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. 

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Retire Your Way: Live Your Best Years with the Benefits of a Reverse Mortgage Loan
Retirement News, Financing Retirement, Retirement Planning

Retire Your Way: Live Your Best Years with the Benefits of a Reverse Mortgage Loan

Growing old is a privilege — thankfully one that more and more Americans will experience. The first Baby Boomers turned 65 in 2011, and since then, there’s been a swift increase in the size of the 65-and-older population, which grew by over a third since 2010. In fact, no other age group has seen such fast growth.

To celebrate this ever-expanding generation, we observe Older Americans Month each May.

This year’s theme for the month, Age My Way, focuses on how older Americans can comfortably age in place, spending their best years living independently at home. At Reverse Mortgage Funding LLC (RMF), our mission is help make that a reality for as many older homeowners as possible. That’s why we offer a unique financial tool designed exclusively for older homeowners — the reverse mortgage loan.

Uncovering your home wealth

As a borrower, a reverse mortgage allows you to access the equity built up in your home, all while continuing to live in it and retain ownership. *Funds can be accessed as a lump sum, monthly payments or a line of credit that’s available on standby.

A reverse mortgage also has a flexible repayment feature. You pay as much (or as little) as you’d like toward the principal and interest each month or defer repayment altogether. Like any loan, there are certain obligations that must be fulfilled, including maintaining the property and keeping current with property-related taxes and insurance payments.

Best of all, proceeds from the loan can be used however you deem necessary. According to a recent New York Times article, a growing number of financial scholars and researchers agree that a reverse mortgage can be an effective financial tool to supplement a retirement funds. Here are some of the ways this loan can offer you the financial resources you need to age your way:

Continue to grow your investment portfolio. The impacts of inflation and an unstable market can cause concern — especially for those living on a fixed income. And taking withdrawals now can wreak havoc on the health and longevity of your portfolio.

By using the funds from a reverse mortgage, you can potentially keep your assets invested and avoid paying income tax* on IRA withdrawals or capital gains taxes on stock sales. By leaving investments intact, you may also create a greater legacy of wealth for your loved ones. 

Delay claiming Social Security benefits. Social Security payments are calculated using the 35 highest-earning years of your career, adjusted for inflation. As of January 2022, the maximum benefit for someone of full retirement age this year is $3,345 per month. 

While Social Security benefits can be claimed as early as age 62, collecting them before you reach full retirement age may result in reduced monthly benefits for the rest of your life — even after you reach your full retirement age.

Establish a line of credit that grows. By opening a line of credit now, you’ll have more borrowing power in the future. The line of credit grows at the same rate as any interest applied to the loan balance.

So if part of your loan is held in a line of credit from which you may draw, the unused portion will grow each month. The growth rate is equal to the sum of the interest rate, plus your loan’s annual mortgage insurance premium rate.

Finance expenses and goals. You can use the loan proceeds as you wish to pay for home renovations, vacations, health-related expenses, in-home care and so much more. Think of all the ways these funds can help you live a more fulfilling and enjoyable retirement.

Retirement — on your terms

Is a reverse mortgage right for you and your retirement lifestyle? The loan specialists at RMF can help determine if you’re a good candidate. Call us today at (888) 277-1567 to find out more.

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 4.7-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. In certain states, RMF’s Equity Elite loan provides a fixed-rate term payment option.

*Not tax advice. Consult a tax professional.

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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.


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