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Smart Retirement Strategies: 5 Financial Facts to Help Your Loved Ones Maximize Their Assets
Financing Retirement, Retirement Planning

Smart Retirement Strategies: 5 Financial Facts to Help Your Loved Ones Maximize Their Assets

Did you know that 64% of Americans adjusted their spending habits in 2020? Last year changed the world, and the change spread to our bank accounts, financial views and long-term savings goals for retirement.

If you’re helping your parents or other loved ones prepare for the next phase, it’s never too late to look for opportunities to make the most of their assets. Reverse Mortgage Funding (RMF)  has provided five financial retirement facts to help plan a sound retirement strategy.

  1. The standard deduction is inching upward. The standard deduction is a set dollar amount that reduces your taxable income. And thanks to inflation, it’s on the upswing. Depending on their filing status, your parents may deduct an additional $200 to $400. If they’re mulling over whether to itemize or choose the standard deduction, figure out which results in the lowest tax bill to keep more money saved for when it’s time to retire. 
  2. The estate tax exemption is taking a huge leap. For the 2020 tax year, the estate tax exemption is set at $11.58 million — that’s $180,000 more than previous years. But unless Congress intervenes, the exemption expires in 2025, making now an optimal time for older Americans to build an estate plan into their financial retirement strategy.
  3. 401(k) contributions are increasing. Are your parents still working and saving to meet their retirement plan? While the traditional IRA and Roth contribution limits remain unchanged, the contribution limits for 401(k) accounts for 2020 increased to $19,500. Individuals 50 or older may also be eligible to make an additional $6,500 catch-up contribution to pad their retirement savings.
  4. HSA contributions are going up. For the 2020 tax year, Health Savings Account (HSA) contributions were capped at $3,550 for an individual and $7,100 for a family — a $50 and $100 increase, respectively. And if your parents are age 55 or older, there’s another bonus: they can add an additional $1,000 through a catch-up contribution.
  5. Financial aid asset protection allowance is plummeting. Do your parents still have college-aged children? They may already know that the Free Application for Federal Student Aid (FAFSA) excludes a portion of their non-retirement assets in its calculations. Unfortunately, that amount is taking a nose-dive. In 2010, it was $52,400 for a 48-year-old married parent. By 2020, that 48-year-old married parent could only protect $6,000 in assets. That’s a $46,400 difference! Over the next few years, asset protection allowance may disappear altogether, so remind your parents to factor that into their financial retirement strategy.  

A reverse mortgage may be the key to meeting retirement goals 

There are many outside factors that can affect your loved ones’ retirement funds. But a retirement strategy will be more effective when they focus on the things they can control like choosing a reverse mortgage.

A reverse mortgage loan is an exclusive financial tool designed for homeowners age 62 and older. As borrowers, your parents or family members can leverage the equity built up in their home to supplement their retirement income — all while continuing to live in it and retain ownership. Best of all, they choose how to receive the money, either as a lump sum, monthly payments or a line of credit that’s there when they need it.* As with any mortgage, borrowers must meet certain loan obligations, keeping current with property taxes, insurance and maintenance. Discover how to retire more freely with a reverse mortgage.

Curious how a reverse mortgage may help you or your loved ones meet future retirement goals? Contact Reverse Mortgage Funding (RMF) at (888) 277-1567 and schedule an in-person appointment with a local loan specialist at your convenience.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.8-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.

*Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.

This information is intended for those who are interested in financial education. This information is provided for convenience only, and RMF make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and RMF is under no obligation to provide updated information. Materials or statements made by a third party and located or posted on the Site are those of the third party and do not necessarily reflect the official policy or position of RMF. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, or legal professional.  All mortgage origination services are provided by Reverse Mortgage Funding LLC, a state licensed mortgage lender, which is licensed or otherwise exempt from state licensing in the states in which it originates mortgage loans.


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

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