgage on your own, you have a couple of other options. If you can afford the payments, consider asking a family member to co-sign with you.
A reverse mortgage might work. There is no credit or income criteria needed to qualify, though you must be at least 62 years old. Also, you'd need to have a mortgage balance of around half of the home's value or less. With a reverse mortgage, you could stay in the home without worrying about paying additional mortgage payments. A reverse mortgage may even allow you to take some equity out of the home while you are living there. Learn more about reverse mortgages at the U.S. Department of Housing and Urban Development's website, www.hud.gov.
If none of these options work for you, you may need to sell. You could use any proceeds to find a suitable new property or rental. If your name is not on the deed and the home was not willed to you, then the sale's proceeds would go to your husband's estate. What happens from there would be up to the laws of your state.

Seniors Rank Finances and not health as a concern

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Seniors Rank Finances, Not Health, as Top Retirement Concern

August 12th, 2013  |  by Alyssa Gerace Published in News, Reverse Mortgage

Americans aged 60 and older are more likely to be concerned about the sufficiency of their finances rather than a deterioration in health, according to a recent national survey.
More than half of respondents (53%) say they are concerned about whether their savings and income will be sufficient to last them for the rest of their lives, while another 33% were not concerned, according to the 2013 United States of Aging Survey, conducted by the National Council on Aging, UnitedHealthcare, and USA Today.

Among retired seniors, 43% relied on Social Security as their primary source of retirement income. More than four in ten (41%) of non retired seniors planned to rely on Social Security in retirement.
Despite future fears, most respondents reported no difficulty in affording current expenses.
For 66% of respondents, it’s “easy” to pay monthly living expenses, and only 18% reported the need to reduce regular spending in 2012 in order to pay a monthly regular bill.
However, nearly two in ten (19%) said it was “difficult” to afford monthly living expenses, based on current income and savings.
Six in ten seniors believe their health will stay the same in the next 5-10 years, the survey said. Another 13% think their health will improve, while less than a quarter (23%) predict their health will worsen during that timeframe.
While seniors believed their health wouldn’t change much in the upcoming decade, many aren’t doing anything to manage existing conditions or maintain good health.
Nearly two in ten (18%) seniors reported having five or more chronic health conditions, while 65% reported having two or more. However, more than half (51%) haven’t set any specific goals to manage health in the past year, while 43% have taken no steps toward preventing falls.
Access The United States of Aging Survey.

Plexus Slim "The Pink Drink" For Weight Loss Explained

Plexus Slim Intro - My new business

Strategic planning workbook for Non-Profits

Fast Track Strategy Planning Workshop for Non-Profits

This is a great tool for Non-profit boards to help them plan for success. Please feel free to print this out and use it for your planning sessions.  Best of luck in whatever project you're are working on.

Our MISSION is:  (our reason for existing and for whom)

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2.  Assumptions:  (This is our buy-in)

If not achieved:  (what happens)

a.____________________________________________________

b.____________________________________________________

c.____________________________________________________

d.____________________________________________________

3. Vision it possible!!

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. Our VALUES!

_________________________________________________________________________________________________________________________________________________________________

5. Beneficiaries of our services:  (who benefits and how)

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Who Else benefits and how:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. “SWOT” analysis: 

Strengths:  (internal)

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Weaknesses:  (internal)

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Opportunities:  (External)

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Threats:  (External)

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

7.    Issues and obstacles to our success:

1.     _________________________________________________

2.     _________________________________________________

3.     _________________________________________________

4.     _________________________________________________

5.     _________________________________________________

6.     _________________________________________________

7.     _________________________________________________

8.     _________________________________________________

9.     _________________________________________________

10.                       _____________________________________________

11.                       _____________________________________________

12.                       _____________________________________________

8.    Vital Signs to measure our progress, and why:

a._________________________________________________________________________________________________

b.________________________________________________________________________________________________

C.________________________________________________________________________________________________

d.________________________________________________________________________________________________

e._________________________________________________________________________________________________

f._________________________________________________________________________________________________

9.    Critical Success factors:

1.  ____________________________________________________________________________________________________________

from___________________to____________________________

Who’s responsible:____________________________________

Goal: ____________________________________________________________________________________________________________

Goal:

____________________________________________________________________________________________________________

Goal:

____________________________________________________________________________________________________________

CRITICAL SUCCESS FACTOR

FROM ___________________TO______________________

WHO’S RESPONSIBLE:_____________________________

Goal:

______________________________________________________

Goal:

Goal:

____________________________________________________________________________________________________________

Critical Success factors

____________________________________________________________________________________________________________

From:_____________________________to:_________________

Who’s responsible______________________________________

Goal:

____________________________________________________________________________________________________________

Goal:

____________________________________________________________________________________________________________

Goal:

____________________________________________________________________________________________________________

10.                       Goals. . . solutions. . . actions . . . timing

Use separate paper for this purpose to explain in detail

For EACH CRITICAL SUCCESS FACTOR

IDENTIFY EACH GOAL

THEN  LIST SOLUTIONS (OBJECTIVES)

THEN LIST ACTION STEPS NEEDED TO ACCOMPLISH THE SOLUTIONS

THEN IDENTIFY THE NECESSARY TIMING REQUIRED.

