Blog

How to keep savings. Safe investment. Financial literacy. Banking secrecy. Audit and accounting. How much to pay taxes. Inflation and risks. Economic forecasting. Finance guide. Retirement planning

<h2>Understanding Reverse Mortgages</h2>Many homeowners over 62 are considering reverse mortgages. This financial tool can help turn home equity into a tax-free income stream. However, myths about reverse mortgages often cause confusion. Let's explore these misconceptions and uncover the truth.<figure id="figure-7v3uegk71m3c93u19"><img id="7v3uegk71m3c93u19" src="https://images.unsplash.com/photo-1706902598892-a97494171d00?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxM3x8cmV2ZXJzZSUyMG1vcnRnYWdlfGVufDB8fHx8MTczMTI4MjM4MHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="reverse mortgage" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1706902598892-a97494171d00?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxM3x8cmV2ZXJzZSUyMG1vcnRnYWdlfGVufDB8fHx8MTczMTI4MjM4MHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Myth 1: The Bank Owns Your Home</h3>A common myth is that the bank takes ownership of your home with a reverse mortgage. This is not true. Homeowners retain ownership and can live in their home as long as they meet loan obligations. These obligations include paying property taxes and insurance.It's important to understand that reverse mortgages are loans. They are secured by the home, but ownership remains with the homeowner. This is similar to a traditional mortgage.<h3>Myth 2: Reverse Mortgages Are Only for Cash-Strapped Seniors</h3>Another myth is that only those in financial trouble use reverse mortgages. In reality, many financially secure seniors choose reverse mortgages. They use them to diversify income streams during retirement. This financial tool offers flexibility and security.<figure id="figure-0jb91z9qsrm3c93vtg"><img id="0jb91z9qsrm3c93vtg" src="https://media.gettyimages.com/id/1216842867/photo/conceptual-photo-showing-printed-text-reverse-mortgage.jpg?b=1&s=2048x2048&w=0&k=20&c=NEGuAVK2oscMSEkV9tIU-r3_FeoMKDWUsKVESNkNUDY=" alt="Conceptual photo showing printed text reverse mortgage" title="Conceptual photo showing printed text reverse mortgage" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="null" data-positionY="null" data-fullWidth="false"/></figure>Reverse mortgages can help homeowners manage their retirement finances. They provide a steady income, which can enhance quality of life. This is appealing to many, regardless of their financial situation.<h3>Myth 3: Heirs Will Be Saddled with Debt</h3>Some believe that reverse mortgages leave heirs with debt. This is not the case. Reverse mortgages are non-recourse loans. This means the debt will not exceed the home's value at the time of sale.Heirs can choose to sell the home to repay the loan. Alternatively, they can pay off the loan and keep the home. The choice is theirs, and the debt will not impact their personal finances.<figure id="figure-0q7occuc7m3c93xn7"><img id="0q7occuc7m3c93xn7" src="https://images.unsplash.com/photo-1541140911322-98afe66ea6da?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNHx8aW5oZXJpdGFuY2UlMjBwbGFubmluZ3xlbnwwfHx8fDE3MzEyODI4NTF8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="inheritance planning" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1541140911322-98afe66ea6da?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNHx8aW5oZXJpdGFuY2UlMjBwbGFubmluZ3xlbnwwfHx8fDE3MzEyODI4NTF8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Myth 4: High Fees Make Reverse Mortgages Unaffordable</h3>Concerns about fees often deter homeowners from considering reverse mortgages. While fees exist, they are comparable to those of traditional mortgages. It's crucial to weigh these fees against the benefits of a reverse mortgage.Many homeowners find that the benefits outweigh the costs. A reverse mortgage can provide financial stability and peace of mind during retirement.<h2>Conclusion</h2>Reverse mortgages offer a valuable financial tool for homeowners over 62. By understanding and debunking these myths, you can make informed decisions. Consider how a reverse mortgage might fit into your retirement plan. It could provide the financial freedom and security you seek.

Unveiling the Truth: Debunking Common Myths About Reverse Mortgages

Reverse mortgage written on a memo stick.

