The Success Of The Baby Boom Generation

Some economic observers predict financial disasters, both national and personal, when the baby boomers retire. They say that as nations of workers and investors become nations of retired consumers, withdrawals will far outweigh deposits in investment and savings vehicles.

Needless to say if you can be aware of the many factors that play into this decision making it may be easier for you to objectively look at a reverse mortgage and make a better decision of it 's effectiveness for you.

While using financial ratios to measure wealth adequacey, Love, Smith, and McNair (2008) examined the current wealth adequacy of older U.S. households, those age 55 and older, using the 1998-2006 waves of the Health and Retirement Study (HRS). To establish a benchmark of wealth adequacy, poverty-line wealth was analyzed to establish a base-line level of wealth required to provide income over the projected remaining lifetimes of each household member. Due to the poverty line being an unaspiring goal to meet, 1.5 to 3 times poverty wealth was used as a relevant threshold. The results of the study indicated that the median older U.S. household is reasonably prepared for retirement, with a ratio of comprehensive net wealth to present value poverty-line wealth of about 3.9 in 2006. The study also determined that 18 percent of households possessed less wealth than what is necessary to generate 150 percent of poverty-line income over their expected future lifetimes. When comparing the leading edge of the baby boomer generation in 2006 to households of the same age in 1998, Love et al. (2008) determined that the 2006 baby boomers held slightly less wealth than their elders. Moreover, single boomers showed higher incidence of inadequacy than the previoulsy measured generation.

Seniors should seek out professional advice from a reverse mortgage expert, who can give them all the information about reverse mortgages to help them make the most effective and informed decision. A reverse mortgage can prove to be the added financial resource to give seniors the sense of freedom from the financial woes which accompany so many people

Many consumers have misconceptions about these loans, often leading them to believe that these mortgages have too many drawbacks and should only be used for extreme financial hardship. Our articles addressing the myths about reverse mortgages debunk these misconceptions, however there are benefits to them that most consumers and even industry professionals are not aware of or have not considered, and at times drawbacks that have not been thought through as well. One such benefit is the tax planning options outlined earlier. Another is receiving protection from housing volatility. Yes, it 's actually possible to use a reverse mortgage to protect yourself in part from falling home

Your lender may require you to take counseling before you apply for a reverse mortgage. This is an important step because it helps you understand exactly what happens and what your rights are. The reverse mortgage could affect the rest of your life and the inheritance of your heirs, so knowing how it works is important. Plus, a counselor can plug in your personal financial details and help you decide on the best way to take the money out of your house. You'll also learn about things that could put your mortage in jeopardy such as moving to a different address, not paying insurance, and not keeping up with repairs.

Data is cited showing that, in an aging population, individuals rely on state support in their retirement years. Suggested policies include financial literacy programs, delayed retirement, automated personal saving, and financial advisory reform. Nishiyama et al. (2014) proposes that a key problem regarding personal savings, assets, and retirement are the very state funded programs designed to help retirees. The research concludes that median income levels among the Boomer generation will not be able to support it’s level of “consumption based on it’s own assets” (Nishiyama et al. p. 65) in the retirement years. In conclusion, this study asserts that the financial education and reflexive retirement delay components provide the most broad and effective measures to mitigate budget shortfalls in an aging

A retirement crisis can be seen looming on the horizon. Countless financial writers have interviewed analysts and actuaries documenting studies showing a large percentage of American workers will be financially unprepared for retirement. The effects will be devastating for an aging population facing increasing life expectancies. The cost to the U.S. economy and to those still working to support the financially

When it comes to selling one's home after taking a reverse mortgage, many seniors find much of the available reverse mortgage information confusing. The fact is seniors can choose to sell their homes at any time, but they should be aware that doing so will make their loan due. To get the most from the investment,

In todays market, the HELOC is at the lowest rate it has ever been and at a historic 55 year low. So when you use the HELOC which is lower that your mortgage as a checking account, you end up paying your mortgage at a rapid speed all without changing your lifestyle

ratio over 40% is considered troublesome. Also, compared to the 1995 and 2004 pre-retirees, the 2013 pre-retiree’s debt-to-income ratio exceeds the previous cohorts. However, the mean monthly total debt payment is lower for the 2013 cohort as compared to the 2004 pre-retirees. This may be a direct result of the decline in income for the 2013 cohort. In addition, the mortgage debt-to-income ratio for the 2013 pre-retirees increased over the measurement periods between 1995 and 2013. Moreover, the mortgage debt-to-income ratio for the 2013 pre-retirees increased as compared to the 1995 and 2004 pre-retiree cohorts. This observation provides evidence that the current group of pre-retirees has increased their mortgage debt over time and they

You can use a reverse mortgage as a retirement tool. Which is better, a home equity line of credit or reverse mortgage?

Reverse mortgages are a revolutionary way of achieving financial freedom while on retirement. It does not put strain on the individual through payment of costly monthly installments, and provide a person loved ones with a cushion incase anything goes wrong. It also has lower interest rates. Despite the fact that it is one of the loan products that fits well for senior citizen, numerous people do not understand how it works.

A reverse mortgage gives you the benefit of staying in their home. However, if you have a reverse mortgage then you give up the option of selling your home or getting a home loan. The equity in your home now belongs to the bank. Is a reverse mortgage the best option for the equity in your property? The major benefit is the ability to take money out of your home in either one full payment or monthly payments. Moreover, you will be able to remain living in your home, (Sheedy, 2013). Given that the fees for the reverse mortgage are rational and the company you work with is reputable, a reverse mortgage is a good way to get money out of your home without having to resort to getting a home loan. The fees for a reverse home loan can be very

Another advantage of a reverse mortgage is that all the money being taken out against the equity is completely tax free and, there are zero restrictions on income. This means if the homeowner is bringing in only a small amount of money each month on which to live, or has no income at all, he or she would still qualify to use money from the