RetirementHomes.com - finances

The benefits of know about your benefits

aadmin — Thu, 22 Jan 2015 19:50:42 +0000

While reaching your 65^th birthday is hardly the guaranteed sign of retirement it once was, it is still an age that means change for your group benefits and health insurance. When approaching retirement make sure you know how your group and individual insurance will change whether you are working full time, part time or doing what you want on your own time. A few minutes going over your policy fine print will save you from unwanted surprises in the future.

If working full time:

At age 65 many benefits change. Group life insurance and accidental death and disability insurance benefits commonly decrease by half at age 65, even if you are still working full-time. It is a good time to evaluate what individual life insurance you have and what you will need.

Most individual disability insurance policies will remain the same if you still work a certain number of hours per week; however, you need to inform the insurance company of your status. Past age 65, the benefit period for a claim commonly drops to two years.

Some individual disability and critical illness policies also have provisions that allow you to convert the policies to long term care policies, as your focus changes from income replacement to funding potential future care.

For both personal and group plans, out of country travel coverage usually changes at age 65, decreasing by either the length of travel covered or the amount payable. (If you rely on your credit card for travel insurance read the fine print on that policy as well. Each card is different, but for most cards the terms of coverage change at age 65.)

If retiring:

Know what you can take with you. In most cases, your workplace group life insurance can be converted to a personal policy when you retire or leave a company.

Investigate what government plans will cover so that you get the health insurance coverage that you need. And if you have a spouse with his or her own workplace plan, see if that plan can pick up where yours is dropping off.

Apply for a personal health insurance plan right away. If you apply for coverage within 60 days of leaving a group insurance plan, minimal or no medical proof of insurability is required by most companies. Your current insurance carrier may offer a plan, but you can look into options from other insurance companies as well.

If working part time:

Don’t assume working fewer hours but staying with the company means that you will still be entitled to the group insurance coverage. Most employee plans require you to work a minimum hours per week to be eligible for benefits. Know that number before you make the switch to part-time hours. Choose your schedule accordingly if you want to keep those benefits in force.

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Growing number of elderly struggle to get mortgages

aadmin — Thu, 15 Jan 2015 19:19:44 +0000

Older people in the US are increasingly taking more mortgage debt into retirement than ever before, but applying for a new mortgage can prove troublesome for seniors. This is also the case in the United Kingdom, where new rules that were introduced earlier in the year have meant a greater struggle to gain finance for home buying in later life.

For homeowners in America aged 65 and over, the percentage carrying mortgage debt increased by almost 10% to 30% from 2001 to 2011. Among those aged 75 and older, the rate more than doubled during the same period, from 8.4% to more than 21%.

Types Of Mortgages Available In America

There are many different types of housing purchase loans available to older people in America, but the problem comes from proving that you can pay, even if you are still working later in life. There is a lot of advice and services available to senior borrowers, and many options are available.

Range Of Mortgages In The US

There are a range of mortgages available to US senior citizens, from the standard mortgage, which depends on your income and credit rating, to a second mortgage, but these are riskier for lenders. Other options include a refinanced mortgage and a reverse mortgage.

Reverse Mortgages

With a reverse mortgage, which is available to those aged 62 and over, instead of getting a lump sum that is used to pay for a home, a lender gives the borrower monthly payments for your existing home for a fixed amount of time. At the end of that period, the bank owns the home, and the property is then either sold by the lender or refinanced by a family member.

However, these types of mortgages have a bad reputation as a last resort for seniors who can’t keep up with medical bills or the upkeep of their home, but used properly by someone who totally understands what they are getting in to, it can be a useful option. Some analysts have warned that with the growing deficit in America, this type of product may not continue to be available for too much longer.

Getting a Mortgage In The UK

Tough new restrictions introduced by the Financial Conduct Authority in the UK in the spring have forced lenders to prove their customers will be able to afford to pay off loans. The rules are said to ensure both responsible lending by banks and building societies and sensible borrowing by loan applicants, but the so-called mortgage market review has attracted widespread criticism.

Borrowers’ expenditure has been under the microscope like never before, resulting in some not getting the mortgage they applied for. Even people in their 40s have been told they cannot have loans that end after their expected retirement. Due to a fear of breaking the rules, banks are turning down applicants who would more than likely be making repayments in retirement when incomes are lower.

A report released recently by a body representing 24 big lenders in Britain – including Santander, Nationwide, Lloyds and Barclays – warns that even borrowers in their 40s are falling victim to the new regime, and even those in their late 30s seeking increasingly popular longer-term deals risk being turned down. The rules are also a problem for those forced by soaring house prices to take on longer-term loans that have lower monthly repayments.

Uncertainty Over Pensions

Uncertainty over pensions is also making it difficult for lenders to asses mortgage affordability in later life, and this could become increasingly so when new pension freedoms take effect in 2015, with fears that regulation could bring about the extinction of mortgage terms that stretch into retirement.

