RETIREMENT PLANNING TIPS WHEN YOU’RE IN YOUR MID-60S

Retirement planning can be quite a challenge, regardless of your age. However, there are ways to help you prepare for those golden years. Here are retirement planning tips for those currently in their mid-60s.

Once, 65 years old was the common age for retirement. Since then, much has changed. The Social Security Administration has increased the age when total retirement benefits are available. Additionally, various company-sponsored plans have shifted from defined benefit to defined contribution plans.

Retirement Planning Tips

With these updates, many savings programs are not yielding expected returns. Consequently, many people have no choice but to postpone their retirement. Even if you feel financially stable, it doesn’t always mean retirement at 65 is necessary. Many 65-year-olds still enjoy working and love their jobs. However, certain considerations must be addressed when planning retirement in Myrtle Beach during your mid-60s and beyond.

Are You Ready To Retire?

If your employer offers retirement at 65, consider if you’re prepared to quit, financially and psychologically. If not, determine if you can work a few more years or become a consultant. This should ideally be done at least one year before retirement age, as some employers start the retirement process early. Many employers now focus on hiring and retaining skilled, experienced staff to fortify their intellectual banks.

Remaining a salaried employee means steady income and employer-provided benefits. However, consulting offers flexibility and a working retirement.

Create A Retirement Budget

Seniors who have saved for years may feel they can finally enjoy their retirement money. While true, overspending can deplete savings quickly. To avoid this, budget your expenses, including new costs like travel, for a realistic calculation of what you can afford in retirement. A budget is crucial in retirement when income mostly comes from

• savings
• pensions
• social security benefits.

Use Your Home For Extra Income

Consider downsizing to a smaller, less expensive home or moving to a lower cost-of-living area. This can provide extra funds for your retirement nest egg. If you prefer staying in your home but need extra income, consider a reverse mortgage. Under this program, lenders use your home equity to provide tax-free income.

Before applying for a reverse mortgage in Myrtle Beach, ask about

• fees
• mortgage terms
• payment options

Income Management

If you need income from savings to finance retirement, aim to lower taxes and maximize what you keep. Your financial profile determines the best time to use specific income types. Generally, withdrawals from employer-sponsored plans, traditional IRAs, or other tax-deferred accounts should occur when you have a lower income tax rate, reducing the income tax owed on these amounts.

For more information on retirement planning and reverse mortgage loans, contact David Stacy Reverse Mortgage Specialist.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

REVERSE MORTGAGE AND SENIORS WITH LIVING TRUST

Seniors who need extra cash or income to cover unexpected expenses can borrow against their home equity? Yes! They can get a loan that is known as a reverse mortgage. For those who plan to put their houses in living trusts or those with one already, the path to getting this loan would be a bit trickier.

This kind of loan can provide you with the extra income. It will help cover

• home repairs
• basic living expenses
• renovations,
• unexpected costs.

Even with the loan’s known disadvantages, reverse mortgages remain popular. A reverse mortgage loan can still coexist with living trusts.

Mortgage First, Then Trust

The majority of reverse mortgage lenders won’t object when borrowers transfer the title to their houses to their living trust. They can do so even after you take out a reverse mortgage. But you must notify the lender about it.

Trust First, Then Mortgage

In the event your house is in your trust already and you find out that you are eligible for a reverse mortgage, you can still get the loan. But, your trust document as well as the beneficiaries must satisfy all the needed requirements.

Transferring A Home With A Reverse Mortgage Into A Living Trust

What if you already have a reverse mortgage loan on your house when you created your living trust? As a trustee, you can use the real estate powers given to you to transfer it into your trust. But before you initiate a transfer, you first need to notify your lender. The latter needs to check that your trust agreement will meet the requirements needed. That applies if you were a trustee obtaining a reverse mortgage loan in Myrtle Beach on a house that’s in your living trust already.

For instance, the lender would confirm that all existing beneficiaries who are named in the trust can live in the house for as long as they want. The lender may have other stipulations like asking the trust to legally assume the obligation of the borrower to pay off the debt to avoid difficulty in executive the mortgage, so immediate notification is important.

