The Problems With Reverse Mortgages
|
|
- Kelly Parrish
- 5 years ago
- Views:
Transcription
1 The Problems With Reverse Mortgages On Monday, we discussed the nuts and bolts of reverse mortgages. On Wednesday, Josh Mettle went into more detail with some of the creative uses for a reverse mortgage. Today s post is going to be more critical about them. Now, you need not assume by this post that I have anything against you using a reverse mortgage or that I think they are a bad product and those who sell them should get some cement shoes. If you truly understand how a reverse mortgage works and still want to use one, I don t have a problem with that. But one of the best ways to understand something is to see the problems with it. Then you can decide if those issues are a big deal to you or not. Home Equity Isn t Doing Nothing Perhaps the thing that bothers me the most about the reverse mortgage thing is the same thing that bothers me with those who advocate carrying a mortgage long into retirement and
2 using HELOCs for various purposes during your career. They like to sell this concept that home equity isn t doing anything. It s just sitting there being useless. I vehemently disagree. The home itself provides dividends. That dividend is saved rent. Technically, that home provides the same dividend whether the home is paid off or if you have a 100% LTV mortgage on it. So what the home equity itself is really doing is reducing your interest cost for that home. All the other expenses are precisely the same. If the home is 100% paid off, there is no interest cost. If you only have a little home equity, there is a substantial interest cost. The rate for that depends on your tax situation, but the return on your investment is your after-tax mortgage interest rate. Sure, that might not be a very good rate of return in comparison to the expected long-term return on riskier investments, but it certainly isn t zero and it is probably better than the guaranteed return on many low-risk investments. In addition, the paid off home eliminates a risk in your life- the risk of the home being foreclosed on if for some reason you can no longer pay the mortgage. That risk might not be very high, but it isn t zero. Bottom line: Home equity isn t doing nothing. A Reverse Mortgage is a Loan An important thing to understand about a reverse mortgage is it is a loan. With that loan, comes (almost) all of the problems with owing money to somebody else. These include having to pay interest, carrying the psychological burden of debt, and reduced future options. For example, if you borrow against something now, you can t borrow against it later.
3 In addition, a reverse mortgage isn t a particularly attractive loan. Not only is the interest rate 1-2% higher than a typical mortgage, but you can t even deduct the interest. You see, the IRS rules are that you can only deduct interest you actually pay. Reverse mortgage interest isn t paid until the home is sold. To make matters worse, the interest rate is generally variable. Now that doesn t seem like a big deal in times of low interest rates, especially for a short-term loan. But a reverse mortgage is not short-term (you hope). It s for the rest of your life. So when you signup for a reverse mortgage, you are committing to a highinterest rate, non-deductible, variable rate loan. That sounds kind of bad when you put it that way, doesn t it? A Reverse Mortgage is an Annuity In some ways, a reverse mortgage is also an annuity. Except it isn t a very good one. It doesn t really care about your gender or health status. It also doesn t guarantee to make payments until you die, even if you choose the tenure option. It only guarantees to make payments while you are living in your house. Want to move? Forget it, no more payments. Need to go to assisted living? There goes your house (unless you or your heirs pay off the loan) and your annuity payments. If you re not a big fan of loans, and you re not a big fan of annuities, you might not be a big fan of reverse mortgages, which combines the two concepts.
4 Reverse Mortgages Are Complex I m not a big fan of financial products I can t explain to a seven year old. Complexity generally favors the issuer and those who sell them. If you re going to bring me a complex product, its advantages better be so overwhelming that it makes up for the fact that I need an actuary to tell if I m getting a good deal or not. Mixing insurance and investing is usually a bad idea. Mixing home equity, an annuity, and insurance sure makes it hard to tell whether it is a good idea or not. You Only Get To Use Part of Your Home Equity Reverse mortgage- one way to spend home equity One of the things that bothers me about a reverse mortgage is that you only get to use part of your home equity. Given expected rates around 5%, that amount is 52%. But the expectation is that on average you will lose all or almost all of your home equity in exchange for it. If you really want to use your home equity to its maximum, sell the house, buy a SPIA, use part of the SPIA proceeds to pay the rent on a similar (or even the same) house and spend the difference on