The new pension freedoms are said to make it difficult for lenders to know if someone will have a steady income in retirement or if they will have blown it on a big ticket purchase. There is no reason that banks cannot lend to someone in their 70s but they are seeking assurances from the borrower that they will be working until the loan ends

Proving Your Income

Problems can arise when taking a mortgage beyond normal retirement age. Lenders will then start asking about levels of income after retirement to demonstrate that the mortgage will remain affordable, and proving that income could be where the difficulty lies.

In all circumstances it pays for older borrowers to research thoroughly all of the options, shop around with different lenders and know the type of mortgage you need and what the best way of finding it is that will suit you and your family for the future.

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Is it time to fire your financial advisor?

aadmin — Thu, 18 Dec 2014 15:05:45 +0000

Do your new year’s resolutions include getting your financial plan in order? Look not only at where your money is going, but who is helping you decide how it gets there. If your new year means you need a new approach, look at finding a new advisor. Here are some reasons to consider making a change.

You don’t have one

Is your financial planner the first person to come to the front desk at your local bank branch or whoever answers the telephone banking line? A financial planner will help give you perspective and look at Even long -term planning rather than what mutual fund or ETF is popular. While you may feel you are doing all right on your own, there may be issues you are not thinking of, especially when in or approaching retirement.

It is no longer a good fit

Over time your needs have changed and your relationship with your advisor may have changed too. The person who helped you with your first home, may not be the person to help you with your plans for downsizing and estate planning. After any major life event or large purchase such, as a home or vacation property, it is a good idea to review your financial plan. If you are looking at investments or products your advisor does not deal with often, a new stage in life may require a new advisor.

It’s been years since…

Can’t remember the last time you actually sat down with, or spoke to, your advisor? In the digital age of web meetings and email correspondence, there is no reason you should not be able to get in touch with your advisor when you need to. If you find that your calls or emails repeatedly go unanswered, or that your advisor never contacts you to update your plan and review your current situation, it may be time to find someone who can give you more attention.

You feel like your advisor does not listen to you

You are going to a financial advisor because you would like some guidance or assistance. That does not mean that you are not entitled to your opinions. Your advisor’s recommendations should reflect your needs, goals and tolerance for risk. Do not stick with an advisor who you feel is bullying you into making decisions you don’t agree with.

Your advisor won’t tell you how he or she gets paid

Whether advisors are working on a yearly rate, fee for service, or on commission, you should be able to get a clear answer about how they are paid and who is paying them. You should also know with all mutual funds and similar investments if there are any options regarding management fees, commissions and how they are paid.

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The biggest retirement fears among Baby Boomers

aadmin — Fri, 18 Oct 2013 12:13:04 +0000

Despite being called the ‘Golden Years,’ retirement is not always easy. The combined challenges of saving enough to live on, frequently declining health, and limited mobility can make retirement a difficult period for many people.

According to a 2010 survey from Allianz Life Insurance Company, Baby Boomers in the United States shared that their biggest retirement-related fears were a combination of health and financial concerns, with the apprehension of outliving their retirement savings topping the list,

“One of the things in the study that was surprising to us was the level of fear,” Katie Libbe, vice president of Allianz, told AARP.com in an interview. “It was greater than we anticipated.”
The study spoke with more than 3,000 Americans aged 44 to 75, and found the biggest fear among 61% of the population was running out of money in retirement, whereas 39% feared death more.

One year later, in 2001, AARP commissioned a study of people aged 50 and over, and found that another common concern among Baby Boomers was the fear of not maintaining their current lifestyle during their retirement years. Sixty-two percent of respondents agreed with that statement. Additionally, more than running out of money and maintaining their current lifestyle, many American Baby Boomers feared crime.

Eighty-one percent of respondents said they were concerned about consumer fraud, with 72 per cent afraid of identity theft, and 64 per cent were on the lookout for deceiving businesses which could hurt their investments.

Outside of financial concerns, the AARP survey found older Americans are, for the most part, hoping to live out their years in their own homes (41 per cent). Nearly one-third (29 per cent) are concerned about losing their ability to drive as they get older.

Szifra Birke, a retirement consultant based outside Boston, Massachusetts, told RetirementHomes.com in a recent interview that although her clients tend to be higher net-worth, their concerns are frequently outward-focused.

“Their biggest concerns are less likely to include finances, but the one that does come up is ‘I think I have enough money, but you never know,” Birke said.

She added that other top concerns she has heard from clients include: ‘What will I do with my time in retirement,’ ‘My spouse wants me to retire, and I’m not ready,’ and ‘My spouse wants something different from retirement than I do.’

Regardless of your financial position, and what you are looking for out of retirement, speaking with a competent retirement advisor and seeking out relevant advice online are great early steps.