Qualifying For Reverse Mortgages

Now let us deal with the second situation. Getting a reverse mortgage for a home whose title is already in your living trust. You will most probably consider the most famous kind of mortgage, the HECM or the Home Equity Conversion Mortgage. HECMS are issued by the government but the one who backs them is the federal government. The lender will make the cash available to eligible borrowers from their home equity.

The borrowers must be at least 62 years old in order to qualify for a Myrtle Beach reverse mortgage. They must be using the house as their primary residence and should own the home or have enough home equity.

The existing interest rate, age of the borrower, and other factors will determine the amount you’ll qualify for. Approved borrowers could choose to get unscheduled installments like a line of credit, regular payments, a mix of both, or a lump sum.

Getting A Reverse Mortgage If Your House Is In A Living Trust

Let’s say you’ve qualified for a loan, you still have to get one. To get it on a house that is currently in your living trust, you have to confirm that your trust as well as all the borrowers meet the requirements set by the lender.

Before you take out a reverse mortgage loan on your home, you should check that your trust provides you with the power to get this done. Once you’ve made sure that you’ve can encumber trust real estate, you should check if you meet the requirements set by the lender for homes that are held in living trust. Whether the mortgage or your living trust came first, you don’t have to pay the loan until you as well your beneficiaries sell the home or transfer title, pass away, leave the house, or violate the terms of the loan agreement.

Call David Stacy Reverse Mortgage Specialist now for additional guidance about reverse mortgages and living trusts.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

WHY YOU SHOULD OR SHOULD NOT GET A REVERSE MORTGAGE

A reverse mortgage has had its ups and downs since they were introduced during the Reagan administration. It is a financial tool that lets older people tap the equity of their home and age in place. This type of loan can help free up cash when seniors are in retirement. And in some instances, get rid of monthly mortgage payment.

Who Can Get A Reverse Mortgage Loan?

Reverse mortgage loans are made for older people who would like to tap into the equity of their homes. When doing so, they could boost their monthly cash flow without having to worry about monthly payments. If you plan to take out a reverse mortgage, you need to be at least 62 years old. Potential borrowers should undergo a home counseling session to make sure that they understand what they are getting themselves into.

This type of loan is only for primary residences. If you are planning to take out this loan against your vacation home or investment property, then you may not qualify at all. You have to live in the house for more than six months.

Understanding The Value Of Your Home

You also need to know that you can’t borrow over 80% of the value of your home, as much as the FHA maximum of $726,525 for 2019. But the older the borrower is, the higher the loan he or she can get. Generally speaking, the percent you may qualify to borrow is your age less 12 years.

There are certain obligations you need to follow through as well. These include paying homeowner’s insurance, property taxes, home maintenance, and mortgage insurance premium. Your lender will also check whether you have enough disposable income to fulfil these obligations. In certain instances, lenders may require that the equity from the loan be set aside to cover the ongoing expenses.

Who Should Consider A Reverse Mortgage?

If you are planning to remain in your home for a very long time throughout your retirement days, and you don’t wish to pass down your home to your kids, then you are a good candidate for a reverse mortgage loan. In case you would like to preserve other investments or assets in retirement, you can get more funds through the reverse mortgage.

The best candidate for a reverse mortgage loan in Myrtle Beach is a person who has accumulated diversified and substantial retirement savings.

Who Should Avoid This Type Of Loan?

Borrowers who don’t have enough equity in their homes, a reverse mortgage in Myrtle Beach isn’t a good idea. In case you don’t have a good understanding of how this type of loan works, then you should avoid it. Also, if you plan to leave your property to your children after your death or if you plan to move out of the house eventually, then this type of loan is not for you. It’s because the balance of the reverse mortgage needs to be paid off, which can only be done by selling the house.

Call David Stacy Reverse Mortgage Specialist if you are looking for more information about reverse mortgage. We’ll help you determine if this option is right for you.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

REVERSE MORTGAGE: THE UNEXPECTED RETIREMENT PANIC ATTACK

Retirement is challenging enough even without the added feeling of terror. It’s because you don’t know where the next check will come from. Moreover, the trick is to convert your capital into an income that you get per month well before you leave the workplace.