5 something else. When you move out, you still get the SPIA payments. In Pfau s excellent Reverse Mortgages book, he shows how the tenure payment for a reverse mortgage is calculated. On a $500K house owned by a 62 year old, he calculates out a monthly payment of $1,498, assuming the upfront mortgage costs are paid from other resources. If you reduce the value of the house by 6% to account for realtor fees, a SPIA for a 62 year old male on $470K is $2,431, or 62% more. Now, granted the reverse mortgagee also gets to stay in the house, and that s worth something. However, he is also still responsible for the insurance, taxes, and maintenance that the renter would have covered by a landlord. A reasonable rule of thumb used by real estate investors is that the non-mortgage expenses on a rental property will be about 45% of the rent. Tricky comparison, right? Most 62 year olds aren t going to be able to do the math to really know which option comes out ahead, right? So they re not going to make this decision based on math. But guess who has done the math? The actuaries that work for the lender, and you can bet they re not going to lose money on the deal. High Interest Rates Make Reverse Mortgages Much Less Attractive
6 Platinum Level Scholarship Sponsor But wait, there s more. In Pfau s example, expected rates are quite low, so low in fact that the 62 year old was able to borrow 52% of the home equity as a reverse mortgage. At higher effective rates, such as 9.5%, that percentage falls to 15%. It s a lot less attractive to reverse mortgage your $500K house when all you get out of it is a loan for $75K. I think part of the interest in reverse mortgages the last few years is that the structure of a reverse mortgage makes it much more attractive in a period of low interest rates. While annuities become less attractive, reverse mortgages become more attractive with low rates. Conversely, as rates rise, you re probably much better off with a paid off home than a reverse mortgage. If your expected rate is 9.5%, a 62 year old can only borrow 15% of the home s value. Yet the estate might lose the entire value of the home at death. Does that sound like a good deal to you? I think I d rather give granny some spending cash myself and get 100% of the home s value when she passes. The Lender Can t Lose Another aspect of this that I don t like is that it is set up so the lender can t lose. The lender isn t making a bet that you re going to die soon. He doesn t come out any more ahead by you keeling over the year after you take out the reverse mortgage than 30 years later. His profit comes from the upfront fees, and if you include the investor in the securitized note in your definition of lender, from the years of interest. His downside is covered by the federal insurance fund. Guess who pays for that insurance? You did with the mortgage insurance. The reason you either put 20% down or used a physician mortgage when you bought your home was to avoid mortgage insurance. Yet now you want to buy it in retirement? Seems odd.
7 You want to know why lenders are so big on these? Higher fees, higher interest rate, higher closing costs, losses covered by mortgage insurance it is all good and no bad for the lender. In fact, there is so much potential bad in this for you that the federal government requires you to go to a counseling session provided by someone besides the lender before you can buy one. What other consumer products out there do you have to go to a government-mandated counseling session before you buy? A child? No. A firearm? No. A primary mortgage? No. A Roth IRA? No. Whole life insurance? No. But you do for a reverse mortgage. If that doesn t say Caveat Emptor I don t know what does. At any rate, when the lender can t lose in this deal, someone else has to, and that someone is you. (Okay, that s a little harsh. It could be a win-win deal, but it certainly isn t going to be a lose-lose deal, I can tell you that.) Be Realistic About Taxes Something that bothered me in Pfau s book was that he consistently used an example of a $500K paid-for house and a $1M investment portfolio. Yet he used a 25% marginal tax rate for that retiree. While I do not dispute it is entirely possible for a retiree with a $1M portfolio considering a reverse mortgage to have a 25% marginal tax rate, it seems rather high to me. The RMD on $1M at age 70 is $36K a year. That portfolio is likely not all tax-deferred. Some of it may be Roth and some of it is probably taxable. Let s say $500K is tax deferred. That s an RMD of $18K. Maybe they get another $30K in Social Security. But with only $18K in taxable income aside from Social Security, they don t pay taxes on Social Security. And they re in a low enough tax bracket that their dividends/capital gains rate is 0%. So how much federal income tax is this couple really going to pay? Nothing. 0%. Certainly not 25%. Now, I m ignoring state taxes as well, but even together it s pretty tough to get to 25% when your federal tax is so low.
