Times are changing and not necessarily for the better. There was a time when we could look forward to working for 30 some years and then retire. We could rely on a pension from our employer, some savings and Social Security. If we were lucky we would have minimal debt and good health. We could look forward to spending our retirement days travelling, enjoying our grand kids or our hobbies.
But not so any more for many seniors, especially those Boomers just entering their golden years. Many have found that their pensions have been dismantled by their employers, or like me, have bounced around too often to really development enough of a pension to rely on. Social Security is in trouble and can’t be relied on for more then another 20 or so years.
In an excellent article, Boomers’ Financial Future Spells: W-O-R-K, Doug Bates of the Oregonian, writes that many seniors will need to continue to work or go back to work to make ends meet. He quotes John Rother of AARP “we estimate that approximately two-thirds of early boomer households, who are aged 54 to 63, are financially unprepared for retirement — that is, they have not accumulated enough savings to maintain their lifestyle as they age. Meanwhile, their predicament is worsening with the fall in home values and stock prices that began in 2007.”
For many, working at least par time will be ok. It will keep them active, help them to meet their needs and stimulate the economy. But for those who were expecting to have a retirement like their parents, there might be a surprise waiting for them.
Just getting rid of their mortgage or debt would allow many to retire. This can be accomplished by accelerating their current payments, or using a Reverse Mortgage to eliminate their monthly mortgage payment. For others, it will be staying in the work force in their current jobs or finding another job more appropriate for their aging bodies.
Those who plan to stay in their current home for many years, and who qualify for a Reverse Mortgage, could find that a wonderful solution is to trade their current equity for a more comfortable retirement. They need to speak with an expert who will put their long term best interests at heart. A properly structured Reverse Mortgage can provide access to he equity and well as protect it. A poorly structured one will deplete the equity quickly and leave the senior with few options in the future.
For those who need to aggressively pay down their debt, or get better advice on retirement planning, a company like Financial Destinations, Inc (FDI) is a good alternative. FDI can provide a blueprint for paying debt off in a fraction of the time as well as access to CPA’s, Financial Planners, Atty’s, 24/7 access to a Physician, discounted prescriptions and an excellent investment product. For more information, visit www.MorrisEquityGroup.com or call me.
If you desire to help others become debt free and financially literate, there is an excellent income opportunity as well. This could be a great way to reduce your spending and increase your income in retirement, or as you approach retirement.
