The New wave for the Baby Boomer and Seniors

Jan. 2, 2009 - PRLog -- Now that the baby boomers oldest has hit 62 years of age it is becoming increasingly more obvious and apparent that they are going to be hitting a huge wall. The current conditions that seniors over the age of 62 currently are feeling is, despair and disbelief in our system.

With the rising cost of health care, medicines, food, and of necessities they are felling the crunch. Not to mention; seeing their life saving and investments disappearing faster then the value of their homes, going down the drain.
If you are pushing on the door of retirement or you are the child of a parent who is nearing the golden years, then you need to listen up!
One of the biggest questions that I hear all of the time in the Reverse Mortgage industry is as follows in order.

1.   What is going to happen to my Childs inheritance?
2.   What is it going to cost my heirs when I am gone?
3.   How will I recover from the big loses of my investments?
4.   How come my home is the only asset that I have left and that is loosing value?

There are many other issues that I here from seniors but these are the three biggest ones that come up most often. The answers to these questions are not easy and they are very painful. But here goes!

•   Question 1: If you have enough to live on until the end comes then don’t worry about it; “You are fortunate”, but if you among the masses then you and your children need to take stock. First your children need to realize that an inheritance is not a God given right, it is a gift that a parent leaves, in some case and a nightmare in others. The bottom line is; if there is anything to leave after you live. So many people worry about this and they don’t worry about living today. If you are going to leave something behind why not try to not leave debt that has to be paid off just to clear the assets. Since the average senior will need over $217,000 at age 62 just to live until age expectancy to cover things like medical, and long term care. If they need more then they will loose all of there assets anyway.
•   Question 2: This is really a loaded question simply because of the unknown, how long we will live. Since none of us knows that; it means the true cost is going to be when we pass on then it really is a big unknown. So what are the solutions! Well there is insurance to pay these items that have to be paid off! The problem with this statement is that when the policy was purchased it was enough at that time. But since over the year’s inflation and deflation has taken over, the dollar that we thought we had and what it could buy then is much different now! Then there is they will have to sell my home! In today’s market that is not as profitable and as easy as it once was, and it looks like that may stay that way for sometime to come. Since none of us have really gone through these economic times unless you are over the age of 90 we really don’t know what the outcome is going to be and how long it is going to take.
•   Question 3: This too is an unknown since each and every person’s situation is different. The people who think they know are only speculating since they have never gone through anything of this magnitude before. The problem is this! If you are over the age of 62 and you have lost all of the interest and now the principle is being eaten up then how can you recover in your lifetime. You really can not go out and get a job (there aren’t any to get) the dollars you have are buying less and will for sometime to come.
•   Question 4: Well let’s look at that, if you purchased your home 30 years ago you paid very little in comparisons to today’s values. If you purchased your home a few years ago then there is a problem. But let’s look and the home that was purchased 30 years ago. If you purchased your home then you paid a lot less then you children did for their home so most of it is pure gain. So for argument sake let’s say you paid thirty thousand then. In the market of 2000 to 2004 it was growing at a rate of 12% per year and over the last thirty is was averaging 5% per year. Before we go into this we need to look at the facts of the situation. If homes had over the last eight years had maintained the 5% appreciation which had been the norm for as long as records have been kept then we would not be in this situation in the first place. But it didn’t so her we are, so back to the thirty-thousand homes. When you purchased that home that money was a lot, but you took out a mortgage to pay for it. You put down some money and paid over the years. When you purchase it you never expected it to be an investment it was a home to live in and raise your children. It has been only over the last few years that people have look at their home as an investment. Seeing values increase in their neighborhoods, raise thoughts that their maybe something to the investment thing. So now your home maybe worth $300,000 or more, but is it really. What you need to do is ask yourself this question! If you were going to buy your home today would you pay $300,000 or what ever to buy it today?  In normal cases you would not think that your home is not worth that kind of money.

So what does all this mean to a senior, well it means different things to all people! But if you are like the majority of seniors you are thinking about your financial future. Unfortunately; if you are over the age of 62 your resources are limited simply because of your age. Now I am not saying that you are old, but the fact is there are more resources and opportunities available to your children then are available to you. (This is the cold hard facts).

So what can you do to stop your investments and or savings, plus the value of your home from disappearing? Well let’s take a look at your investments first!

•   If you are like many people you, are looking at your investments going down faster then you can make a piece of toast. Some people have told me they have loss 50-70% of there total 401k or stock portfolio and the bleeding keeps coming. So how to stop the bleeding and the loss of your principle? Well there are a number of ways that I have found in my research. You can take it out in cash, or you can role it over into a safer more stable investment. i.e. money market or T-Bill (this is called a cash account) you may not make a lot of interest, but you won’t lose you base.
•   As to the value of your home unless you do something short of selling it there really is only one solution that I have found that will stop the bleeding of your home. It will also place money in your hands or payoff your existing mortgage. The Reverse Mortgage! In a Reverse Mortgage you pay for Mortgage Insurance protection this will basically freeze the value at the time it appraised. If the value keeps going down you are loosing the opportunity to keep the money for future use and in some case you may need the money now! If the value should go up in the future you can always refinance the Reverse Mortgage and receive more money.
Remember if you choose to do nothing then when you need money from any of the resources mentioned above it may be less then you need.

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As a company we only work to help seniors and their families who are over the age of 62 to acheive some sort of financial stability in these tought economic times. All we do is Reverse Mortgages. One stop education source with our Reverse Mortgage Guide to Receive a Free copy of the Reverse Mortgage Guide and a Video online and in the mail visit http://bestmortgageplans.com/guide.htm?Id=83249