8 Pfau also uses that same figure in his analysis of how using a reverse mortgage can make your retirement income spending more efficient, which obviously casts at least a bit of doubt onto those results as well. But instead of including the tax bill as part of the 4% withdrawal as I would expect, he adds it to the 4% withdrawal. So in those examples, the person without the reverse mortgage is withdrawing 5.33%. No surprise that there are a fair amount of scenarios where it doesn t work out well without tapping into additional resources like home equity. At any rate, when running your own scenarios when deciding to use a reverse mortgage, make sure you re being realistic about taxes. Taxes in retirement can be ridiculously low- no payroll taxes, much less income than during your peak earnings years, some of that income is taxed at capital gains rates, some (Roth) isn t taxed at all, and a progressive income tax system. The lower your effective tax rate, the less benefit you re going to have swapping interest for taxes. Tax-free sounds awesome, but just like with whole life insurance, taxfree but not interest-free isn t nearly as cool. The Cap Is Too Low To Move The Needle The other problem I have with a reverse mortgage for a doctor is the relatively low cap on the amount you can borrow. The maximum home value is $625K. And at best you re going to be able to use 52% of that, or about $325K. I don t know about you, but I plan to have so much money to retire on that $325K isn t going to move the needle for me. Most financially savvy docs I talk to project a financial independence number in the $2-5M range. At $2M, $325K is only 16% more money. At $5M, it s only 7%. At a certain point, it s no big deal to just have the house be part of my legacy. When you only have a $1M nest egg, that $500K home is a big part of your assets. When you have a $5M nest egg, a $500K house is not a big part of it, and even if you have a $2M house, you re only going to be
9 able to use $325K of it using the HECM program. The House Isn t Staying In The Family Platinum Level Scholarship Sponsor While technically you (and your estate) get to keep the title to the house, upon your death (or worse, your moving out before death) the loan becomes due. On average, that loan is going to be the vast majority of the value of the home. If the family wants to keep this house, they re going to have to come up with a lot of money in a hurry to do so. Now, if using this reverse mortgage really did make your retirement income strategy more efficient, maybe that can be paid out of your estate, but more likely, the family is going to have to give up a significant benefit such as a stretch IRA in order to keep the house. I would suspect that most of the time the house isn t going to stay in the family. That s not necessarily a big deal; I don t want my parent s house for instance, but if it matters to you, try to see the end from the beginning. Malincentive to Move Out An overlooked aspect of a reverse mortgage is the creation of a malincentive that otherwise wouldn t be there. Sometimes the
10 right thing to do is to downsize, move to assisted living, or move closer to family. If you have a reverse mortgage, particularly if you have chosen the tenure option, you have limited your options. As soon as you move out, the loan is due. You ve given up some future freedom when you took out the reverse mortgage. The Bottom Line If you understand the downsides of a reverse mortgage, and still find it attractive for your situation, feel free to go ahead and use it. There are a lot of different ways it can be used and there is no doubt that you can increase the maximum amount of money you can spend during your lifetime by using a reverse mortgage. However, you need to realize there is precious little free lunch here. Even when using it as a put option, there is still a price to be paid for that insurance. I doubt I ll ever use one, and I suspect most readers won t either. What do you think? Did I miss any downsides of a reverse mortgage? Would you consider one for yourself or a parent? Why or why not? Comment below!
The Problems With Reverse Mortgages
The Problems With Reverse Mortgages On Monday, we discussed the nuts and bolts of reverse mortgages. On Wednesday, Josh Mettle went into more detail with some of the creative uses for a reverse mortgage.
More informationIncome for Life #31. Interview With Brad Gibb
Income for Life #31 Interview With Brad Gibb Here is the transcript of our interview with Income for Life expert, Brad Gibb. Hello, everyone. It s Tim Mittelstaedt, your Wealth Builders Club member liaison.
More information10 Reasons Why I Pay Less Tax Than Mitt Romney
10 Reasons Why I Pay Less Tax Than Mitt Romney Mitt Romney took a lot of flack in the last election because his tax bill was only 14.1% of his income (despite the fact that he paid millions of dollars
More informationIf you are over age 50, you get another $5,500 in catch-up contributions. Are you taking advantage of that additional amount?
Let s start this off with the obvious. I am not a certified financial planner. I am not a certified investment counselor. Anything I know about investing, I ve learned by making mistakes, not by taking
More informationComparing Retirement Accounts
Comparing Retirement Accounts When I speak at conferences, I often use a slide entitled Suitcases and Swimsuits to demonstrate the difference between investments (the clothes) and the accounts they can
More informationThe Proper Ratio for Retirement Tax Diversification
The Proper Ratio for Retirement Tax Diversification Nearly every educated financial advisor agrees that tax diversification is a great idea when planning for ur distributions in retirement. Tax diversification
More informationHow to Stop and Avoid Foreclosure in Today's Market
How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company name] Discover all of your options [Pick the date] Find the solution or
More informationDisability Insurance Introduction
Disability Insurance Introduction I ll be doing a series of posts over the next few weeks on disability insurance. The subject is sufficiently broad, and sufficiently important, that one post isn t going
More informationThe History of Life Insurance, and Sales Strategies
The History of Life Insurance, and Sales Strategies Product Suitability Term Customers with limited income compared to need (affordability). Customers with a short-term exposure that needs to be covered
More informationIndividual Retirement Annuity- The Solution To The SPIA RMD Dilemma
Individual Retirement Annuity- The Solution To The SPIA RMD Dilemma When most people hear the term IRA they think Individual Retirement ARRANGEMENT, that mainstay of defined contribution retirement planning.
More informationA better approach to Roth conversions
A better approach to Roth conversions Jason Method: One beneficial aspect of our current retirement system is that it allows you to choose when to pay taxes on at least some of the money you ve saved.