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The Differences Between an Interstate and Intrastate Move

aadmin — Wed, 21 Aug 2013 09:32:17 +0000

Knowing which mover is right for you is more than just knowing who is “reliable.” Different types of moves have different types of rules and regulations based on the route your belongings travel. The major distinction comes between an Interstate and Intrastate move. Not knowing the difference between these 2 types of moves can lead to more stress and higher expenses. Being educated in all aspects of your move will help protect you against possible scams, as well as arm you with the knowledge of the regulations and laws that your movers need to follow.

Here is an easy breakdown of the differences between an Interstate and Intrastate move:

Interstate Moves:

What are they?

When performing an Interstate move (sometimes called a “long distance move”) your belongings at some point cross state/country lines. Regardless of the distance of the move (even if it’s only 1 mile), if your belonging cross state/country lines then your move an Interstate move.

How does this affect me?

When a mover performs an Interstate move they are governed by the US Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). Their website provides a comprehensive list of rules and regulations that Interstate movers must follow (such as being licensed and insured). These rules help protect your rights and keep you safe from scam artists and dishonorable movers. Make sure to visit the FMCSA site (protectyourmove.gov) and learn these rules as well as the obligations that your movers have towards you.

Use this Inforgraphic to help familiarize yourself with what constitutes as an Interstate move:

Intrastate Moves:

What are they?

When performing an Intrastate move (sometimes called a “local move”) your belongings never cross state/country lines. Even if you are traveling hundreds of miles, if your belongings don’t cross state/country lines then your move is an Intrastate move.

How does this affect me?

Firstly, an Intrastate move is not regulated by the FMCSA. You may be thinking that without the FMCSA guidelines your movers could easily scam you. While this fear is completely understandable, it’s important to know that each state has its own set of rules and regulations that help protect you from unscrupulous movers. Make sure to do the proper research on what your state’s Intrastate policies are as each state is different from one another (some may be more lenient and some may be stricter).

Every Intrastate mover needs to abide by their state’s guidelines, so it is important to verify their credentials through the appropriate state channels. Here is a reference to help you track down the different governing bodies in each state: Intrastate Moving Requirements

One way to make your move easier is by using a service like 123Movers.com. We are an online resource that can help you find reputable long distance and local moving companies based on the starting point and final destination of your move. Just fill out our quick and easy form and professional movers in your area will contact you with moving estimates. While every mover listed on 123Movers.com has been screened for licenses and insurance, it is still important that you do your due diligence and double check this information as an added safeguard to your move.

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Family and Personal Care

Senior Housing

Which countries have the best pension plans?

aadmin — Wed, 19 Jun 2013 12:11:15 +0000

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Will the fiscal troubles ahead hit you?

aadmin — Wed, 20 Feb 2013 19:06:30 +0000

Economists, policymakers and journalists are fretting about the imperiled state of retirement for the incoming generation of people. Is there any hope for a vast number to turn back the tide of bad news?

New research indicates that a majority of retirement-bound Americans will be financially worse off than their parents, putting at risk a long era of high living standards, reports The Washington Post.

The Great Recession and the weak recovery are considered the culprits

. The economic downturn destroyed 40% of the personal wealth of USA citizens
. High unemployment and low-interest savings accounts have made matters worse
. The surge in the stock market is mainly benefitting wealthy Americans
. A growing number of retirees may be living with children or seeking social-service programs

Possible solutions may be:

. Bolstering of Social Security benefits federal government
. Creation of a new layer of retirement help for future retirees
. Encouragement from employers and goverment to bulk up on retirement savings
. Education to discourage workers from using the money for non-retirement purposes

Obstacles to these solutions, include:

. Concern about the nation’s fast-growing long-term debt
. The political climate to reduce Social Security and other retirement benefits
. Rise in health-care costs
. Growing debt among older Americans
. Rise in employers shifting retirement benefits to workers

Teresa Ghilarducci, director of New York City's Schwartz Center for Economic Policy Analysis at the New School for Social Research, told the Washington Post: “This is the first time that Americans are going to be relatively worse off than their parents or grandparents in old age.”

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Is retirement harder for childless seniors?

aadmin — Thu, 08 Nov 2012 13:37:29 +0000

If you’re looking for online retirement advice, you may have come across some commentators who have suggested leaning on your adult children as resources in your retirement, whether for financial, social, emotional or logistical support.

But what about Baby Boomers and seniors without children? Are they at a retirement disadvantage, and if so, what should they do about it?

According to the Nova Scotia Centre on Aging, the increasing numbers of childless Baby Boomers and seniors are creating an increased need for additional informal caregivers, such as siblings, friends, or even extended relatives.

“It is children who have been doing the bulk of the heavy lifting in terms of elder care in this country,” Janice Keefe, the organization’s director, told a press conference at the Canadian Science Policy Conference earlier this week.

“It is one thing to ask a child to help with personal care, but asking a brother or sister to play that role can be a humbling experience,” she said.

In an era with more childless Baby Boomers and seniors, it becomes more important for all levels of government and policy makers to address the changing reality, Keefe told the press conference.

Are you a childless Baby Boomer or senior? Do you think that puts you at a disadvantage, or not? Tell us why in the comment section below.

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