<h2>Understanding Reverse Mortgages</h2>Reverse mortgages have long been a topic of confusion and misinformation. While they can be a valuable financial tool for some, many people are hesitant to consider them due to various myths and misconceptions. In this post, we'll debunk some of the most common myths about reverse mortgages and provide you with the information you need to make an informed decision.<h3>Myth 1: The Lender Owns Your Home</h3>One of the most pervasive myths about reverse mortgages is that the lender will own your home. This is simply not true. With a reverse mortgage, you retain ownership of your home, just as you would with a traditional mortgage. The lender is merely extending a loan to you based on the equity you have built up in your home. You remain the owner and can live in your home for as long as you wish, provided you meet the loan terms.<figure id="figure-29tcdcgrbdm46b5eb2"><img id="29tcdcgrbdm46b5eb2" src="https://media.gettyimages.com/id/2154752387/photo/real-estate-concept-business-home-insurance-and-real-estate-protection-real-estate-investment.jpg?b=1&s=2048x2048&w=0&k=20&c=7uzJXtiNiy3gdOh6UZrQkdOlH_HEjgoLPn0TkX0htuQ=" alt="homeownership" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure><h3>Myth 2: You Can Be Forced Out of Your Home</h3>Another common misconception is that you can be forced out of your home if you take out a reverse mortgage. In reality, as long as you continue to meet the obligations of the loan—such as paying property taxes, homeowners insurance, and maintaining the home—you cannot be forced to leave. The loan doesn't become due until you sell the home, move out permanently, or pass away.<h3>Myth 3: Reverse Mortgages Are Only for Desperate Homeowners</h3>Many people believe that reverse mortgages are only for those in dire financial straits. While it's true that a reverse mortgage can provide much-needed funds for those who are struggling, it can also be a strategic financial tool for a variety of homeowners. Retirees looking to supplement their income, pay off existing debts, or fund home renovations can all benefit from the flexibility and financial security that a reverse mortgage offers.<figure id="figure-p27pixu56m46b5eb2"><img id="p27pixu56m46b5eb2" src="https://media.gettyimages.com/id/82277513/photo/boy-and-grandfather-holding-steering-wheels.jpg?b=1&s=2048x2048&w=0&k=20&c=_qQHpEf-bu_vCs4QE42OQSsp6bMAKhbEwKmphQvcfRQ=" alt="retiree" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure><h3>Myth 4: Heirs Will Be Saddled with Debt</h3>Concerns about leaving debt to heirs are another reason many people shy away from reverse mortgages. However, reverse mortgages are non-recourse loans, meaning that the amount owed can never exceed the home's value at the time of sale. If the loan balance is higher than the home's value, the lender absorbs the loss, not your heirs. Your heirs can choose to repay the loan and keep the home or sell the home to pay off the loan balance.<h3>Myth 5: Reverse Mortgages Are Too Complicated</h3>While reverse mortgages can seem complex, they are no more complicated than other types of mortgages or financial products. It's essential to work with a reputable lender who can guide you through the process and explain the terms clearly. Additionally, HUD requires that all potential borrowers undergo counseling with an independent third party to ensure they understand the loan and its implications fully.<figure id="figure-swckm3tuxlm46b5eb2"><img id="swckm3tuxlm46b5eb2" src="https://media.gettyimages.com/id/1961171464/photo/corporate-auditor-calculating-budget-with-calculator-on-his-office-desk-insight.jpg?b=1&s=2048x2048&w=0&k=20&c=3pdGlDBvAj2tySMSltcQNUVn4QsP4-idT4vscJ5UuWc=" alt="financial advisor" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure><h3>Final Thoughts</h3>Reverse mortgages can be an excellent financial tool for the right individuals, providing them with additional income and peace of mind. By debunking these common myths, we hope to shed light on the realities of reverse mortgages and help you make a well-informed decision. If you're considering a reverse mortgage, take the time to research and consult with a trusted financial advisor to determine if it's the right choice for you.Remember, knowledge is power. Understanding the truth about reverse mortgages can help you make the best financial decisions for your future.

