Get Involved

Always stay focused on what your goals with a prospective borrower

reverse mortgage newsYour voice is needed. John urges reverse mortgage professionals to get involved with local government officials, build relationships, and be part of the legislative process.

About John Luddy: John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

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Economist Claims Annuities ‘Safer” than HECM

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Syndicated Columnist Recommends Cross-Selling Strategy…with a Twist

 

reverse mortgage newsJust as the reverse mortgage suffered much negative media coverage and hand-wringing from financial pundits, so have annuities. If an annuity sounds familiar to reverse mortgage professionals, it should. Annuities were the financial product most often associated with what many considered a questionable and unethical practice- the cross-selling of financial products investing the proceeds into annuities.Surprisingly, one columnist and economist recommends taking out a traditional mortgage and investing in an annuity.

An annuity is a contractual agreement between an investor and typically an insurance company. A lump sum is invested and then can be ‘annuitized’ or paid out over a period of time, deferred until a later date for full withdrawal, or rolled over into another investment. There are four basic types: immediate, fixed, indexed and variable. An immediate annuity converts a lump sum premium investment into an immediate stream of payments over a specified period of time, usually over one’s lifetime. This is often referred to as a Single Premium Immediate Annuity (SPIA). A fixed annuity guarantees a declared interest rate. The indexed annuity is a variant of the fixed but credits interest based on the percentage growth tied to marked indices such as the S&P500 or the Dow Jones Industrial Average (DJIA). Variable annuities invest funds into mutual funds or other market investments that can be subject to loss of principle in many instances.

Syndicated columnist Laurence Kotlikoff opens his column with the statement, “HUD fails to mention a clear-cut and, to me, far safer way, at least for older people, to tap home equity.” But is Kotlikoff’s ‘way’ truly a safer option? Let’s examine his suggestion more closely.

“HUD fails to mention a clear-cut and, to me, far safer way, at least for older people, to tap home equity. This entails taking out a long-term fixed mortgage on your home and using the proceeds to purchase a fixed annuity payment.

Stay Focused

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Always stay focused on what your goals with a prospective borrower

focused2What’s your focus when you’re on the phone with a prospective borrower? What’s your goal when you meet in the home? How about before & after HECM counseling?.

About John Luddy: John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

Fill out my online form.

Caregiving: Who Will Take Care of Me When I’m Old?



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post imageSince 1989, eldercare expert Joy Loverde has been promoting the causes, concepts, and needs of an aging population. Author of the forthcoming, Who Will Take Care Of Me When I’m Old? (October 2017) Loverde specializes in new-product development and consults with mature-market advisors, health care providers, senior housing administrators, product manufacturers, and other members of the fast-growing eldercare advisory industry.

Despite our ongoing focus on reinventing retirement, Loverde maintains that 50 is NOT the new 30, and planning ahead is essential.

“We’re each going to have an extra 30 years, and if we don’t want to age like our parents, what are we planning to do?” She recommends we ask ourselves “4 Big Questions”:

  • When am I old? What’s my aging set point?
  • Who am I now? You may be married, but get divorced or be widowed. You may be single, and get married. You may adopt a pet.
  • What’s all this age for, anyway? This is the era of the solo citizen — and if we’re not aging alone now, we probably will be if we live long enough.
  • Who will be my advocate? People who are in our lives now may not be there tomorrow. How do we plan for a revolving door of people throughout our lives?

Retirement and Old Age Are Not the Same

Planning for old age is not the same as planning for retirement, says Loverde. In an era where we can easily live an entire generation beyond when we stop working, we need two distinct sets of life plans.

To plan for old age, start with your caregiving years. What did you learn from caring for parents, grandparents, spouse/partner, in-laws, friends, neighbors, etc.? What would you do differently? The advantage of having this perspective is, it brings midlife professionals and those approaching sixty up close and personal with old age: money, housing, legal paperwork, end-of-life issues.

The elderly have long been invisible, often, sadly, by their own design. In an emergency, such as the Chicago heat wave of 1995, many “invisible” elders perished because they did not open their doors when people knocked to check on them.