More informationDEBTS AND DISPUTES. Understanding Debt. What to do?
DEBTS AND DISPUTES If you ve ever been owed money, you know it s a frustrating situation to be in. Even when it s a small sum, debts not only leave a bad taste, but they can really affect your financial
More informationChecks and Balances TV: America s #1 Source for Balanced Financial Advice
The TruTh about SOCIAL SECURITY Social Security: a simple idea that s grown out of control. Social Security is the widely known retirement safety net for the American Workforce. When it began in 1935,
More informationYou should buy a house as soon as possible, because it s the
1 CHAPTER Buy a House ASAP You should buy a house as soon as possible, because it s the one investment you can make with money you have to spend anyway. After all, you have to pay money to live somewhere.
More informationGUIDE TO RETIREMENT PLANNING MAKING THE MOST OF THE NEW PENSION RULES TO ENJOY FREEDOM AND CHOICE IN YOUR RETIREMENT
GUIDE TO RETIREMENT PLANNING MAKING THE MOST OF THE NEW PENSION RULES TO ENJOY FREEDOM AND CHOICE IN YOUR RETIREMENT FINANCIAL GUIDE Green Financial Advice is authorised and regulated by the Financial
More informationfor Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook
for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful
More informationAdded choice under your 457(b) plan.
Added choice under your 457(b) plan. Roth 457: An opportunity for tax-free* retirement income. *Qualifying conditions apply. The Roth 457(b) contribution option. You should consider the investment objectives,
More informationThis is the Human-Centric Investing Podcast with John Diehl, where we look at the world of investing for the eyes of our clients. Take it away, John.
Human-Centric Investing Podcast February 2, 2019 Episode 25, Social Security: How will benefits be taxed? Host: John Diehl, John Diehl, Sr. Vice President, Strategic Markets, Hartford Funds Featured Guest:
More informationBINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM
BINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM CONTENTS To Be or Not To Be? That s a Binary Question Who Sets a Binary Option's Price? And How? Price Reflects Probability Actually,
More informationYour Year-End Tax Planning Guide
Your Year-End Tax Planning Guide Taxes aren t America s favorite thing. Thirty-seven percent of people would move to a different country if it meant a tax-free future, 24% would get an IRS tattoo and 15%
More information10 Errors to Avoid When Refinancing
10 Errors to Avoid When Refinancing I just refinanced from a 3.625% to a 3.375% 15 year fixed mortgage with Rate One (No financial relationship, but highly recommended.) If you are paying above 4% and
More informationCan you handle the truth?
2 Can you handle the truth? Do you remember the first time you heard about self-directed IRAs? Chances are, the phrase, too good to be true was running through your head. Then, when you went to talk to
More informationBy JW Warr
By JW Warr 1 WWW@AmericanNoteWarehouse.com JW@JWarr.com 512-308-3869 Have you ever found out something you already knew? For instance; what color is a YIELD sign? Most people will answer yellow. Well,
More informationThe power of borrowing like a boss
The power of borrowing like a boss Borrowing can help you do some pretty wonderful things. Like getting that home that s right for you and your family (or family to be!). The place where you ll make memories
More informationClub Accounts - David Wilson Question 6.
Club Accounts - David Wilson. 2011 Question 6. Anyone familiar with Farm Accounts or Service Firms (notes for both topics are back on the webpage you found this on), will have no trouble with Club Accounts.
More informationHow Do You Calculate Cash Flow in Real Life for a Real Company?
How Do You Calculate Cash Flow in Real Life for a Real Company? Hello and welcome to our second lesson in our free tutorial series on how to calculate free cash flow and create a DCF analysis for Jazz
More informationFind Private Lenders Now CHAPTER 10. At Last! How To. 114 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved
CHAPTER 10 At Last! How To Structure Your Deal 114 Copyright 2010 Find Private Lenders Now, LLC All Rights Reserved 1. Terms You will need to come up with a loan-to-value that will work for your business
More informationRequired Minimum Distribution (RMDs)
Required Minimum Distributions (RMDs) Page 1 Required Minimum Distribution (RMDs) The IRS Forces You to Take Them and Pay, But You Can Fight Back You ve used IRAs and other retirement savings plans to
More informationWhat To Do With an Expected Inheritance
What To Do With an Expected Inheritance The comments section of this blog, the forum, and my email box are a constant source of good material to write about. This one came via an email back in April. Q.