Debunking Myths About Reverse Mortgages: What You Need to Know

<h2>Understanding Reverse Mortgages</h2>Reverse mortgages have become a popular financial tool for retirees looking to leverage their home equity. Unlike traditional mortgages, a reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash without having to sell their home or pay additional monthly bills. This financial product can be a vital lifeline for those seeking financial stability in their golden years.For many, the idea of a reverse mortgage might seem daunting, but real-life success stories highlight its potential benefits. By understanding how others have successfully utilized this financial strategy, you can gain insights into achieving your own financial freedom.<figure id="figure-daotyc6vhom3wb3l6c"><img id="daotyc6vhom3wb3l6c" src="https://images.unsplash.com/photo-1560518883-ce09059eeffa?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxyZXZlcnNlLW1vcnRnYWdlfGVufDB8fHx8MTczMjQ5NTUxN3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="reverse-mortgage" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1560518883-ce09059eeffa?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxyZXZlcnNlLW1vcnRnYWdlfGVufDB8fHx8MTczMjQ5NTUxN3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>The Journey to Financial Independence</h2>One inspiring story is that of Jane and Robert, a retired couple from Florida. After years of enjoying their retirement, they found themselves facing unexpected medical expenses. Instead of selling their beloved home, they turned to a reverse mortgage. This decision provided them with the necessary funds to cover their medical bills while allowing them to stay in their home.Jane and Robert's story is a testament to how reverse mortgages can offer a solution to financial challenges without uprooting one's lifestyle. Their experience showcases the potential of reverse mortgages to provide peace of mind and financial security.<h3>Benefits of Reverse Mortgages</h3>There are several advantages to choosing a reverse mortgage, including:<ul><li>Financial Flexibility: Access funds as needed, whether as a lump sum, monthly payments, or a line of credit.</li><li>Retain Home Ownership: Continue living in your home without the burden of monthly mortgage payments.</li><li>Tax-Free Income: The funds received from a reverse mortgage are generally tax-free, providing additional financial relief.</li></ul><figure id="figure-7s7waxymgm3wb3l6c"><img id="7s7waxymgm3wb3l6c" src="https://media.gettyimages.com/id/2148505296/photo/mortgage-borrowers-concept-individuals-or-entities-who-have-taken-out-a-mortgage-loan-from-a.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=nnv7nXM_svhZnZmkBqsI1olSZ25WQ6URYLbyyYNdIik=" alt="Mortgage borrowers concept. Individuals or entities who have taken out a mortgage loan from a lender to finance the purchase of a property. Money bag and miniature house" title="Mortgage borrowers concept. Individuals or entities who have taken out a mortgage loan from a lender to finance the purchase of a property. Money bag and miniature house" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2148505296/photo/mortgage-borrowers-concept-individuals-or-entities-who-have-taken-out-a-mortgage-loan-from-a.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=nnv7nXM_svhZnZmkBqsI1olSZ25WQ6URYLbyyYNdIik=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Real-Life Impact: A Case Study</h2>Consider the case of Tom, a retired teacher from California. With a modest pension, Tom was struggling to cover his living expenses. By opting for a reverse mortgage, he was able to supplement his income, allowing him to travel and enjoy activities he had always dreamed of. Tom's story illustrates how reverse mortgages can enhance one's quality of life by providing the financial means to pursue personal passions.Tom's experience underscores the importance of thoroughly researching and understanding reverse mortgage options. By working with a knowledgeable financial advisor, he was able to select a plan that best suited his needs, ensuring a secure and fulfilling retirement.<h3>Considerations and Cautions</h3>While reverse mortgages offer numerous benefits, it's crucial to be aware of potential drawbacks. Homeowners should consider:<ol><li>Costs and Fees: Reverse mortgages can come with high upfront costs and fees, which should be carefully evaluated.</li><li>Impact on Inheritance: Since the loan is repaid from the home's equity, it may affect the inheritance left for heirs.</li><li>Eligibility Requirements: Homeowners must meet specific criteria, including age and home equity, to qualify.</li></ol><figure id="figure-e1ct1p7m7fm3wb3l6c"><img id="e1ct1p7m7fm3wb3l6c" src="https://media.gettyimages.com/id/1225189541/photo/my-goals-and-financial-freedom-written-on-orange-note-paper-and-coins-stack.jpg?b=1&s=2048x2048&w=0&k=20&c=S3z_oP9_lJJ0hg4_OJ5FkBwiBP-8ny-uezv5LjzXPmQ=" alt="My goals and financial freedom written on orange note paper and coins stack" title="My goals and financial freedom written on orange note paper and coins stack" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="null" data-positionY="null" data-fullWidth="false"/></figure><h2>Conclusion: Empowering Your Retirement</h2>Real-life success stories like those of Jane, Robert, and Tom demonstrate the transformative potential of reverse mortgages. By providing financial freedom and flexibility, reverse mortgages can empower retirees to live comfortably and pursue their dreams without financial strain.If you're considering a reverse mortgage, take the time to explore your options and consult with a financial advisor. With careful planning and informed decision-making, a reverse mortgage can be a valuable tool in achieving financial independence and enhancing your retirement lifestyle.

