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Tag: financial planning

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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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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