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Author: Cliff Cadle

Reverse Mortgages

What are reverse mortgages? Older individuals who own their homes often find themselves “house rich and cash poor.” Developed to address this dilemma, a reverse mortgage provides funds–all at once or over time–to an older homeowner by drawing against the equity built up in the residence. Unlike “forward” mortgages, reverse mortgages are not repaid on a monthly basis. The total loan (including the accumulated interest) is repaid when the last surviving borrower sells the home, permanently vacates the property, or dies.  In most cases, the funds the homeowner receives may be used for any purpose: to supplement a fixed income, to pay for at-home medical care, or to see the world. For an individual facing a retirement income shortage or an increased dependency on medical care, reducing home equity with a reverse mortgage may be preferable to selling the home to raise much-needed cash. A reverse mortgage can have drawbacks,...

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Introduction to Estate Planning

  What is estate planning? Simply stated, estate planning is a method for determining how to distribute your property during your life and at your death. It is the process of developing and implementing a master plan that facilitates the distribution of your property after your death and according to your goals and objectives.   At your death, you leave behind the people that you love and all your worldly goods. Without advance planning, you have no say about who gets what, and more of your property may go to others, like the federal government, instead of your loved ones. If you care about (1) how and to whom your property is distributed, and (2) ensuring that your property is preserved for your loved ones, you need to know more about estate planning.   As a process, estate planning requires a little effort on your part. First, you’ll want to...

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Healthcare in Retirement

What health care benefits are available in retirement? Health care in retirement is available from many sources. Government programs (such as Medicaid and Medicare) offer numerous health care benefits. However, you may need to purchase supplemental health insurance or Medigap, as well. Most Americans are eligible to begin receiving Medicare benefits at age 65, but qualifying for Medicaid may require some planning on your part. In addition to these resources, you may also be entitled to military health care benefits if you are a veteran, retired servicemember, or the spouse or widow of a veteran or retired servicemember. Continuing care retirement communities and nursing homes also offer health care services for older individuals. Depending on your specific needs and circumstances, you may use any number of these resources during your retirement years. Medicare In general Medicare is a federal health insurance program created in 1965. Medicare primarily assists those who...

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Understanding Social Security

Over 59 million people today receive some form of Social Security benefits, including approximately 38 million individuals age 65 or older. (Source: Fast Facts & Figures About Social Security, 2011) But Social Security is more than just a retirement program. Its scope has expanded to include other benefits as well, such as disability, family, and survivor’s benefits.  How does Social Security work? The Social Security system is based on a simple premise: Throughout your career, you pay a portion of your earnings into a trust fund by paying Social Security or self-employment taxes. Your employer, if any, contributes an equal amount. In return, you receive certain benefits that can provide income to you when you need it most–at retirement or when you become disabled, for instance. Your family members can receive benefits based on your earnings record, too. The amount of benefits that you and your family members receive depends...

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Financial Planning–Helping You See the Big Picture

  Common Financial Goals Saving and investing for retirement Saving and investing for college Establishing an emergency fund Providing for your family in the event of your death Minimizing income or estate taxes Do you picture yourself owning a new home, starting a business, or retiring comfortably? These are a few of the financial goals that may be important to you, and each comes with a price tag attached. That’s where financial planning comes in. Financial planning is a process that can help you reach your goals by evaluating your whole financial picture, then outlining strategies that are tailored to your individual needs and available resources. Why is financial planning important? A comprehensive financial plan serves as a framework for organizing the pieces of your financial picture. With a financial plan in place, you’ll be better able to focus on your goals and understand what it will take to reach...

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How Women Are Different from Men, Financially Speaking

Women today have never been in a better position to achieve financial security for themselves and their families. What financial course will you chart? It is important for women to educate themselves about finances, make financial decisions, seek professional help when needed, and implement plans to ensure that they and their families will have financially secure lives. Sources 1 The National Vital Statistics Report, Volume 60, Number 4, January 2012 2 U.S. Department of Labor, Bureau of Labor Statistics, Women in the Labor Force: A Databook, December 2011 3 U.S. Census Bureau, Current Population Survey, 2011 4 U.S. Department of Labor, “Women and Retirement Savings,” October 2008 5 U.S. Department of Labor, “Women and Retirement Savings,” October 2008; U.S. Government Accountability Office, “Retirement Security,” October 2007 We all know men and women are different in some fundamental ways. But is this true when it comes to financial planning? In a...

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Social Security’s Survivors Benefits

Social Security Survivor’s BenefitsWhen you think of Social Security, you probably think of retirement. However, Social Security can also provide much-needed income to your family members when you die, making their financial lives easier. Your family may be entitled to receive survivor’s benefits based on your work recordWhen you die, certain members of your family may be eligible to receive survivor’s benefits (based on your earnings record) if you worked, paid Social Security taxes, and earned enough work credits. The number of credits you need depends on your age when you die. The younger you are when you die, the fewer credits you’ll need for survivor’s benefits. However, no one needs more than 40 credits (10 years of work) to be “fully insured” for benefits. And under a special rule, if you’re only “currently insured” at the time of your death (i.e., you have 6 credits in the 13 quarters...

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Why Women Need Life Insurance

While there are many reasons why women need life insurance, often women have little or no life insurance protection. One of the reasons for their lack of coverage may be the fact that most life insurance advertisements are aimed at men. A major benefit of cash value insurance is that the policyowner can borrow from the insurance company against the accumulated cash value, often at a relatively low interest rate. Those funds can be used to supplement retirement income, pay for college tuition, assist a child with a mortgage, or for many other purposes. However, if you take a loan against your cash value, the death benefit and cash value will be reduced by the outstanding loan balance. A reduction of your cash value could cause your policy to lapse. Why Women Need Life Insurance Today, women have more financial responsibilities than ever before. How will your family or loved...

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