More informationUnderstanding Money. Money 101. Money 101 What is debt? Savings and Investments
Understanding Money Money 101 What is debt? Savings and Investments Money 101 Let s face it, you need money. To get it, you will need to earn it. How much you need depends on where you live, your expenses,
More informationThe reality is, this isn t your parents or grandparents retirement, and people are behind and concerned for very real reasons
You were invited to this presentation in part because you ve shown the discipline and foresight to have already begun investing for retirement. We re learning a lot about the importance of the accumulation
More informationBUYER S GUIDE TO FIXED DEFERRED ANNUITIES
Annuity Service Center: P.O. Box 79907, Des Moines, Iowa 50325-0907 BUYER S GUIDE TO FIXED DEFERRED ANNUITIES Prepared by the National Association of Insurance Commissioners The National Association of
More informationReverse mortgages. A discussion guide. Consumer Financial Protection Bureau
Reverse mortgages A discussion guide Consumer Financial Protection Bureau About this discussion guide This guide gives an overview of many key concepts of reverse mortgages. A qualified reverse mortgage
More informationWhat You Need To Know About the Pass-Through Income Deduction
What You Need To Know About the Pass-Through Income Deduction [Update after publication: The original post included an error which affected a great deal of the post and its recommendations. It has now
More informationAdded choice under your 457(b) plan.
3019053.G.P-2 12/19/11 12:06 PM Page T01 Added choice under your 457(b) plan. Roth 457: A unique opportunity for tax-free* retirement income. *Qualifying conditions apply. Your future. Made easier. 3019053.G.P-2
More informationCongratulations! You ve decided to get to grips with your. Exploring the Basics COPYRIGHTED MATERIAL. Chapter 1
In This Chapter Chapter 1 Exploring the Basics Benefiting from getting a grasp on your finances Looking at your financial picture Working out how you can get out of debt Figuring out what you want from
More informationCopyright 2015 Wilma G. Anderson, RFC. Retirement Freedom
Retirement Freedom Don t Leave Your Retirement Behind! Let s face it. The financial landscape for retirees has shifted dramatically over the last few decades. Gone are the days when a nice pension was
More informationWHY YOU ARE NOT MAKING THE MOST OF YOUR 401(K)
WHY YOU ARE NOT MAKING THE MOST OF YOUR 401(K) PRESENTED BY: Peter Richon This report will reveal the secrets of Why you re not actually saving for retirement, Why you re definitely not saving on taxes
More information* Next, that you introduce yourself to one another
Slide 1 * Tax- Free Retirement Educational Seminar Good morning/evening. I m [Name], your co- host for today. It gives me great pleasure to introduce the (DBA name) from. (DBA name) has been assisting
More informationALL ABOUT INVESTING. Here is Dave s investing philosophy:
ALL ABOUT INVESTING Knowing how to deal with debt is easy pay it off! Investing, however, isn t quite so simple. Most people have questions about when and how to invest their money, so here s an inside
More informationAdded choice under the State of Nevada 457(b) Deferred Compensation Plan.
Added choice under the State of Nevada 457(b) Deferred Compensation Plan. A unique opportunity for tax-free* retirement income. * Qualifying conditions apply. Roth contributions must be held at least 5
More informationECO155L19.doc 1 OKAY SO WHAT WE WANT TO DO IS WE WANT TO DISTINGUISH BETWEEN NOMINAL AND REAL GROSS DOMESTIC PRODUCT. WE SORT OF
ECO155L19.doc 1 OKAY SO WHAT WE WANT TO DO IS WE WANT TO DISTINGUISH BETWEEN NOMINAL AND REAL GROSS DOMESTIC PRODUCT. WE SORT OF GOT A LITTLE BIT OF A MATHEMATICAL CALCULATION TO GO THROUGH HERE. THESE
More informationWhy Flagstar Bank for your Retirement Planning Needs?
Section I Why Flagstar Bank for your Retirement Planning Needs? Section I Est. 1987 Member FDIC Page 1 Why Flagstar Bank when saving for retirement? We all understand the importance of saving for retirement.
More informationPrincipal Funds. Women and Wealth. Invest in yourself. You deserve it. A step-by-step guide to help you achieve your financial goals.
Principal Funds Women and Wealth Invest in yourself. You deserve it. A step-by-step guide to help you achieve your financial goals. Take Time for You As a woman, you probably have a lot of responsibilities.