Aging Advocacy

What is a senior’s plan to remain visible in old age? As a reverse mortgage professional, this is an important inquiry for your clients and prospects, especially if they do not have any younger family members. A senior must be “on purpose” about being seen; they cannot assume someone will recognize their needs.

One way is to develop relationships with people of all ages earlier in life. My lifelong friend Ellie was 44 years my senior, yet we were sisters and best friends; she was always interested in learning what was going on in others’ lives, and as a consequence, had many acquaintances and friends across the age spectrum. Even in her final years, she wasn’t alone or lonely. “Seniors must create a purposeful lifestyle. Be vital. Be of importance in your community. Be a part of the solution,” says Loverde.

How do you find an advocate? A guardian of your goals? An advocate is distinct from a caregiver, yet might also be someone you hire: an elder law expert, for example, or someone from a professional advocacy group.

The key is to plan ahead, and never stop the planning process. Once you have someone in place as POA and have filled out an advance directive, review it at least annually to make sure it’s still what you want.

Aging In Place Necessitates Action

Planning also means readying your home for your later years now, reminds Louis Tenenbaum, a leading authority on aging in place and founder of HomesRenewed, a coalition of business, government, non-profit and consumer stakeholders.

One of the first contractors to dedicate his remodeling business to aging in place in the early 1990s, Tenenbaum became curious about why such a good idea had so little traction in the marketplace. He researched the intersection of aging, housing, services, consumer motivation and market incentives, which led him to launch HomesRenewed.

“The bulk of long-term care will occur in single family, owner occupied homes…but the homes are not prepared,” according to a Harvard Joint Center for Housing Studies.

Encourage your HECM clients and prospects who desire to age in place to be aware and prepare! The more interconnected, interdependent, and interested in planning they are, the more enjoyable and engaging their future is likely to be.

Finally, says Loverde, make every effort to stay as healthy as you can for as long as you can, which will lessen the need for assistance later on.

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What are your thoughts ? Please leave your input in the Comments section below, and share this post on social media using the Twitter, Facebook and LinkedIn icons at the top of this page. Thank you!

Using a HECM Instead of Long-Term Care Insurance

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One Financial Planner Suggests Two LTC Insurance Alternatives

reverse mortgage newsIf you were to eavesdrop on a typical meeting with someone in their 50’s with their financial advisor, chances are you would here the sensible advice to purchase long term care insurance. This practical recommendation is rooted in the fact that nearly 70% of those aged 65 and older will need long term care services at some point in their lifetime. However skyrocketing long term care premiums has one financial planner recommending alternatives.

George Gagliardi is a certified financial planner focused on creative solutions to help preserve and grow his clients’ assets. A recent MarketWatch article shows that Gagliardi is skeptical of traditional retirement advice when it comes to protecting his client’s assets from the ravages of health emergencies and long-term care costs. Long term care costs are not the only threat, the other is the risk of exploding premium rates.  Federal employees participating in the long-term care insurance program learned this harsh lesson in 2016 when their premiums jumped 126%. Two choices were offered- pay the higher premium and retain your current coverage or pay the same premium for less coverage. A spike in premiums had a direct impact on a senior’s cash flow and quality of life.

Few financial planners stray from conventional recommendations and approaches to asset management and preservation. Unfortunately, conventional wisdom yields typical results. Gagliardi takes a different approach favoring two alternatives: hybrid long term care policies and the Home Equity Conversion Mortgage.

Walking into the Lion’s Den


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reverse mortgage newsWinning over those who already oppose the reverse mortgage

There may be times when meeting with the adult children of a potential borrower or with a group of skeptical financial planners feels like walking into a lion’s den.

Pick up the phone!

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Are you hiding behind your email?

phoneJohn Luddy explains why HECM professionals need to get out from behind their email and pick up the phone.

About John Luddy: John has trained reverse mortgage professionals how to be successful when sitting face-to-face at the kitchen table with prospective HECM borrowers. Norcom is looking for qualified loan officer candidates. To learn more call 1-860-507-2582 or email John Luddy here

Fill out my online form.

