Y E A R 2 | V O L 4 | M A Y 2 0 2 2 REVERSE Insider R E V E R S E M O R T G A G E F U N D I N G N E W S L E T T E R
CELEBRATE MOMS AND OLDER AMERICANS MONTH Inside, find tips for women's health - and financial health - to learn from as you're in or planning for retirement
Ol der Amer i cans Month was es tab l i shed i n 1963. At that t ime , on l y 17 mi l l ion l i v i ng Amer i cans had reached the i r 65th bi r thday . Accordi ng to the Nat iona l Counc i l on Ag i ng , today ’ s 65-year -ol d can expect to l i ve on average another 19 year s . This month, older Amer icans have a reason to celebrate.
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As we celebrate Older Americans Month this May, remember that by maintaining your physical and mental health, you can help ensure your safety and independence to enjoy your retirement years to the fullest. Our theme for the month, Age My Way, focuses on how older Americans can comfortably age in place at home. Keep reading to learn how a reverse mortgage loan from Reverse Mortgage Funding LLC (RMF) can be a retirement gamechanger for older homeowners — improving your financial future to enjoy happier, healthier retirement years.
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.
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.
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.
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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.
*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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3 IMPORTANT FACTS TO KNOW ABOUT WOMEN’S HEALTH
Maintain a healthy weight. Studies have shown that even moderate weight loss can decrease your risk of osteoarthritis by 50%. Make sure your fitness routine includes exercises to build strength in your quadriceps, the large muscles that run along the front of your thighs and help stabilize your kneecaps. Walking in high-heeled shoes increases stress on the knee joint, making osteoarthritis even more likely. So what can you do to fight back against knee pain? 1. Arthritis risks Did you know that female athletes are more likely to injure their knees due to differences in knee and hip anatomy? Injuries such as ACL tears can dramatically increase the risk of developing osteoarthritis later in life. Science has long proven that women have a longer life expectancy than men; and that women’s health differs from men’s both physiologically and emotionally. And since the month of May marks several important health reminders — Arthritis Awareness Month, Blood Pressure Month and Mental Health Awareness Month, as well as Women's Health Week (May 8-14) — we’re putting the focus on some important differences to keep in mind as you age.
2. Blood pressure The blood vessels in female hearts are smaller in diameter and more intricately branched when compared to the male anatomy. This may be one reason why women’s heart attack symptoms are often radically different than men’s. And because women are often primary caregivers for children, households and aging family members, they are more likely to delay seeking treatment, despite the fact that high blood pressure can lead to a heart attack, aneurysm or stroke. Protect the health of your arteries by eating a heart-healthy diet, keeping blood sugar and alcohol intake under control, and maintaining a regular fitness program. 3. Mental health One in eight women experience depression in their lifetime. That’s twice the rate of men — and that was before the added stress of the pandemic. The good news? More people are being open about their mental health struggles, helping to shine a light on its prevalence and de-stigmatize a legitimate medical condition that requires treatment.
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Communication is key to feeling better. Be open and honest with your healthcare provider about what you’re experiencing, and let them help guide you to next steps and treatment options. Don’t overlook the importance of financial health. Enjoying good physical health means living longer — and that means you need a plan for financial wellness in retirement. Outliving your money is the biggest fear for those heading toward retirement, according to Transamerica’s 2021 Retirement Survey. But retirement security may be closer than you think. Home equity is generally the largest asset for most homeowners, but it’s too often overlooked as a means to fund a comfortable retirement. That’s where a reverse mortgage can help. You may have heard a lot from friends and family or even from television about what reverse mortgages are, but it's important to weigh all the pros and cons for yourself. It all starts with education so you can decide if a reverse mortgage solution is the right choice for you. Connect with one of RMF's local loan specialists who can help you explore your options for funding a healthy, active retirement.