REPEAT THIS PROCESS FOR EACH CRITICAL SUCCESS FACTOR.

11. RESOURCES WE HAVE . . .RESOURCES WE NEED

RESOURCES WE HAVE:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

RESOURCES WE NEED:

Development dollars required . . . and for what projects

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

RESOURCES WE NEED:

CAPACITY BUIDING REQUIRED:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

11.  IMPLEMENTATION REVIEW

WHO:__________________________________________________________________

WHAT:_________________________________________________________________

WHEN:_________________________________________________________________

HOW:__________________________________________________________________

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Let’s Champion the Cause of:   (in 5 words or less)

______________________________________________________________!!!!!!!

Let’s begin to implement our strategy plan!!!!!

Any questions from the process used to develop the plan?

We should all feel relief and pride.  We have prepared and crafted a strategy plan.  From this there is hope, excitement, challenge, and now there is the need for hard work on the execution side.

Vision means change.  People resist change.  Without extraordinary measure from this point forward, this great plan may not succeed.

What can we do to assure its success? (some tips)

1.     Attach it to your office wall.

2.     Follow-up, follow-up, follow-up

3.     Reschedule due dates as necessary

4.     Add, change, and adjust actions steps as needed.  Add new due dates as required.

5.     Create an accountability system.

6.     Create an incentive program to honor small successes, and certainly bonus opportunities for winning challenges.

7.     Celebrate accomplishments along the way

      8.  You  may want to hire an implementation partner from the outside who is knowledgeable in assisting non profit organizations with executing their strategy plans.  They have been down this road many times. And know the land mines that exist along the way.  They will challenge you to stay the course, and will help you to pave the way to victory.

Baby Boomers want to MOVE!!!!!!

It's a fact that there are tens of thousands of people are turning 62 everyday.  If this is you or will be you soon keep reading.  According the Fidelity investments research study almost 40% of the baby boomers would like to move sometime during their retirement years.  Preferably to a warmer climate.  Even though they would like to move they currently  feel trapped by their financial situation.

Have your investments taken a beating?  Has your home value plummeted by 50% or more?  Has your dreams of buying a new retirement home vanished?  With countries like Greece going bankrupt it's directly affecting the retirees here in the U.S.  Here at home our county is trillions of dollars in debt and economist warn it's likely to get worse.  The fact is that many new retirees feel hopeless and stuck. Not being able to live out their retirement dreams.

I'm a specialist in helping people to understand how to purchase real estate with no monthly payments and without paying all cash down.  Not only that but I can show you how you can eliminate a mortgage payment.  You can sell your current home and get enough to purchase another one outright.  You probably have assets in your retirement account you could withdraw, but because they have less value than a few years ago you hate to pull it out now and need to really wait for a come back.  All this isn't your fault.  Like many you were a victim of tough economic times.  Some people are enjoying the retirement dreams right now.  They have purchase a retirement home and did it all without having a monthly mortgage payment and not paying for it with all their cash.

The HECM for purchase is a popular way to purchase a home - sell the family home that is now to big - or make needed repairs.  This is a easy way for you to capture the equity from your existing home and to take advantage of the wealth you've built with no income, assets or credit required.  However you cannot have any bankruptcies or tax liens on your record.  This is a huge opportunity for you to make your retirement dreams come true.

Have you ever imagined rental income to supplement your income?  You can do a reverse on your current residence and purchase rental property.  The rental property will create a positive "cash flow", without having to make a payment on it.

So to review, Baby boomer are more active and vibrant than the generations before them.  They can expect to live a very long life into retirement.  This HECM for purchase program was specifically designed with the baby boomers in mind.  Call me today at 314-220-3918 for a FREE quote and learn how you can move or create more income.  You can also visit my website at www.reversemortgagesspecialist.com.

Current Outlook for Boomer Retirees

Have Boomers set aside enough funds for retirement?  Researchers are suggesting their savings are not sufficient.  Relying on Social Security is not a good idea because of its impending insolvency.  The overall outlook for aging baby boomers appears grim.

Millions of Americans are still facing a dismal outlook when it comes to their own ability to retire.

Statistics to support current retirement conditions:

1.  The expected retirement age is now up to 67 from a previous 63

2.  According to AARP 40% of baby boomers consider working until they die

3.  The Employment Benefit Research Institute notes 46% of Americans have less than $10,000

     saved for retirement.

4.  Lifehappens.org reports a dismal 87% of adults feel they will not have a comfortable

    retirement.

5.  CNBS recorded 36% of Americans state they don't contribute anything to their 

     savings by an average of $117,000

6.  Ameriprise surveyed 50 - 70 year olds about their cash savings and found that

    90% had experienced a significant economic life event that negatively impacted

    their retirement savings by an average of $117,000.

7.  The Great recession created low interest rates which impaired the growth

    of retirement assets

8.  The market has declined by 55% and home equity 33% while 23% reported having

     to support grown children or grandchildren

Why has American retirement dreams been depleted?