More information3 Simple Tricks to Legally. Lower Your Taxes
3 Simple Tricks to Legally Lower Your Taxes 1 3 Simple Tricks to Legally Lower Your Taxes By Ted Bauman ALBERT Einstein once said: The hardest thing in the world to understand is the income tax. He was
More informationYour Guide to Life Insurance for Families
Your Guide to Life Insurance for Families (800) 827-9990 HealthMarkets.com Your Guide to Life Insurance for Families Contents Does My Family Need Life Insurance? 4 Types of Life Insurance for Families
More informationExploiting the Inefficiencies of Leveraged ETFs
Exploiting the Inefficiencies of Leveraged ETFs [Editor s Note: Here at WCI we try to keep things as simple as possible, most of the time. Not today though. Today we re going to be discussing leveraged
More informationReal Estate Private Equity Case Study 3 Opportunistic Pre-Sold Apartment Development: Waterfall Returns Schedule, Part 1: Tier 1 IRRs and Cash Flows
Real Estate Private Equity Case Study 3 Opportunistic Pre-Sold Apartment Development: Waterfall Returns Schedule, Part 1: Tier 1 IRRs and Cash Flows Welcome to the next lesson in this Real Estate Private
More informationUnderstanding pensions. A guide for people living with a terminal illness and their families
Understanding pensions A guide for people living with a terminal illness and their families 2015-16 Introduction Some people find that they want to access their pension savings early when they re ill.
More informationSTOP RENTING AND OWN A HOME FOR LESS THAN YOU ARE PAYING IN RENT WITH VERY LITTLE MONEY DOWN
STOP RENTING AND OWN A HOME FOR LESS THAN YOU ARE PAYING IN RENT WITH VERY LITTLE MONEY DOWN 1. This free report will show you the tax benefits of owning your own home as well as: 2. How to get pre-approved
More information5 Biggest Mistakes Most Home Buyers Make
5 Biggest Mistakes Most Home Buyers Make And 3 Guaranteed Ways to Get Approved for a Home Loan This Complementary Special Report was prepared by: 2 5 Biggest Mistake Home Buyers Make Purchasing a home
More informationSAFE PLACE! STASH THAT 401(k) MONEY IN A INSIDE THIS ISSUE. Find A SAFE Spot for Some of Your 401(k) Money How to manage the Market s volatility
Scan this code to visit patschell.com STASH THAT 401(k) MONEY IN A SAFE PLACE! INSIDE THIS ISSUE Find A SAFE Spot for Some of Your 401(k) Money How to manage the Market s volatility A P U B L I C AT I
More informationSEVEN LIFE-DEFINING FINANCIAL DECISIONS
SEVEN LIFE-DEFINING FINANCIAL DECISIONS A Joint Project of The Actuarial Foundation and WISER, the Women's Institute for a Secure Retirement 5 PLANNING FOR RETIREMENT The money that you have to support
More informationSeven Secrets to Maximize Your Social Security Benefits
Seven Secrets to Maximize Your Social Security Benefits Although we can all be thankful that Social Security provides an income for retirement, the truth is that for many people, that benefit amount is
More informationHelping your loved ones. Simple steps to providing for your family and friends
Helping your loved ones Simple steps to providing for your family and friends Contents 01 How can I take control of who gets what? 02 Inheritance Tax 05 Do you know how much you re worth? 07 Making lifetime
More informationAnnually Renewable Term Insurance
Annually Renewable Term Insurance Although my term life insurance policies are level premium policies (same premium due every year of the term) there are advantages to a non-level premium policy. An annually
More information11 Biggest Rollover Blunders (and How to Avoid Them)
11 Biggest Rollover Blunders (and How to Avoid Them) Rolling over your funds for retirement presents a number of opportunities for error. Having a set of guidelines and preventive touch points is necessary
More informationA guide to the pension changes
A guide to the pension changes 1 in 5 consumers said they are more confused about their retirement options after the 2014 budget than before. (Unbiased April 2014) 2 / It s a retirement revolution! Let
More informationAre Your Allocations Right for Social Security?
Are Your Allocations Right for Social Security? Are Your Allocations Right for Social Security? Nothing exists in a vacuum, meaning that even if you ve determined the best time and method of taking your
More informationT. Rowe Price 2015 FAMILY FINANCIAL TRADE-OFFS SURVEY
T. Rowe Price 2015 FAMILY FINANCIAL TRADE-OFFS SURVEY Contents Perceptions About Saving for Retirement & College Education Respondent College Experience Family Financial Profile Saving for College Paying
More information14 Reasons Why You Shouldn t Retire Early
14 Reasons Why You Shouldn t Retire Early Early retirement is a goal for many, including physicians. An extra decade or two to travel, pursue hobbies, and volunteer becomes more and more attractive, especially
More informationBuyer's Guide To Fixed Deferred Annuities
Buyer's Guide To Fixed Deferred Annuities Prepared By The National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory
More informationTranscript - The Money Drill: Where and How to Invest for Your Biggest Goals in Life
Transcript - The Money Drill: Where and How to Invest for Your Biggest Goals in Life J.J.: Hi, this is "The Money Drill," and I'm J.J. Montanaro. With the help of some great guest, I'll help you find your
More informationQLACs. Qualified Longevity Annuity Contracts. Annuity Product Guides. Defer RMDs and convert your retirement savings into guaranteed lifetime income
Annuity Product s QLACs Qualified Longevity Annuity Contracts Defer RMDs and convert your retirement savings into guaranteed lifetime income Modernizing retirement security through trust, transparency
More informationWhere should my money go First? Here s advice from the financial professionals at Schwab.
