Aging Parents and their Money

Do you know how to talk to your aging parents about their money?

It's always about independence, something seniors do not want to lose.  So when do you approach this topic? Have you seen the bills piling up on their table?  Have they fallen prey to telephone or internet scams?  This is a delicate subject and most people do not want interference in their financial affairs.  Here are some rules that  you need to follow.

1.  Don't adopt an attitude that you know it all.  

2.  Don't say "you should" - it will put them on the defensive

3.  Invite a third party expert who they will respect

The following are ideas that will help ease into the conversation:

1.  "Mom and/or Dad", I recently read a great article about how to simplify your finances as you get
      older.  Would you like to talk about it. (Be a helper not an overseer)

2.  "Have you heard about this scam, I heard about it and thought I should warn you and your friends."
      (be straightforward)

3.  "How would you like to save some money on your phone bill?" Let's take a look at that.
      (Utilize small actions that succeed)

4.   "Do you ever receive invitations to free-lunch retirement seminars?"  If so I would like to go with you.
      (Don't discourage attendance simply stand beside them)

5.  "You wouldn't have surgery without a surgeon."  The same goes for your finances.  Let's find a financial
      advisor to help you.  (Seniors respond better to stories and metaphors that gives meaning to facts
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314-556-4100

      and linear data)

Aging in Place and Reverse Mortgages

Aging in Place! 

Have you noticed that stairs are getting steeper?  Groceries are heavier and more expensive.  And, everything is farther away. Yesterday I walked to the corner and I was dumbfounded to discover how long our street has become!  This extension work was apparently done at night!! Very sneaky stuff.  And, you know, people are less considerate now, especially the youngsters. They speak in whispers all the time! If you ask them to speak up they just keep repeating themselves, endlessly mouthing the same silent message until they're red in the face! What do they think I am, a lip reader

On the other hand, people my own age are so much older than I am. I ran into an old friend the other day, and she has aged so much that she didn't even recognize me.

I got to thinking about the poor dear while I was combing my hair this morning, and in doing so, I glanced at my own reflection........ Well, REALLY NOW - even mirrors are not made the way they used to be!

I tried to climb into the tub this morning and my legs must have shrunk overnight. My leg just wouldn’t lift high enough to make it over the side.  Oh well – there’s always tomorrow.

So, I called my kids to see if they would lend me money to get me a hearing aid so I could hear them when they spoke, get my house remolded so I could get into the tub or just pay off my mortgage so I could have extra money for the casino.  We were suddenly disconnected and I haven’t heard from the sense.

Determined to take matters into my own hands I asked several people if they knew what I could do.  One of them recommended maybe it’s time to check into the old folks home.  Really the Old Folk home – That’s for old folks – not me.  I want to stay in my own home.

My best friend told me she knew of someone that could help me.  So she gave me the name of a reverse mortgage specialist. I called her and couldn’t believe what I heard.  She said should she would help me get rid of my mortgage payments, get my home remolded so I could get into the tub, pay for hearing aids and even have a line of credit that grew by 4% per year for expenses. 

You know what they say about things that are to good to be true.  I wasn’t falling for that nonsense.  So I checked it out. 

I asked many of my friends and they said – OH NO – that’s a bad deal.  I asked them WHY?  Funny no one really knew why. 

So after further investigation I discovered this is an FHA loan designed by the government to help people “Age in Place”. 

   Aging in Place – I had never heard of that – but it sounded great to me.  I can use my own money to stay in my own home.  No asking my kids for money or going to the old folks home. 

Best of all – the house remains in my name and is passed on to those kids that aren’t speaking to me.  The money I receive is “TAX FREE”.

If I decide to downsize to a smaller residence with less maintenance like a Villa, I can do a REVERSE TO PURCHASE.  I can get a $200,000 home by bringing $100,000 from the sale of my home.  That frees up $100,000 to do with whatever I choose. 

I’ll show all you guys – I’m going to do a reverse mortgage and stay in my home.  Be careful if you try to sneak up on me because now I will be able to hear you coming.

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314-556-4100

Using reverse mortgages properly

Using reverse
mortgages properly: Last week, I introduced you to reverse mortgages, which are designed to allow you to access the equity in your house, while continuing to live in your home without ever having another mortgage payment. 
Call me for more information at 314-220-3918 or visit my website at www.reversemortgagesspecialist.com

DianeQuitmeyer CustomizedReverseMortgages

www.reversemortgagesspecialist.com or call 314-556-4100

Reverse Mortgage Expert: Ideas for creating a successful retirement

Reverse Mortgage Expert: Ideas for creating a successful retirement: After the kids have left home parents find themselves with extra money to spend.  This time can provide a bit of financial freedom that ccontinue to live in your home. 
www.reversemortgagesspecialist.com or call 314-220-3918

Ideas for creating a successful retirement

After the kids have left home parents find themselves with extra money to spend.  This time can provide a bit of financial freedom that can lead to overspending, that could jeopardize retirement.
Below are a few ways you can avoid overspending and prepare you for retirement.

1.  Whenever possible pay cash - once a week withdraw money 
      from the back and use that as your budget.  Using cash for
      purchases reduces the likelyhood of overspending.

