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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Strapped for Cash? Why That Might be Bad News for Your Retirement
Retirement News, Financing Retirement

Strapped for Cash? Why That Might be Bad News for Your Retirement

A strong investment portfolio was once regarded as the key to a comfortable retirement. But with today’s current rates at historic lows, folks in or nearing retirement are focused on cash flow.

At this phase, financial priorities shift from saving as much as you can to making the most of the money you put away during your working years. Rather than receiving a steady paycheck, you may be drawing income from multiple sources — Individual Retirement Accounts (IRAs), Social Security benefits, pension distributions, investment income, annuity payments or even a part-time job.

And monthly bill paying can become more complicated. For example, you may now be responsible for paying insurance premiums directly to your carrier, rather than through a paycheck. It also may be up to you to put aside money for quarterly estimated taxes, as state and federal income taxes aren’t withheld from taxable income generated by Social Security or pension benefits.

Do you have enough cash each month to cover your debt and expenses, and maintain your lifestyle? Consider the following strategies:

Follow a budget. For responsible cash flow planning during retirement, you need to establish a budget. How much income are you bringing in, and what expenses must be covered? Budgeting can determine the amount of cash needed to live comfortably, as well as to help project long-term spending needs. Whether you track using an Excel spreadsheet or an online tool, be sure to evaluate your budget quarterly and make any necessary adjustments.

Plan for taxes. For most retirees, tax planning involves analyzing your investment vehicles and their tax consequences. For example, one type of account may have different timing or tax penalties for withdrawals than another. When funds are needed to sustain your monthly cash flow, it’s important to be mindful of the tax ramifications when choosing the account from which to draw those funds.

Invest wisely. If your income streams are producing more cash than you’re spending each month, think about investing to help make that money work in your favor. According to some experts, a down market can be a great time to invest — as long as you have time to watch the market recover so your funds may grow. As always, consult with a financial advisor on your specific situation.

Don’t touch your emergency fund. You never know when a situation may require immediate cash. So, when on a fixed income, you need to have that money readily available. You and your family should set aside an amount based on your comfort level and budget. This can help prevent scrambling for funds when you need them most.

Cash in on your home equity. Downsizing, refinancing or relocating can help generate cash flow, but a reverse mortgage from Reverse Mortgage Funding LLC (RMF) allows you to tap into the equity you’ve built without having to sell your home. You can choose to take the proceeds as a lump sum, monthly payments or a line of credit that’s available when you need it. 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 Equite Elite loan provides a fixed-rate term payment option. The best part? Monthly mortgage payments are optional — that means you can keep more of your savings and invested assets. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, and maintenance. Call RMF at (888) 277-1567 to learn more.

Because cash is king

If you’re looking for ways to maintain positive cash flow during retirement, consider your unique needs and explore the options available. While retirement changes cash flow, it also presents new financial opportunities to help sustain the lifestyle you deserve.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, 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 5-star / Excellent score on Trustpilot; 4.5 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call (888) 277-1567 to speak with one of our experienced reverse mortgage specialists to learn about our retirement financing products and solutions.


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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.

Equity Elite Reverse Mortgage

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