Where should my money go First? Here s advice from the financial professionals at Schwab. Start with the basics. In an ideal world, you d have enough money to pay all your bills and save for retirement
More informationFlex ib ility :Adju s ting SocialSecu rity Benefits
Thomas C. B. Davison, MA, PhD, CFP NAPFA Registered Financial Advisor Partner Emeritus, Summit Financial Strategies, Inc. toolsforretirementplanning.com tcbdavison@gmail.com You may want to delay the start
More informationCONSUMERSPECIALREPORT. The Truth About When to Begin Taking FINANCIAL PLANNING INCOME PLANNING RETIREMENT PLANNING WEALTH MANAGEMENT
CONSUMER The Truth About When to Begin Taking Social Security It s all about time. And timing is everything. 2 With so many Americans reaching the early retirement age of 62, the question of when to begin
More informationWorkbook 3. Borrowing Money
Workbook 3 Borrowing Money Copyright 2019 ABC Life Literacy Canada First published in 2011 by ABC Life Literacy Canada All rights reserved. ABC Life Literacy Canada gratefully thanks Founding Sponsor TD
More informationCredit Cards Are Not For Credit!
Starting At Zero Writing this website, responding to comments and emails, and participating in internet forums makes me a bit insulated to what s really going on out there sometimes. That s one reason
More informationTax Loss Harvesting at Vanguard A Primer
Tax Loss Harvesting at Vanguard A Primer In June of this year, there was a period of time where stocks dropped for about 6 days straight. In fact, if you look carefully at the chart, there were similar
More informationGetting Ready to Retire
How to Prepare for Your Retirement A GUIDE TO: Getting Ready to Retire EDUCATION GUIDE Create a plan now for a more comfortable retirement If you re five years or less from retirement, now is the time
More informationAs you face the fact that you ll probably be living 20 to 30 or more years
In This Chapter Retiring or working Managing money and health Exploring work alternatives Running a business Expanding your knowledge Giving back to your community Chapter 1 The World of Work After Retirement
More informationFor financial professional use only. Not endorsed or approved by the Social Security administration or any other government agency.
With so many Americans reaching the early retirement age of 62, the question of when to begin taking Social Security benefits has never been more on the mind of sixty-somethings. Many online calculators
More informationHow to buy a home EDINBURGH THE LOTHIANS FIFE
How to buy a home EDINBURGH THE LOTHIANS FIFE Feel at home with ESPC Buying a home is exciting, satisfying and also pretty daunting. There s a lot to get your head around, but if you break it into bite-size
More informationMYGAs. Multi-Year Guaranteed Annuities. Annuity Product Guides. A safe, guaranteed and tax-deferred way to grow your retirement savings
Annuity Product s MYGAs Multi-Year Guaranteed Annuities A safe, guaranteed and tax-deferred way to grow your retirement savings Modernizing retirement security through trust, transparency and by putting
More informationGuide to trusts. A brief guide to Trusts and our Trustbuilder tool
Guide to trusts A brief guide to Trusts and our Trustbuilder tool A Brief guide to Trusts and our Trustbuilder tool Introduction This brief guide explains some of the main features and benefits of our
More informationSOCIAL SECURITY. 6 Critical Social Security Facts Retirees Must Know
SOCIAL SECURITY 7/26/201 6 6 Critical Social Security Facts Retirees Must Know Social Security provides an important source of guaranteed income for most Americans. Choosing the right claiming strategy
More informationWhat Should the Fed Do?
Peterson Perspectives Interviews on Current Topics What Should the Fed Do? Joseph E. Gagnon and Michael Mussa discuss the latest steps by the Federal Reserve to help the economy and what tools might be
More informationWHAT HAPPENS IF I DON T PAY
LESSON 7 WHAT HAPPENS IF I DON T PAY THE LESSON IN A NUTSHELL Not paying your bills has consequences. Even when you re late, pay as soon as you can. Overview...2 Activity #1: You ve Been Pre-Approved!...
More informationPreparing to buy your first home?
Preparing to buy your first home? Buying your first home is an exciting journey! However, when you re at the beginning of your home buyers journey, you may be confused about to where to start and worried
More informationAre You Receiving 8-10% Interest on your Investments?