2.  Maintain a financial journal - track daily expenditures - write 
     down all your monthly expenditures.  Review your activity
     to see where anything could be saved.

3.  Limit luxury spending - It's easy to reward yourselves with
     luxury items - this may spread finances to thin - determine
     whether or not it's a luxury or necessity before you purchase.

4.  Senior discount to save $$$$ - Many companies offer senior
     discounts including gyms, restaurants, movie theaters etc.  
     The savings can add up over time.  You can cash in on
     your lifelong experiences and no one has to know!

More retirement information
www.reversemortgagesspecialist.com
314-556-4100 

Reverse Mortgages: 3 Ways you can Tap Home Equity

Reverse Mortgages: 3 Ways You Can Tap Home Equity to Enhance Your Retirement

By Gerri Detweiler

You may have heard of reverse mortgages as a way for seniors to tap the equity in their homes to pay for living expenses, but there are other ways that homeowners are using their homes to get by.

Many seniors are on fixed incomes, with Social Security payments providing a significant portion of their monthly income. In fact, Social Security provided at least half of total income for more than half of aged couples and nearly three-quarters of non-married beneficiaries in 2010. And it provided 90 percent or more of income for 23 percent of aged beneficiary couples and 46% of aged nonmarried beneficiaries. The average monthly benefit at the beginning of 2012 was $1230. It's no surprise, then, that reverse mortgages are often used to help cover essential living expenses.

What you may not have heard, though, are some of the creative ways homeowners are using reverse mortgages to help them navigate today's challenging economy. I recently interviewed Russell Silver, senior residential mortgage consultant for US Mortgage Corporation, on my radio show "Talk Credit Radio." (The firm also sponsors some of the show's podcasts). Following is an edited excerpt from that interview.

First, the basics. "A reverse mortgage is a federally-insured mortgage, only available to homeowners 62 years or older," explains Silver. "Basically a reverse mortgage is just what it sounds like: You do not make payments. As long as you own your home you're not obligated to make any mortgage payments, you're only required to pay your taxes and your homeowner's insurance."

"If you have a mortgage on the property currently and do a reverse mortgage, the old mortgage is paid off, and a new reverse mortgage is put in place. Whatever you want to use the money for, you can use it and nobody's going to tell you what you can do and can't do with the money."

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Here are some ways his clients, and other homeowners, are using reverse mortgages:


1. Have a say in how your heirs spend their inheritance.

If you're like many seniors today, the equity in your home will be a major part of the inheritance you leave your heirs. As much as you hope that money will be put to good use, there's often a nagging worry that it will be wasted. Maybe you're worried that your granddaughter will use it for that plastic surgery she's been hinting about. Or that your money will end up in the hands of your son's freeloading girlfriend.

Or maybe you'd just like to see your kids and grandkids enjoy your money now rather than after you are gone. A reverse mortgage may help you accomplish that. Silver explains:

I can't even tell you how many grandparents or even parents we speak to that want to take out a reverse mortgage to help out their kids. A lot of people use it for their kids' or grandkids' college educations. One couple took their entire family on a cruise for their 50th wedding anniversary. It was something they never ever would have been able to do otherwise.


2. Take care of yourself.

It's no secret that rising health care costs are squeezing many seniors' budgets. You, your parents or grandparents may worry about the costs of prescriptions and copays, and be downright terrified that you won't have the money you need for more intensive care. Silver explains how some are using a reverse mortgage to fill the gap:

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One of the most important things that clients are using these loans for is long-term health care. When you get older, you might want to live out the rest of your life in your home, and maybe get a home attendant or nurse.

It's very easy for the kids to say 'don't worry, we'll take care of you' but when people get sick, you have not only the expense but are you able to take time off from work, to care for people? It's not easy especially if you have family where maybe mom and dad lived in Florida but the kids are up north. How is this going to be done?

One of our clients lives quite a distance from her daughter and decided to get a reverse mortgage so she can ensure her health care needs are taken care of without becoming a burden to her daughter.

Some homeowners use the proceeds of a reverse mortgage to purchase long-term health care insurance or to hire the help they need to stay in their homes.


3. Get out of foreclosure.

It sounds counterintuitive that someone who is in foreclosure can use a reverse mortgage to get out of foreclosure. But Silver says it's being done all the time. He explains:

One of the great things about the way the government set this program up is that there are no credit requirements. You can be in foreclosure or you may just have completed a bankruptcy, and you can still qualify.

Basically, this works for someone who has equity but can't afford to make the payments anymore. They take out a mortgage that will pay off the bank that's foreclosing. And now they go forward with no payment for the rest of their life, as long as they live in that house. (Homeowners must continue to pay taxes – if required – and insurance, however.)

We speak to so many bankruptcy attorneys, foreclosure attorneys, real estate attorneys or financial planners or accountants that have clients that really are in trouble at this point and they need help and this is a great way out."


Educate Yourself

To help protect seniors, the government instituted mandatory, independent reverse mortgage counseling. Anyone considering a reverse mortgage must get this counseling before obtaining a reverse mortgage.
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314-220-3918