Aging with Humor: A Few Funny Thoughts & Stories

“Do just once what others say you can’t do, and you will never pay attention to their limitations again.”- James R. Cook

SOME SHORT THOUGHTS & HUMOROUS STORIES ON AGING

Aging gracefully and growing older should be fun. Here are some short thoughts and a few funny stories about aging.

TWO OLD GUYS AT A DINNER 

An elderly couple has dinner at another couple’s house, and after eating, the wives leave the table and go into the kitchen.

The two gentlemen were talking, and one says, ‘Last night we went out to a new restaurant and it was really great. I would recommend it very highly.’

The other man asks, ‘What is the name of the restaurant?’ The first man thinks and thinks and finally asks, ‘What is the name of that flower you give to someone you love? You know…The one that’s red and has thorns.’

‘Do you mean a rose?’

‘Yes, that’s the one,’ replied the man. He then turns towards the kitchen and yells, ‘Rose, what’s the name of that restaurant we went to last night?


I’ve sure gotten old! I’ve had two bypass surgeries, a hip replacement, new knees, fought prostate cancer and diabetes.

I’m half blind, can’t hear anything quieter than a jet engine, take 40 different medications that make me dizzy, winded, and subject to blackouts. Have bouts with dementia.

Have poor circulation; hardly feel my hands and feet anymore.

Can’t remember if I’m 85 or 92. Have lost all my friends.

But, thank God, I still have my driver’s license.


ELDERLY MAN THINKS FAST 

An elderly farmer in Florida had a large pond down by his fruit orchard. One evening he decided to go down to the pond and took a five gallon bucket to pick some fruit.

As he neared the pond, he heard female voices shouting and laughing with glee. As he came closer he saw a bunch of young women skinny-dipping in the pond.

He made the women aware of his presence and they all went to the deep end. One of the women shouted to him, ‘We’re not coming out until you leave!’

The old man thought for a second and said, ‘I didn’t come down here to watch you ladies swim or to make you get out of the pond naked.’

Holding the bucket up he said, ‘I’m here to feed the alligator!’


I feel like my body has gotten totally out of shape, so I got my doctor’s permission to join a fitness club and start exercising. I decided to take an aerobics class for seniors. I bent, twisted, gyrated, jumped up and down, and perspired for an hour. But, by the time I got my leotards on, the class was over.


MEMORIES 

A couple in their nineties are both having problems remembering things. During a checkup, the doctor tells them that they’re physically okay, but they might want to start writing things down to help them remember.

Later that night, while watching TV, the old man gets up from his chair. ‘Want anything while I’m in the kitchen?’ he asks.

‘Will you get me a bowl of ice cream?’

‘Sure.’

‘Don’t you think you should write it down so you can remember it?’ she asks.

‘No, I can remember it.’

‘Well, I’d like some strawberries on top, too. Maybe you should write it down, so’s not to forget it?’

He says, ‘I can remember that. You want a bowl of ice cream with strawberries.’

‘I’d also like whipped cream. I’m certain you’ll forget that, write it down.’ she says.

Irritated, he says, ‘I don’t need to write it down, I can remember it! Ice cream with strawberries and whipped cream – I got, for goodness sake!’

Then he toddles into the kitchen. After about 20 minutes, the old man returns from the kitchen and hands his wife a plate of bacon and eggs. She stares at the plate for a moment.

‘Where’s my toast?’

Maximize Your Retirement with HomeSafe

“Folks are usually about as happy as they make their minds up to be.”- Abraham Lincoln 

FINANCIAL TOOLS TO FIT YOUR UNIQUE RETIREMENT

When you think about retirement, what is your vision?

I’ve found that retirement can mean something very different to each of my clients. For some their goal is to have the freedom to travel and explore the world. For others it’s right-sizing to the ideal home closer to family and with no mortgage payments. And most would like to live out their golden years with financial security and peace of mind.

The HomeSafe® suite of reverse mortgage products offers a variety of options to help you bring your retirement vision to life.

Click on the link below to download an overview on HomeSafe and learn more about the range of strategic financial solutions available.  

far-Homesafe-Brochure

Interested in the HomeSafe suite and talking about which solution will help you meet your retirement goals? Contact me to have a conversion or to set up a complimentary personal assessment.