Real-Life Success Stories: Achieving Financial Freedom

Your home is not only your sanctuary—it’s also likely your most valuable asset. Keeping your house in good condition year-round doesn’t have to be difficult or expensive and can help you avoid significant expenses down the road. Our home maintenance checklist will give you a good overview of all the tasks you should add to your calendar. It can also help you identify tasks you may have forgotten or not be aware of.Quarterly Maintenance&nbsp; These essential tasks address your safety and comfort and should be done every three months.&nbsp;<ul><li>Test your smoke and carbon monoxide detectors buttons to ensure they are still operational. Fresh batteries should be put in once a year. </li><li>Do you have a fire extinguisher? Check the gauges to make sure it’s correctly pressurized and will work in an emergency. If you don’t have a fire extinguisher, get one. </li><li>Change the air filter in the heating/ac return to cut down on dust and allergens and improve the energy efficiency of your units.&nbsp; </li><li>Test all of the GFCI (Ground Fault Circuit Interrupter) outlets to make sure they are working properly. &nbsp;</li></ul>Exterior Maintenance&nbsp; Maintaining the outside of your house is an ongoing responsibility. The first step in assessing what needs to be done is to walk around and check out the condition of your property. Keep in mind you don’t want to take on any major outdoor projects during a snowy winter or your area’s rainy season, but it’s good to have an ongoing sense of what’s coming up when the weather improves.&nbsp;Paint&nbsp; Nothing says “run-down” like a paint job that’s faded, cracked, or peeling. Quality paint helps protect your siding or stucco from the elements, insect intrusion, and dust. A good coat of paint can even prevent exterior wood from dry rot and costly repairs.&nbsp;Gutters&nbsp; Gutters are designed to channel rainwater away from your roof, walls, and foundation. If they’re clogged, they can damage your exterior paint, contribute to roof leaks, even facilitate water getting inside your house. It’s good to clean your gutters twice a year, especially in the fall while your trees are shedding leaves and before your region’s rainy season. But you may have to do it more often if trees surround your roof.If you live in an area where you get snow or ice storms, ice can accumulate along your roofline and damage your gutters. So be on the lookout for ice dams and remove them. If you’re uncomfortable being up on a ladder, this is an easy, inexpensive task for a handyman.&nbsp;Windows&nbsp; Notice any holes in your screens, or are you missing screens entirely? If you love fresh air, but don’t want to welcome in all kinds of flying insects, then you need to repair or purchase new screens. Most local hardware stores can help you fix holes or replace missing screens.&nbsp;Roof&nbsp; Any watermarks on your ceilings? Check the roof for missing shingles and make sure any flashing around skylights or exhaust vents are intact and not damaged. If you notice any problems, contact a local roofing contractor.&nbsp;Decks and Wooden Fencing&nbsp; These features can amp up the curb appeal of your home. After winter, inspect for dry rot, severely split wood, mold, or algae buildup. If necessary, replace or treat the wood in those areas. Then wash, sand, stain/varnish, and seal. It’s recommended you do this every two to three years.&nbsp;Concrete Driveways and Patios&nbsp; Your concrete areas should be cleaned and resealed about every five years. Remove stains like gasoline and grease as soon as possible. If your concrete is stained, try pressure washing or cleaning products made specifically for concrete.If there are sizeable cracks, you can fill those in with caulk and sealer so water runoff doesn’t widen them. Before you resurface, remove any concrete that’s damaged. If the cracks are deep and extensive, hire a professional. If the cracks are small, caulk and sealers are available from your local hardware store.&nbsp;Grounds Maintenance&nbsp; Nothing spruces up a home like a well-manicured lawn and a thriving garden. In parts of the country dealing with drought, you can replace a lawn with artful rock gardens and succulents. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;Trees&nbsp; Pruning supports your trees’ growth and structure. Prune in late fall to early winter when the trees are dormant. &nbsp;If you have a tree that isn’t doing well, have a licensed arborist come out and inspect it. If it’s sick or dying, remove it before it falls and damages property or hurts someone. If branches threaten any power lines, your local utility will be happy to come out and prune them for you. Early spring is the best time of year to fertilize your trees and shrubs. Young trees should be fertilized annually. Older, more established trees can be fertilized every two to three years. &nbsp;Flower Beds and Shrubs&nbsp; Mulch in mid to late spring to protect your plants’ root systems, add nutrients to the soil, and reduce erosion. If you live in a warmer climate, you may need to add mulch to help retain moisture. And in colder areas to help insulate your plants from snow and ice. &nbsp;Lawns&nbsp; Where you live depends on when you should fertilize. If you live in frost-free areas, fertilize in late spring or early summer, with a second application in late Summer. In colder regions that feature fescue and bluegrass lawns, fertilize in October or November. Your local garden center can advise you. Be sure to water the lawn for a few days before applying the fertilizer to help with absorption. &nbsp;Interior Maintenance &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; Winter is the best time to take on interior chores because people spend most of their time indoors anyway.