Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

Subscribe Now



How much money will you need to retire?
Financing Retirement, Retirement Planning

How much money will you need to retire?

Your living expenses today — and how much you expect to spend in future years — dictate how much you’ll need to save for a comfortable retirement.

One common retirement savings rule of thumb is to aim for a retirement income that’s 80% of your working income at the time you retire if you want to maintain the same lifestyle.1 If you earn an annual salary of $75,000, for example, your goal would be for a $60,000 yearly income during retirement.

But rarely do one-size-fits-all guidelines apply to every situation. Your preferred lifestyle and your retirement goals will play a huge role in determining your monetary needs. So before deciding on a set figure, consider these five factors:1

  • Expected expenses: Is your home paid off? Are your local income tax and property tax rates high or low? You also need to anticipate healthcare costs, as they tend to add up quickly. If you have pre-existing health conditions that require regular treatment, these costs must also be factored into your future.
  • Lifestyle: When you’re retired, every day is Saturday. Some people plan to travel during retirement. Others want to pursue new hobbies. You may even be home more than when you were working, in which case you’ll likely spend more on utilities. No matter what, it’s going to cost you money. Pay attention to the cost of living in your community, and factor in what you will need to cover any additional activities you want to participate in.
  • Inflation: Inflation can shrink the value of your money in the future. Your fixed income at 65 may not have the same purchasing power when you’re 85.
  • Longevity: People are living longer and spending more time in retirement. In fact, the average life expectancy increased five years between 2000 and 2015 — and continues to grow.2 If you’re in excellent health and have many relatives who lived well into their 90s, you might want to aim for extra retirement funds so you don’t risk running out of money.
  • Risk tolerance: If you can handle some risk, you may consider a more aggressive investment strategy to grow your savings. But if you’re risk-averse, you’ll want to be more conservative in your savings approach — and plan accordingly when it comes to projecting investment returns. Before making any decisions, you should always consult with a financial professional.

Reverse mortgage loans: Using your home equity to fund retirement

When it comes to retirement savings, there are no guarantees. And even with meticulous planning, saving and investing, you or your loved ones might still find there is not enough money put aside to give you financial security. A government-insured* reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), may be a viable solution.

A reverse mortgage loan is a unique type of loan for homeowners 62 and older that lets you convert a portion of your home equity into cash or a line of credit. The amount available generally depends on four factors: your age, the current interest rate, the home’s appraised value and government-imposed lending limits.

Government-insured* reverse mortgages offer many benefits compared to a traditional mortgage:

  • You can continue living in your home, and you retain title to it.
  • You can refinance your existing mortgage with a loan that can drastically reduce or even eliminate the monthly expense of principal and interest payments.
  • As with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowner’s insurance and any homeowner’s association (HOA) fees, and keeping your home in good condition.
  • Your Social Security and Medicare benefits are not affected.1
  • You and your heirs are not personally liable for any portion of the mortgage debt that exceeds the value of your home, even if your home value decreases.
  • Any remaining equity after the reverse mortgage is paid off belongs to you or your heirs.

Find out more about reverse mortgages and how they work.

Taking control of your future

Planning for your retirement lifestyle doesn’t have to be stressful — especially when you have options. At Reverse Mortgage Funding LLC (RMF), we can help you prepare for a financially secure future. To find out more about reverse mortgages, call 888-277-1567 for a convenient phone appointment with a licensed reverse mortgage specialist.

1Not financial advice. Consult a financial professional.

2Global Health Observatory Data, World Health Organization, 2017.



Subscribe to Retirement News with Professor Craig

Join our mailing list to get the latest in lifestyle content, financial advice, news and information from Professor Craig to live a better retirement.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

Equity Elite Reverse Mortgage

Put Your Home Equity to Work for You

Get Your Free Reverse Mortgage Quote

By clicking "CALCULATE", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged and are representing that you are the regular user of provided number. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-1567 to complete your request. You understand that you can revoke this consent at any time.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.