 

HECM vs. HELOC: What’s the Difference

“Love is that condition in which the happiness of another person is essential to your own.”- Robert A. Heinlein

A COMPARISON: HECM VS. HELOC 

One of the questions I get asked frequently is what are the differences between a HECM (Home Equity Conversion Mortgage) and a HELOC (Home Equity Line of Credit).

With both a HECM and a HELOC you maintain ownership of your home but with the HECM there are a number of other significant benefits.

Below is a great piece talking about the differences between these two financial solutions.

Click here to read: far-2000-hecm-vs-heloc 

Please reach out if you’d like to learn more about how a HECM can help you meet your retirement goals. 

HUD Secretary Committed to HECM Changes

“Keep your face always toward the sunshine – and shadows will fall behind you.”- Walt Whitman

REVERSE MORTGAGE NEWS

HUD Secretary Confirms HECM Reforms 

In a recent Senate hearing titled, “Housing Finance Reform: Next Steps,” HUD Secretary Ben Carson confirmed HUD’s mission to enact key HECM reform in his prepared remarks.

Shannon Hicks, industry expert and President of Reverse Focus, Inc., covers the hearing in his “The Industry Leader Update” featured on HECM World and talks about the changes outlined by Secretary Carson.

Click the image below to watch the video or visit: https://bit.ly/2nBf64A. 

Interested in learning more about the proposed changes to the HECM program and what impact these will have?   

Contact me to have a conversation or to set up a complimentary personal assessment and see if a reverse mortgage is the right solution for you.

Join me in Bend Oregon for a Free Lunch & Learn Sept. 18th

SECURING YOUR FUTURE WITH A REVERSE MORTGAGE
FREE LUNCH & LEARN
Wednesday, September 18th 2019
11:00am – 1:00pm
Bend, Oregon

How Would Eliminating Mortgage Payments Change Your Life?

Join me September 18th for a Free Lunch & Learn where I’ll answer questions about reverse mortgages and talk about all of the benefits of this effective retirement solution, including:

»  Unlocking the equity in your home
»  Paying off an existing mortgage
»  Creating a tax free income for life
»  Paying off credit card debt


E V E N T  H I G H L I G H T

Buying a Home with a Reverse Mortgage


V E N U E 

Awbrey Glen Golf Club
2500 NW Awbrey Glen Dr. Bend, Oregon

RSVP REQUIRED & LIMITED SEATS 

CALL OR EMAIL ME TO BOOK
CA: 707-812-2102
OR: 541-797-0171
Email: cynthia126@icloud.com

Traditional & Reverse Mortgages: The Risks

Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected.”- Steve Jobs 

NO MORTGAGE IS RISK-FREE

I’m sure you’ve seen at least a few national media headlines on how risky a reverse mortgage can be for older homeowners.

In a recent post on HECM World – one of my go-to resources for reverse mortgage news – industry expert Shannon Hicks touched on some of the most common risks that can be found in traditional and reverse mortgages and how most can be avoided.

1. Spending the Kids Inheritance
Many formal complaints filed on federally-insured reverse mortgages come from the adult children or heirs of a borrower. Many are not happy to find out their mom or dad took out a loan and are even less pleased to discover that a part or all of the home’s equity has been consumed.

In many of these cases the parents were not in a position to cover their daily living expenses and opted for an HECM to help reduce some of their financial burdens and maintain a sense of financial independence.

While heirs may have concerns about their inheritance, their parents often face real and more pressing and immediate financial concerns in their retirement years.

2. Foreclosure with Eviction
Few reverse mortgages result in the displacement of the homeowner, yet several HECM borrowers had ‘foreclosure’ proceedings initiated due to the non-payment of property taxes or homeowner’s insurance premiums.

The truth is that any borrower with a traditional 30 or 15-year home mortgage who does not pay such property charges will find themselves facing a foreclosure action from their lender – a fact that tends not be mentioned in the media.

HUD’s Financial Assessment for HECM borrowers has drastically reduced defaults for nonpayment of property charges now measuring the homeowner’s financial capacity and willingness to meet these ongoing obligations. The vast majority of what HUD calls HECM foreclosures are in fact the natural end of the loan when no equity remains or the loan balance exceeds the sale price of the home.