&nbsp;Water Heater &nbsp; Your water heater’s temperature and pressure (T&amp;P) valve is a safety feature designed to keep your water heater from exploding in the case of extreme pressure buildup-up. You need to test it at least once a year to ensure that it will adequately expel water. &nbsp;&nbsp;Clothes Dryer&nbsp; Make sure that the clothes dryer vent is appropriately venting to the outside. Clean the lint collector each time you use it. And clean the dryer ductwork at least once a year. According to the U.S. Fire Administration, 2,900 home clothes dryer fires are reported each year and cost upwards of $35 million in damages.&nbsp;Plumbing &nbsp; Fix leaky plumbing promptly. Check under the sinks and along the base of bathtubs and showers. Make sure there’s no standing water in the basement. You don’t want to let water accumulate anywhere in your home. It’s an open invitation for black mold, dry rot, and termites. Also, check your water main and meter for leaks.&nbsp;Are your showerheads or faucets clogged? Remove the showerheads and faucet aerators and soak them in white vinegar to dissolve and clean out any mineral sediment restricting flow. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Heating and Air Conditioning &nbsp; Your furnace and A/C compressor, and coils should be professionally serviced and cleaned twice a year. The EPA recommends cleaning the air duct system only if: &nbsp;<ul><li>Mold testing has indicated there is mold growing inside the ducts.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</li><li>The insulation around the ducts is damp and moldy.&nbsp;</li><li>Ducts are infested with vermin.&nbsp; </li><li>There’s an excessive amount of dust or debris in the ducts.</li></ul>If your home is heated with steam heat, drain your boiler to clear out any sludge that’s collected before winter starts, and be sure to refill it before you use it.&nbsp;Chimney&nbsp; A clean chimney prevents house fires and blockages that can cause carbon monoxide poisoning. The National Fire Protection Association (NFPA) recommends cleaning your chimney at least once a year. It’s also good to look for a chimney sweep certified by the Chimney Safety Institute of America.&nbsp;Attic&nbsp; Assess if the insulation is in place and in good shape. Make sure that attic fans are in good working order and there are no leaks in the ceiling.&nbsp;Garage&nbsp; Make sure the garage door automatic safety shut-off is working correctly. Check for signs of rats, bats, roaches, and termites, especially in the basement, attic, garage, and crawlspace. Rats spread disease and can eat through electrical wiring causing fires. According to Orkin, termite damage and repair cost U.S. residents an estimated $5 billion annually. If you see any signs of infestation, call in a professional exterminator.&nbsp;Special Winter Maintenance for Colder Regions&nbsp; Once the temperature starts to dip, there are specific tasks you need to perform to avoid costly repairs later on.&nbsp;<ul><li>Shut down your sprinkler system for the winter including the timer. </li><li>Make sure your water main shut-off valve and any above-ground piping is insulated even if it’s in the garage. </li><li>Drain any water from outside pipes. </li><li>Clean and cover your pool. </li><li>If your A/C unit is outside, cover it for the winter. Window units should be sealed inside and out to prevent cold drafts. </li><li>Inspect your windows and doors frames for cracks and caulk if necessary. </li><li>Make sure your snow blower is operational</li><li> Need Help Managing These Tasks? &nbsp; It can be challenging to keep on top of everything that needs to be done. Many homeowners use apps like HomeRoutines, HouseHappy, and HomeZada to help them organize and schedule their maintenance. However you track your tasks, having a home maintenance checklist can be invaluable and keep you up-to-date on upkeep issues.</li></ul>And don’t feel you have to take on these tasks yourself, either. Reputable companies, like Angi (formerly Angi’s List), provide affordable local pros rated through verified reviews. So, if you’re not into DIY, you’re sure to find a handyman you can trust to help you get the job done right.&nbsp;Seniority is published by Finance of America Reverse LLC. The views expressed in this publication are those of the author alone and do not necessarily reflect the views and opinions of Finance of America Companies. This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.

