New Retirement – are your finances prepared to handle the new retirement?
Many are talking of a new retirement, long gone are the days of companies paying pensions, steady welfare checks, and stable home prices. The new retirement will be a little different over the next 5 years with high poverty rate, high unemployment, housing prices/securities prices on the brink of collapse, and a very uncertain economy for most developed countries.
“Unfortunately there is a new retirement which will be based on individuality; we are advising seniors to save while working, work in retirement, to manage their budgets, and to consider taking equity out of their home’s with the reverse mortgage loan.”
Middle class seniors are going to be impacted the hardest, we have already seen many properties prices and security prices (investments in the stock market) drop by more than 50%, with another recession predicted in 2012 there is no improvement in sight.
With seniors living longer, uncertainty in the market, one of the best ways seniors can secure their retirement is by receiving guaranteed life long income ( usually done through annuities but now there is a new product on the block).
Reverse Mortgage – this is a great product for seniors who are concerned with their home prices or the economy over the next 5-10 years, as the reverse mortgage loan will allow you to take out a portion of the home’s equity without worrying about repayment. Currently we have lenders who are now offering a no fee reverse mortgage.
Who Can Qualify For a Reverse Mortgage
- must be 62 or older
- must own home
- must be primary residence
- must have equity in the property
If home prices go down over the next few years you will have essentially have taken out an insurance policy which protects you since you have received a lump sum with the HECM reverse mortgage.
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