Are You Receiving 8-10% Interest on your Investments? If your answer to the above questions is no, you will want to pay very special attention. The following information could significantly increase the
More informationFinance 527: Lecture 35, Psychology of Investing V2
Finance 527: Lecture 35, Psychology of Investing V2 [John Nofsinger]: Welcome to the second video for the psychology of investing. In this one, we re going to talk about overconfidence. Like this little
More informationRetirement Investments Insurance. Pensions. made simple TAKE CONTROL OF YOUR FUTURE
Retirement Investments Insurance Pensions made simple TAKE CONTROL OF YOUR FUTURE Contents First things first... 5 Why pensions are so important... 6 How a pension plan works... 8 A 20 year old needs to
More informationAT OUR PROPOSAL A CLOSER LOOK. Your guide to what we want to offer
A CLOSER LOOK AT OUR PROPOSAL Your guide to what we want to offer All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department
More informationWhat is credit and why does it matter to me?
Understanding Credit 1 Money Matters The BIG Idea What is credit and why does it matter to me? AGENDA Approx. 45 minutes I. Warm Up: What Do You Know About Credit? (10 minutes) II. Credit: The Good, The
More informationWizard. Retirement Savings. The Wonderful. Featuring a Roth option on the Yellow Brick Road
THE COUNTY OF SAN BERNARDINO IS PLEASED TO PRESENT: The Wonderful Wizard of Retirement Savings Featuring a Roth option on the Yellow Brick Road Retirement planning can seem like a wild don t let your retirement
More informationRETIREMENT GUIDE. Wise Options For Retirement
RETIREMENT GUIDE Wise Options For Retirement Table of Contents Retirement Phases and Income Needs 3 Retirement Planning Considerations 4 How Much Will You Need To Save? 5 How Long Will Your Savings Last?
More informationYour life. Your future. Your options.
Your life. Your future. Your options. Whether by chance or by choice, you have options. Explore them with Empower Retirement. Corporate Retirement Plan Participant Brochure You want to retire someday or
More informationGuide to trusts. A brief guide to Trusts and our Trustbuilder tool. Trusts the basics. Settlor makes a gift to the trust
Guide to trusts A brief guide to Trusts and our Trustbuilder tool This brief guide explains some of the main features and benefits of our trusts, and gives you some information to help you decide whether
More informationThe Common Sense Guide: HECM
The Common Sense Guide: HECM Home Equity Conversion Mortgage Prepared by: Ed O Connor Ed O Connor, NMLS# 17212 Your Credit Union Trusted Resource FHA made the program WE make the difference! 1 Steps to
More informationUnilever UK Pension Fund At Retirement Booklet
Unilever UK Pension Fund At Retirement Booklet Please complete your details in this table Your name Your date of birth Your retirement date Your State Pension Age * * If you don t know your state pension
More informationSPIAs. Single Premium Immediate Annuities. Annuity Product Guides. Convert your retirement savings into a guaranteed lifetime income stream
Annuity Product s SPIAs Single Premium Immediate Annuities Convert your retirement savings into a guaranteed lifetime income stream Modernizing retirement security through trust, transparency and by putting
More informationAre you ready to roll?
Are you ready to roll? Is an IRA Rollover right for you? Variable Annuities: Are Not a Deposit of Any Bank Are Not FDIC Insured Are Not Insured by Any Federal Government Agency Are Not Guaranteed by Any
More informationOn track. with The Wrigley Pension Plan
Issue 2 September 2013 On track with The Wrigley Pension Plan Pensions: a golden egg? There s a definite bird theme to this edition of On Track. If you want to add to your nest egg for retirement, we ll
More informationAn Easy-to-Understand Introduction to the Retirement Plan and the Savings Plan. Contributions. Other Benefits
An Easy-to-Understand Introduction to the Retirement Plan and the Savings Plan Annuities How the Plans Work Contributions Eligibility Enrollment Other Benefits September 2013 WELCOME TO THE YMCA RETIREMENT
More informationLooking to buy your first home? What to consider when it comes to getting the right loan.
Looking to buy your first home? What to consider when it comes to getting the right loan. Here are the most important things to know before you borrow. If you re looking to buy your first home, chances
More informationTHE BEST RETIREMENT INVESTMENT OPTIONS
THE BEST RETIREMENT INVESTMENT OPTIONS by Lew Nason, RFC, LUTCF, CFLA If you could design your ultimate retirement savings vehicle, what benefits or features would you like it to have? Let your imagination
More informationStrategies For Wealth Building
For many people who are struggling from month to month financially, even the term wealth building seems alien. Yet when people spend less than they receive and make good decisions, they can, slowly over
More informationRetirement Planning & Savings
For many people, retirement is one of the rewards for a long and successful career or a lifetime of hard work. Retirees do many things with their time: volunteer, work on hobbies or other interests that
More informationWealth in Real Estate
Building Wealth Through Real Estate Wealth in Real Estate Why build wealth this way? The simple answer is that it is the most powerful way to accumulate wealth, and more people have become millionaires
More information