Home Maintenance Checklist

Many people dream about taking the trip of a lifetime, about crossing a big item off their bucket list. But simply wishing and hoping won’t make it so. Think your dream is too expensive? Not feasible for one reason or another? With the proper research, guidance, and plenty of planning, the trip you dream about today can happen tomorrow—or at least in the near future.&nbsp;Choose and Research Your Destination &nbsp; “Be realistic when choosing your destination,” says Paula Twidale, senior vice president of travel for AAA, Inc. “Talk honestly about your desires and your abilities—financial and physical.”&nbsp;Twidale also recommends starting a year ahead for your big trip to choose the prime season (i.e., avoid monsoon season in Thailand; double check when the tulips bloom if you’re going to Holland), book air travel early, and choose the route that works best for you. “The more research is done ahead of time, whether online, at the library, or talking to family, friends or travel agents … the more informed you are, the better choices you will make,” she says.&nbsp;Know before you go isn’t just a catchy rhyme. Check with Wikitravel.com to find alerts and advisories about the weather, political problems in a country, or other potentially dangerous situations. &nbsp;Exploring the US in an RV&nbsp; Sandy Chesler of Boca Raton, Florida, always wanted to travel to the American West and see its beauty for herself. She lived in Germany when her husband, Eddie, was stationed there with the U.S. Air Force, and they traveled around the world once their four kids were grown. But she always wanted to see “my own country.” Around age 65, she and her partner, Jimmy (she and her high school sweetheart reconnected a couple of years after the death of her husband), bought a 21-foot RV and began to put her dream into place.&nbsp;Fifteen years later, they have visited all 50 states (They parked the RV in California and took a 15-day cruise to the Hawaiian islands, which she counts.) and upgraded their RV four times to a 40-foot Winnebago Adventurer, and she couldn’t be happier. Her bucket list has been written on scraps of paper and tucked into books and drawers. Now, they’ve crossed off destinations such as Mt. Rushmore, the Grand Canyon, and “lots of Civil War sites.”&nbsp;“We learned a lot—we couldn’t drive as far as we thought we could; campgrounds in the popular areas sometimes need to be booked months in advance; we began to tow our Jeep and use it to go to events and activities, using the RV as our home base; we joined travel clubs to get discounts on gas, campgrounds and more,” she says. “We have met many fascinating people and are still friends with one couple we met when we first started 15 years ago.”&nbsp;Planning Mode Never Stops&nbsp; “We plan our next trip down to the last detail as soon as we return from the last one,” she says, adding that “Jimmy does all the planning,” using Trip Advisor to start their research. They find campgrounds, consider the time of year and weather forecasts, and how far they want to drive in a day. “Know what you want and plan, plan, and plan some more.”&nbsp;Set Your Budget&nbsp; Setting a budget for any trip can be stressful, especially for the big dream trip, when you want everything to go perfectly. Maybe you can’t afford a luxury, four-star hotel but don’t want to sleep in a hostel. This is when Twidale advises seniors to consider booking a tour. “Tours offer cost-saver options, between budget and luxury,” she says. “You can opt to have fewer meals included or for more free time with fewer activities, which add costs. You can scale down the amount of territory you will cover or the amount of time you will be on vacation.”&nbsp;When traveling overseas, be sure to know the exchange rate and where to trade U.S. dollars for the local currency. Remember to plan for—and know what to expect—food costs, incidentals, and tips, where appropriate. Create an emergency fund for unexpected expenses, and don’t forget the souvenirs!&nbsp;It’s important to be realistic and clear about what the “trip of a lifetime” means for you. “You don’t want to blow your life savings, but you can still travel and experience your dream,” she adds.&nbsp;Budgeting An African Safari for Two &nbsp; For retired teachers, Rick and Barb Ziegler of Doylestown, Pennsylvania, the dream of taking a two-week African safari came true at the end of 2022 after a year of planning. Although the couple has traveled extensively, they say this was the biggest trip they’ve ever taken, and South Africa was the furthest from home. Because of the intricacies, they used a travel agency and joined a tour. “We also will use a tour or agent if we’re going somewhere where we don’t speak the language,” says Rick. “We planned the Canadian Rockies, Nova Scotia, and Iceland on our own, for example.” &nbsp;Everything on the safari was handled, including all transportation, tours, and guides. “If people aren’t frequent travelers, I recommend group tours, so they don’t need to do a lot of thinking about budgeting once they decide which group to join,” says Barb. Additional excursions can be added, often arranged by the hotel. The couple visited a cheetah reserve, an add-on they arranged later.The Zieglers say they want to be comfortable but not extravagant. They knew traveling to South Africa would be more expensive, but it truly was their trip of a lifetime, and as Barb says, “If that’s your big trip, maybe your only trip, spend! Do what you need to make it a reality.”