Decluttering Our Later Lives



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In a humorous Ziggy cartoon, a man and his dog dig for buried treasure, the man dreaming of gold, and the dog, of course, dreaming of “dog gold”: a chest full of bones. Each uncovers the other’s yearning and, disappointed, re-buries the “treasure”.

downsizingOne man’s (or dog’s) junk is another’s treasure, indeed. And downsizing into a smaller home, perhaps with a HECM for Purchase, is an ideal opportunity for an individual or couple to share the wealth, by relieving themselves of possessions that weigh them down. If a senior has clothes, furniture, appliances, sports equipment, or any number of items they haven’t used in years and know they’re unlikely to use again, it might be a great idea to hold a garage sale, or donate the items to charity, and lighten their load.

One experienced loan officer who has watched many reverse mortgage clients right-size and eliminate clutter says, “When you skinny down, you relieve stress — and find it much easier to maintain your house. The IRS may also give you a tax write-off on donations.”

Simplifying at the time of relocation is a great way for seniors to skip procrastinating about all the clutter, and make the move easier and more enjoyable. But for some, simplifying may not be that simple.

Keeping It Clear Is An Ongoing Commitment

A new magazine from the publishers of Better Homes and Gardens, The Magnolia Journal, offers inspiration for life and home. It features HGTV “Fixer Upper” stars Chip and Joanna Gaines from Waco, Texas, who remodel older homes with a “wow” factor that’s entertaining as well as practical. And they know a few things about decluttering.

In the inaugural issue of the magazine, Joanna writes about “The Complexity of Living A Simple Life,” noting with humor that while she likes a clean, orderly house, sometimes she can’t open the drawers in her living room hutch because they “are so jam-packed with ‘necessities’ that I can’t get to any of them. If this isn’t irony, I’m not sure what is.” She admits the same is true of her jewelry drawer and closet.

Paring down takes commitment, and it’s not a one-time event: clutter is insidious, and can creep back into a senior’s new home as easily as failing to discard daily junk mail or buying extras when you shop because Costco makes it easy to stock up on essential household goods.

Just as someone who enjoys gardening will regularly prune the yard to keep the flowers looking their best, pruning our lives is an ongoing process — one that may be challenging for an older person if they’ve accumulated a lifetime of “stuff” that feels overwhelming to sort through. Professional organizers can help a senior declutter for a fee, and unpaid assistants may be just as effective (they’re known as children and grandkids).

If you know an elder who’d like to downsize, declutter and simplify, suggest it as a positive pre-relocation step. There’ll be less to pack, move, and unpack — and more breathing room in their new lives without extra baggage that they no longer need.

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What are your thoughts on seniors decluttering? Please leave your input in the Comments section below, and share this post on social media using the Twitter, Facebook and LinkedIn icons at the top of this page. Thank you!

Retirees Conflicted on Home Equity

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Despite challenges many reluctant to tap equity in retirement

 

reverse mortgage newsOlder American homeowners find themselves beset by a variety of retirement landmines- exploding medical costs, uncertain markets and income security. Despite these challenges, retirees remain conflicted about tapping their home equity.

Mortgage and financial professionals are well aware that the baby boomer generation is less adverse to mortgage debt than the generation that preceded it. A recent New York Times article cites the seismic shift of how older American’s managed mortgage debt. The Federal Reserve reports that home-secured debt held by those aged 65-74 was only 18.5 percent in 1992, 32 percent in 2004 and 42 percent in 2004 as reported by the 2013. The percentage of those holding mortgage-related debt into retirement is expected to continue to rise as an estimated of 10,000 baby boomers turn 65- each day.

Despite the widespread acceptance of leveraging debt among boomers, retirees financial needs and uncertainty about tapping into home equity remain. The conflict between the need to fund aging in place and tapping into home equity through a mortgage is addressed in Jamie Hopkins recent column in Forbes.

“American retirees are facing a laundry list of retirement challenges. The only certainty is that