Furthermore, when it comes to retirement planning, there are a few simple steps that you could take. They can help you make sure that you have a steady income source the moment you retire. And, arranging this ahead of time can help you avoid underspending, overspending, and even panic attacks.

Reverse Mortgage: Planning For Retirement

Sources of Income

In addition, the first thing you need to do is inventory the possible sources of income once you retire. For instance, you know that Social Security could only be given out as an income; there will be no lump sum benefit. Moreover, you have to ask yourself if there are other possible benefits. Also, find assets that you can turn into a monthly check.

Moving on, if you are lucky to have a well-prepared benefit plan from your employer, you should think hard before you cash it in. You can minimize your stress by taking a lifetime income rather than a lump sum. Similarly, defined contribution plans build up as targeted posts of money during retirement.

Lump Sum

Additionally, even though taking a lump-sum distribution or even getting it into an IRA are the basic approaches, check if you can make withdrawals from your 401(k) funds as an annuity or systemized withdrawal. By doing so, it is as if your employer is like paying you from a different account instead of another when you retire.

Furthermore, in case you are covered by a nonqualified deferred compensation plan, your employer could offer you different options. You can choose how the funds will be paid out such as an ongoing income. Especially, if you won’t be able to roll it over to an IRA, this could be the simplest way to add to your monthly income.

Immediate Annuity

Additionally, if you have a regular or average life span, make the most out of your good health. You can use this to get a mortality premium by purchasing an immediate annuity. Consequently, you lock in an income that you cannot live past your life expectancy. And, when you live longer than expected, you will surely make the most out of pooling annuities.

Deferred income annuity

Moreover, you may also take into account a deferred income annuity. With this, the annuity starts at a certain age in the future. If an annuity begins payments later on, it is a good way to deal with your longevity risk’s tail end, and you will cover the problem of living way too long.

Equally important, before you surrender the contract and pay taxes, find out if you could use the cash values to give you an income for several years. Additionally, you could also tap into this equity by exchanging the policy into an immediate policy.

Reverse Mortgage

Furthermore, in case you have significant home equity, you could choose a tenure option if you take out a reverse mortgage in Myrtle Beach. By doing so, this would offer you an ongoing income every month through accumulating costs against the equity in your home.

Additionally, that income would continue until you decide to leave or sell your home or if you pass away. Moreover, there is no recourse against the reverse mortgage loan; the lender could only tap your house for repayment, so it really could act as a stream of retirement income.

Final Thoughts on Retirement

Most of these income-generating plans need to be planned ahead if you wish for them to work. Some are just a matter of ticking out the box and watching the money flow in. Ideally, you wish to arrange your retirement income plan so that things will set in once you retire and you’ve got something less to worry about.

Finally, you should avoid these panic attacks caused by not having any income plan. You don’t want to get it done in such a way that it will cost you financially. These are the problems you have to factor into your retirement income planning so that you can maximize your cash flow as well as after-tax payouts.

Call David Stacy Reverse Mortgage Specialist. Find out how you can live a financially stable and comfortable life after retirement by making sure that you have a steady income source like a reverse mortgage.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

REVERSE MORTGAGE: A PERFECT ADDITION TO YOUR RETIREMENT PLAN

Some people say that parents don’t need to save up for their kids’ college education. There are college loans to help them. But, their parents can’t find a loan that will help them live a comfortable life after retirement. But, wait for a second. Are you sure there’s no loan for that? Isn’t a reverse mortgage loan the perfect option for seniors?

What Is A Reverse Mortgage?

Reverse mortgage loans is comparable to a line of credit or loan against your home equity. One main difference is that the lender will pay you and not the other way around. Through this type of mortgage, you will have the cash you need. It will supplement your retirement funds like the benefits you get from social security.

An HECM is a popular mortgage type, which represents around 90% of the total number of reverse mortgages.

The house is one asset that seniors tend to forget. They often neglect to include them when planning for their retirement. These loans are good ways of making the most out of the equity of their house. It will pay for retirement costs while not having the need to give up their house. This type of loans may be a good option for those who are house rich but cash poor.

Who Can Get Reverse Mortgage Loans?