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You might not be ready to explore the benefits of a reverse mortgage loan, but that doesn’t mean it’s not a valuable tool that can benefit your whole family now. If you’re part of the “Sandwich Generation” — simultaneously raising a family, funding your children’s education and caring for aging parents — you may be carrying the financial strain of having to worry about your own costs while helping parents plan for retirement. One source of relief? Your older loved ones’ home equity. According to the National Reverse Mortgage Lenders Association (NRMLA), if your parents are struggling to meet their month-to-month expenses or to pay for additional health expenses, a reverse mortgage may be the best solution for all of you. An untapped source for retirement funds? A vast majority of older Americans have their wealth tied up in their home equity. Homeowners age 62 and older collectively own $9.2 trillion in equity. It’s generally the largest asset for most households, yet it’s typically underutilized for retirement. Leveraging those funds, as your parents continue to age comfortably at home, can be a smart financial planning option for them while relieving the burden on you. How much money can my parents expect? The amount of funds depends on the age of the youngest borrower, home value, interest rate and upfront costs. The proceeds may be received as lump sum, monthly payments or a line of credit that’s available if and when they need. *They can also use any combination of these options, such as taking part of the funds as a lump sum and keeping the rest in a line of credit. SHOULD MOM AND DAD GET A REVERSE MORTGAGE? WHAT ADULT CHILDREN SHOULD KNOW
What are their responsibilities? Your parents have certain mortgage obligations to keep their loan in good standing: 1. The home must remain their principal residence. 2. They must maintain the home and keep up with general repairs.
What about my inheritance? While having an inheritance may be nice, like most adult children you’d prefer your parents (or other older family members) live safely and comfortably without having to worry about finances. According to NRMLA research, there is an emerging intergenerational consensus that aging parents should spend whatever they have to live as well as they can for as long as they can. Plus, with a reverse mortgage, borrowers are less likely to draw upon investment portfolios for financial support, allowing them to potentially grow and even serve as a separate financial legacy for heirs. Making an informed decision. Reverse mortgages are not for every borrower. Reach out to to learn if it’s the right tool for your loved ones.
* 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
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GROWING OLDER CAN BE COSTLY: ARE YOUR RETIREMENT FINANCIALS IN GOOD HEALTH?
Home health aide. Professional home health aides are paid an average of $4,195 a month to visit a patient’s home each day to check vitals, administer medications and assist with the activities of daily living. Adult foster care. Costs range from $1,500 to $3,500 per month. While supervision, meals and assistance with medications and bathing are provided, medical care is not. Adult daycare. You can expect to pay approximately $1,560 a month, depending on location and amenities. Most centers offer meals, exercise, activities and transportation, and some also have services for the memory impaired. The financial freedom to age in place. If long-term care plans include you or your family members remaining home, consider an option that can help you free up some funds, while staying put — a reverse mortgage loan. Available to older homeowners, a reverse mortgage allows you to tap into the equity you’ve built up in your home over the years. You can access the funds as a lump sum*, monthly payments or a line of credit that’s available if and when you need it to cover healthcare costs and so much more. For information, or to schedule an in-person appointment with a local loan specialist, reach out to RMF today at. We look forward to helping you explore your financing options for a happier, healthier retirement.
May 25th is National Senior Health and Fitness Day — the nation’s largest older adult health and wellness event. On this day, more than 100,000 seniors will participate in local health and wellness events across the country. Older individuals benefit from physical activity in numerous ways. For example, staying active can help: • Reduce fall risk • Maintain healthy joints, muscles, flexibility and strength • Control blood pressure • Ease anxiety • Increase the ability to live independently In fact, a recent survey conducted by Reverse Mortgage Funding and Research America found that 96% of respondents will proactively make healthy lifestyle changes to keep declining health at bay for as long as possible. But should health needs require extra care, the survey of 1,000 Americans ages 55 and older also found that less than 15% of respondents have long-term care insurance. Part of a healthy retirement is preparing for the unexpected Sixty percent of Americans will need long-term care at some point in their lives. This includes a range of services and support — from driving to getting dressed to making meals, as well as health-related care. And many prefer assistance that allows them to remain at home. Determining how much you might need depends largely on your plans for the future: • How will you pay for out-of-pocket medical costs?
• Are you relying on family to provide care? • Do you have long-term care insurance to supplement Medicare coverage?
For those without a hefty savings to fall back on, the costs can be overwhelming:
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