Most respondents to the surveys point to increasing cost of living expenses preventing them from saving.  Included in the saving problem is rising healthcare and long-term care expenses.

In addition to the rising expenses it the fact that the dollar doesn't go as far as it once did because of practices by the Federal Reserve.

Putting money in the bank is probably the largest retirement mistake.  Inflation destroys 50% if you let it stay there for 22 years.  Your money has to work for you, not the bank.

The traditional forms of investment like CDs, bonds and money markets pay less than 85% less than they did just six years ago.

Tax increases implemented by the Obama Administration further complicates matters.

The United States retirement system has earned a "C" rating from the consulting firm Mercer, as compared to the "A" grade Denmark received and the Netherlands' retirement system's B+ rating.  The study further shows that other countries are willing to make unpleasant steps by workers and employers to fund a stable system.

The United States Social Security trust fund is expected to become insolvent in 2033.

As Social Security dwindles, retirees will need to look at other resources like home equity to fund their retirement.

For the first time in history less money will be available and alternative sources of income will need to be established.

Despite a drop in home values since the recession 21% of Americans expect to rely on the equity built up in their homes as a source of income.

Attempting to retire without social security requires a lot of planning, saving and investing.  It's important to plan well to create a successful retirement plan.

How to use Home Equity for retirement

Aging in Place model home being built

Some Aging in Place design elements included in an Aging in Place home include  convenience, safety and comfort for senior residents who want to remain in their home.
In Neenah, Wisconsin The CareGiver Partnership is launching a model home project that includes an automation system, environmental sensors, motion sensors, fall prevention tools and mobility features geared specifically toward the needs of older residents.
There are thousands of baby boomers turning 65 everyday and there is a severe shortage of affordable long-term care facilities and trained caregivers.  That is why Aging in Place is so important.
Many service providers, builders and manufacturers are adjusting to this growing market and developing programs to help people remain at home as long as possible.
The home in Wisconsin is scheduled to be completed on November 1 and serve as a demonstration for anyone interested.
More Aging in Place Articles

Frequently Asked Questions about HUD's Reverse Mortgages

Frequently Asked Questions about HUD's Reverse Mortgages

The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program, which enables you to withdraw some of the equity in your home.  The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.  You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, "Use Your Home to Stay at Home," a guide for older homeowners who need help now. It is smart to know more about reverse mortgages, and decide if one is right for you!
1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  However, unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
2. Can I qualify for FHA's HECM reverse mortgage?
To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online or by phoning (800) 569-4287.
3. Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
Yes.  You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.
4. What types of homes are eligible?
To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.
5. What are the differences between a reverse mortgage and a home equity loan?
With a second mortgage, or a home equity line of credit, borrowers must have adequate   income to qualify for the loan, and they make monthly payments on the principal and interest.  A reverse mortgage is different, because it pays you – there are no monthly principal and interest payments.  With a reverse mortgage, you are required to pay real estate taxes, utilities, and hazard and flood insurance premiums.
6. Will we have an estate that we can leave to heirs?
When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid.  All proceeds beyond the amount owed belong to your spouse or estate.  This means any remaining equity can be transferred to heirs.  No debt is passed along to the estate or heirs.
7. How much money can I get from my home?
The amount you may borrower will depend on:

• Age of the youngest borrower
• Current interest rate
• Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
• Initial Mortgage Insurance Premium--your choices are HECM Standard or HECM SAVER

In addition, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.  If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.  For an estimate of HECM cash benefits, select the online calculator from the HECM Home Page. Many online reverse mortgage calculators can provide you with an estimate of the amount of funds you can borrow.
8. Should I use an estate planning service to find a reverse mortgage lender?
FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender.  You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting a HECM counselor for a listing.   Services rendered by HECM counselors are free or at a low cost.  To locate a HECM counselor Search online or call (800) 569-4287 toll-free, for the name and location of a HUD-approved housing counseling agency near you
9. How do I receive my payments?
You can select from five payment plans:

• Tenure- equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
• Term- equal monthly payments for a fixed period of months selected.
• Line of Credit- unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
• Modified Tenure- combination of line of credit and scheduled monthly payments for as long as you remain in the home.
• Modified Term- combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

 10. What if I change my mind and no longer want the loan after I go to closing?  How do I do this?

By law, you have three calendar days to change your mind and cancel the loan.  This is called a three day right of rescission.  The process of canceling the loan should be explained at loan closing.  Be sure to ask the lender for instructions on this process.  Mortgage lenders differ in the process of canceling a loan.  You should ask for the names of the appropriate people, phone numbers, fax numbers, addresses, or written instructions on whatever process the company has in place.  In most cases, the right of rescission will not be applicable to HECM for purchase transactions.

Pinterest - Skinny snacks

Pinterest  - check out the skinny snacks

Bark Park at Unger Dog Park - Please vote for our park

We are attempting to build the FIRST dog park in a St. Louis County Park - We need this money to get us started - Please take a minute and VOTE for us.  Our website is www.barkparkatunger.com  Check us out.

Bark Park at Unger Dog Park