&nbsp;Safety and Medical Concerns&nbsp; Safety must always come first, especially if you have physical and medical concerns to consider. If you are traveling abroad, Twidale recommends visiting the U.S. State Department’s site and registering for STEP, the Safe Travel Enrollment Program. That way, you are on the U.S. State Department’s radar should there be a reason why U.S. citizens need to be alerted or accounted for in that region.&nbsp;Registering is simple, enter your passport number and other information, and you’ll receive email alerts if something is happening that you should be aware of. You can also research a country’s overall safety rating at that site.&nbsp;“Travel insurance is a must,” she says. Medicare doesn’t always cover care outside the United States, so medical insurance and unexpected trip interruption (think pandemic) coverage is valuable. Shop around. “This may feel expensive, but it pales in comparison to what you’re spending on a trip of a lifetime. Travel insurance is underrated. You do not want to be in a situation where you are stuck somewhere during an emergency with no contingency plan.”&nbsp;Safety Checklist&nbsp; Twidale lists some simple safety precautions to take before your trip:&nbsp;<ul><li>Make two copies of your passport and leave one at home with someone. Keep the original and copy in separate places while on your trip.</li><li>Copy the items in your wallet, and put credit cards and others with a magnetic strip in safety bags to prevent anyone from electronically stealing that information.</li><li>Get tracking chips for your luggage.</li><li>Wear a cross-body bag with a strap that can’t be cut.</li><li>Ensure all medications are refilled; use a national chain in case you run out or lose them.&nbsp;</li></ul>Hiking the Camino de Santiago Safely&nbsp; For Ken Kissinger, a 71-year-old retired building/construction inspector from Audubon, Pennsylvania, foregoing travel insurance and or any possible safety precaution wasn’t an option. Hiking the Camino de Santiago (The Way of Saint James) in Spain is arduous mentally and physically. After seeing the movie “The Way” in 2010, he began dreaming about making the 500-mile hike. He began training in earnest when he retired in July 2021. The trek spanned about six weeks in the fall of 2022.He wanted nothing to mar what he calls “an epic journey, a pilgrimage of the body, mind, and soul.” His policy covered travel mix-ups, medical care, and emergency medical evacuation. A lifetime of backpacking gave him confidence that he could handle the physical exertion, and he read extensively about the Camino. “The Brierly Guide” was his main information source. Other online sources of information like YouTube videos and online Camino forums helped him know what to expect and how to prepare, including ways to keep money and other valuables safe.&nbsp;He wore a money belt, a fanny pack with his wallet and phone and kept his passport and other papers separated and secure. When he showered in one of the many albergues (hostels), he stayed in; these precious belongings came with him in a hanging mesh bag.&nbsp;Packing Smart for Your Trip&nbsp; Kissinger was a true minimalist when it came to packing—one change of clothes, two changes of socks and underwear, raingear, and a few toiletries (He washed out clothes most nights.) “Pack less, but pack quality. Check the weather and temperatures for the time of year and location you are going,” he says.&nbsp;Tips for Packing Minimally&nbsp; Twidale advises adopting a minimalistic mindset to packing&nbsp;<ul><li>Travel is much less formal nowadays; pack specific to your destination.</li><li>Tours allow only one bag, and airlines charge for almost everything.</li><li>Know how to mix and match clothing.</li><li>Wear layers and be realistic about the weather.</li><li>If you’re walking every day, leave the heels at home. Love the leather jacket? It won’t wear well in the rainforest.</li></ul>Plan to Capture Your Memories&nbsp; Take a camera. Kissinger found his Pixel 4A 5G cell phone did the trick nicely, “Add storage to your cloud account, as you may be surprised to find you’re running out of space for all the wonderful photos you will take,” he recommends.&nbsp;Homework Pays Off&nbsp; What all the travelers featured in this article have in common is that they did the legwork to make sure their trips were bucket list worthy. Dream big, but don’t skimp on the research and planning needed to ensure your trip of a lifetime lives up to your dreams. Most importantly, choose a trip that is important to you. Remember, it’s YOUR dream—no one else’s.&nbsp;Seniority is published by Finance of America Reverse LLC. The views expressed in this publication are those of the author alone and do not necessarily reflect the views and opinions of Finance of America Companies. This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.