People who are at least 62 years old and own a home can apply for these loans. In case there is an existing mortgage on the house, the remaining balance should be small. This way, it could be settled using the money you get from your reverse mortgage in Myrtle Beach. The house which you are taking your loan against should be your primary residence. It is also important that you are not delinquent on debts like federal student loans or federal income taxes.

What Are Your Financial Obligations?

The borrower of the reverse mortgage in Myrtle Beach needs to be responsible for maintaining the house. They will also pay the HOA dues, property taxes, utility bills, flood insurance, and the homeowners insurance.

How Much Can You Get?

The amount that you will receive will depend on the younger borrower’s age, the HECM FHA limit, and appraised value. The proceeds of the loan increase with the borrower’s age and decrease if the interest rates are higher.

In case the spouse of the borrower is less than 62 years old, the spouse won’t be eligible to become a borrower. But, the proceeds of the loan would be based on the younger age of the spouse, so the spouse could stay in the home following the death of the borrower, in case the borrower passes away first.

This loan comes with a limit of 50 percent of the equity of your home. The loan applicant could borrow over 50%. This applies when they use the proceeds of the loan to settle their existing mortgage.

How Will You Get The Money?

In case you have a variable interest rate, then you can get the funds through different options. You can get it as a credit line, lump sum or as level payments. All these applies as long as you reside in the house or as level payments for a fixed term. If you have a fixed interest rate, then you will get the money as a lump sum.

Interest will be charged on how much you get, after you receive it. Because you don’t make regular payments unlike a conventional mortgage, you can expect the interest to pile up and compound, which means it will eat into the equity of your home.

Is The Loan Taxable?

Since it’s just like getting an advance on the loan, the money that you get from your loan is not taxable. Given that, loans doesn’t affect Medicare or social security benefits. But a reverse mortgage could have an affect on your public benefits like Medicaid and SSI, if you just save and do not spend the money you get from the loan.

Call David Stacy Reverse Mortgage Specialist now and find out if this type of loan is the perfect option for you as part of your retirement planning.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook

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UNDERSTANDING REVERSE MORTGAGE: DO THEY IMPACT YOUR BENEFITS?

There’s one concern that often arises with a reverse mortgage. It’s whether receiving such a loan will affect one’s benefits. For borrowers, there are some common issues. Including these are the following, whether their Medicare, Social Security, or pension will be impacted once they opt for this type of loan. But, amidst the myriad of myths surrounding this topic, it’s crucial to understand the facts.

How A Reverse Mortgage Affect Your Benefits

Social Security

First and foremost, it’s important to note that this loan will not affect your Social Security benefits. Regardless of whether you’ve opted for a reverse mortgage in Myrtle Beach or not, you will continue to receive your Social Security benefits. So, there will be no alterations. Also, the contributions you’ve made throughout your employment years ensure that your benefits remain intact, even after opting for this loan type.

Pension Benefits

Similarly, taking out this loan should not pose any threat to your pension benefits. Your pension, accumulated through years of hard work and dedication, remains unaffected by this loan. Additionally, the financial security you’ve built up over the years is safeguarded, allowing you to enjoy the benefits you rightfully earned during your working years..

Medicaid

The one area where this loan may potentially impact your benefits is Medicaid. Eligibility for Medicaid hinges on maintaining minimal assets, typically no more than $2,000. While income does not influence eligibility for this type of loan, it may affect your ability to access Medicaid benefits. However, it’s essential to note that this is the only program that may be influenced by this loan type.

Seeking Guidance from a Specialist

If you’re considering this type of loan and have concerns about its potential impact on your benefits, it’s advisable to seek guidance from a Reverse Mortgage specialist in Myrtle Beach. They can provide comprehensive information tailored to your specific situation. Additionally, you make informed decisions regarding your financial future.

Take the Next Step: Contact a Specialist

So, if you have questions or uncertainties regarding this type of loan and their implications for your benefits, don’t hesitate to reach out to David Stacy Reverse Mortgage Specialist today. Additionally, they can offer personalized advice and guidance, helping you determine whether this type of loan aligns with your financial goals and needs.

Call David Stacy Reverse Mortgage Specialist today and determine if this type of loan is the right choice for you. Your financial peace of mind is just a phone call away!

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436
https://www.reverse-info.com

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook