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Category Archives: Financial

A comprehensive new study from the MetLife Mature Market Institute shows the age of those seeking Home Equity Conversion Mortgages (HECM), popularly known as reverse mortgages, has plummeted in the four years since the collapse of the housing market in the U.S. It also reports that these mortgages, special types of home loans that allow people to draw on home equity without monthly mortgage repayments, have evolved into a way for many older Baby Boomers to help manage urgent financial needs. Boomers age 62–64 currently represent one-in-five prospective borrowers Average age of reverse mortgage borrowers is declining.of the product, which was once associated with a much older age group.

The Study, produced in conjunction with the National Council on Aging (NCOA), reports that the average age of those who have gone through reverse mortgage counseling has declined and is now 71.5 years of age.

The U.S. Department of Housing and Urban Development (HUD) reports a similar decline in the average age of borrowers to age 73. Forty-six percent of homeowners considering a reverse mortgage are under age 70. The percentage of 62- to 64-year-olds who are prospective borrowers has increased 15 percentage points since 1999, despite the fact that younger applicants have had lower available loan limits.

The study concludes that older homeowners will need assistance and consumer education to ensure that they make wise decisions about the most appropriate use of their “nest egg” of home equity. A consumer guide – The Essentials: Reverse Mortgages is available for free. It is aimed at helping potential borrowers learn more about the product and its implications for their finances.

Fear is keeping many retirees or soon-to-be retired people from making financial decisions according to a recently released study by Financal Engines  a California based investment advisory firm. One common reaction to their financial fears: Retirees did nothing. “I really don’t have a financial plan,” said a 64-year-old retiree quoted in the report. Said one… Continue Reading

Many Baby Boomers and seniors are finding themselves returning to the job market – either full time after being retired or part time in a “working retirement” state. Finding work is challenging:  Full-time retirement is simply more difficult than it was a generation ago. It’s certainly more expensive. Many employers have reduced or eliminated retiree… Continue Reading

AIPatHome.com Advisor Louis Tenenbaum wrote us about a report he helped prepare:  “Aging in Place 2.0 Rethinking Solutions to the Homecare Challenge” released earlier this month by MetLife’s Mature Market Institute. According to the report communities, government and the public and private sectors will need to make sweeping changes to accommodate older Americans’ desire to remain… Continue Reading

Smart Money reports: “The young are fearless and bold. The old are scared and cautious. That’s the conventional view of how we feel about risk over the course of a lifetime. We start out brash — ready to bet it all on a long shot. But as we age, we need to hoard our resources and make sure we’ve provided for the slow shuffle into frailness and vulnerability.”
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Diana Ransom writing for Smart Money discusses the pros and cons of Long Term Care Annuites that are scheduled to go tax free in 2010. Click here to read the full story. Continue Reading

AIPatHOME.com: Age in place at home, it's where you want to be.