How to Plan the Trip of Lifetime

Although many Americans spend decades planning for retirement, the topic is often a source of anxiety. A study by the National Institute on Retirement Security reports that 56% of Americans are concerned about achieving a financially secure retirement, meaning they’re not sure they can afford it. A majority worry about running out of money.&nbsp;The good news is that many retirees have an asset they may not realize can supplement their retirement income or provide needed liquidity: their home. A reverse mortgage can reduce monthly expenses and generate an income in one fell swoop. For people in the right circumstances, a reverse mortgage can be a good idea, offering access to cash flow that would otherwise be locked in their home.When Might a Reverse Mortgage Make Sense? &nbsp; Generally, a reverse mortgage can make sense when a homeowner wants to delay tapping into tax-advantaged funds such as retirement accounts to cover necessary expenses. A reverse mortgage has several advantages that can improve a retiree’s financial situation, including:&nbsp;Reduce Monthly Expenses&nbsp; Homeowners over 62 may qualify for a reverse mortgage, removing mortgage payments from their monthly budget. Eliminating that monthly mortgage payment can positively impact a retiree’s financial situation by reducing the amount of cash outflow and freeing up those funds for other things. That can reduce the need to draw down other retirement accounts, which can extend their useful life.&nbsp;That said, it’s important to understand a reverse mortgage does not eliminate home-related expenses, and borrowers are still obligated to pay property taxes, homeowner’s insurance, and any monthly dues associated with the home. They are also required to maintain the property.&nbsp;Generate Income&nbsp; A second instance when a reverse mortgage could make sense is when a retiree wants to use the funds currently tied up in their home. Serving as a line of credit, the borrower can use a reverse mortgage to pay current expenses or create a pool of money available for the future. Because a reverse mortgage is a type of loan, any proceeds are income tax-free.&nbsp;Delay Receipt of Social Security Benefits&nbsp; Relying on the proceeds of a reverse mortgage to pay expenses can also allow retirees to wait to start receiving social security benefits. The longer Americans wait to receive social security, the larger those monthly payments will be. Although payments can be received starting at age 62, they can be as much as 30% lower than if the recipient waits until their full retirement age. Income from a reverse mortgage can allow retirees to wait to receive those benefits. A financial professional can help you decide if this strategy makes sense for you.&nbsp;Make Gifts to Heirs or Fund Philanthropic Activities&nbsp; Although they may not need a reverse mortgage to cover living expenses, some retirees opt to apply for one to spread their wealth during their lifetime. That is, the motivation for taking a reverse mortgage may not be self-focused. Funding college educations or buying homes for children or grandchildren may be possible through the use of home equity. Taking that approach, retirees can enjoy seeing the impact of those gifts during their lifetime.&nbsp;When Is a Reverse Mortgage Not a Good Idea?&nbsp; For all the situations in which reverse mortgages are a good idea, there are also situations in which they aren’t. The following are some situations in which a different financial vehicle is most likely a better option.&nbsp;Existing Sufficient Assets&nbsp; When evaluating a retirement plan as a whole, it’s important to look at the diversity of assets. If a retiree has enough cash flow to maintain safe asset distribution rates, meaning 4% or lower, long-term care protection, and additional cash reserves, leveraging their home equity may not be necessary.&nbsp;Short Time Horizon&nbsp; A reverse mortgage may also not make sense if the retiree doesn’t plan to stay in their current home long-term. In that case, a reverse mortgage would need to be repaid before a move is made, including all the associated costs. A better decision may be to move and, if needed, secure a reverse mortgage on the new home.&nbsp;Ultimately, a reverse mortgage is likely most beneficial for a retiree whose home represents most of their net worth. Securing a reverse mortgage allows them to convert an illiquid asset into cash, to be used however they choose. With all major financial decisions, a qualified financial planner can help you weigh and understand your options.&nbsp;Seniority is published by Finance of America Reverse LLC. The views expressed in this publication are those of the author alone and do not necessarily reflect the views and opinions of Finance of America Companies. This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.

When is a Reverse Mortgage a Good Idea?

Kellie Collins, Reverse Mortgage Specialist

I help homeowners over 62 turn their home's equity into a tax-free income stream through reverse mortgages, providing financial security and freedom in retirement.

Blog

Unveiling the Truth: Debunking Common Myths About Reverse...

Debunking Myths About Reverse Mortgages: What You Need to...

Real-Life Success Stories: Achieving Financial Freedom

Home Maintenance Checklist

How to Plan the Trip of Lifetime

When is a Reverse Mortgage a Good Idea?