3. Loss of Equity
While an HECM does consume the equity of the home as payments are rarely made to reduce the loan balance but think about traditional mortgages. Traditional mortgage borrowers with substantial equity in their property who find themselves delinquent in their payments are the most likely to be foreclosed on. The lenders know they stand to recoup their security position quickly in the property.

Which is worse? Making mortgage payments for many years only to lose your home in foreclosure or having an HECM slowly consume the equity while you have no monthly payments?

4. Only One Spouse on the Loan 

Unlike a traditional mortgage, the federally-insured reverse mortgage now provides protections to named eligible non-borrowing spouses after the oldest borrower has passed away. This allows the younger spouse to remain in the home without the loan being called due and payable during a deferral period.

No protections like this are available for traditional mortgage borrowers who may have left off their spouse from the title for legal or personal reasons. In such circumstances the surviving spouse would need to refinance, sell the home, or payoff the traditional mortgage or face foreclosure.

Once again, the HECM stands out and has more protections in place to help mitigate the risk.

THE BOTTOM LINE

There is a lot of misinformation out there coming from “experts” and members of the media who seem to focus on the HECM thanks to its non-traditional design and the protected class it serves.

Yes, there are risks with reverse mortgages but there are with traditional mortgages as well and with an HECM, most can be avoided.

More Safeguards For Reverse Mortgages = Even More Peace Of Mind

No one is useless in this world who lightens the burdens of another.”- Charles Dickens

ADDITIONAL CONSUMER SAFEGUARDS FOR REVERSE MORTGAGES

Home Equity Conversion Mortgages (HECMs) are the most common and most popular type of reverse mortgages. HECMs are backed and insured by the FHA to reduce borrower risk, and serve as a useful financial tool for many individuals looking to supplement their retirement income.

Now even more structured with the borrower in mind, the HECM loan is designed to help borrowers, age 62+, convert some of their home equity into cash – so they can live more comfortably and with greater financial independence.

Built into this strategic financial tool are important, recent safeguards for additional security:

  • Tightened lending limit helps borrowers preserve revenue steam for better long-term money management;
  • The annual mortgage insurance premiums borrowers are required to pay over the course of their loans has dropped from 1.25% to 0.5%;
  • The initial MIP required has increased to 2% for all borrowers. However, this represents a reduction for borrowers who take out larger reverse mortgages and were paying a 2.5 percent upfront premium.

Additional Previous Changes for Borrower Security:

  • Updated non-borrowing spouse protections;
  • Financial assessment helps determine if borrowers are willing and able to meet financial obligations;
  • LESA – Life expectancy set asides use HECM proceeds to pay taxes and insurance.
EXISTING PROTECTIONS YOU CAN ALWAYS RELY ON 

No Monthly Mortgage Payments
A reverse mortgage does not have to be repaid until you sell, move or no longer live in your home.

No Surprise Costs
During the application process, you’ll receive a clear and detailed breakdown of all fees and closing costs, including the total loan costs over the projected life of the loan.

Asset Protection
HECMs are non-recourse loans. After the loan is repaid, any remaining equity belongs to you or your heirs. This means that you can never owe more than the value of your home at the time you or your heirs sell your home to repay your reverse mortgage.

With a HECM, the reverse mortgage debt may be satisfied by selling the home to pay the lesser of the mortgage balance or 95% of the current appraised value of the home.

Independent Counseling
To ensure that you understand all aspects of a reverse mortgage, you’re required to have a counseling session with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD).

Limitation On Fees
Origination fees are regulated by the U.S. Department of Housing and Urban Development (HUD), and cannot exceed HUD limits. In addition, origination fees and closing costs may be financed as part of the reverse mortgage, so out-of-pocket expenses can be minimal.

No Prepayment Penalty
Although a HECM loan is not due until the borrower permanently vacates the home, it can be paid off at any time, with no additional fees.

FHA-Insured
Insured by the Federal Housing Administration (FHA) to protect lenders and borrowers alike. This insurance guarantees you will receive your loan proceeds as agreed upon with the lender at the closing of the loan.

Are Your Retirement Ready?

Please think about your legacy, because you are writing it every day.”- Gary Vaynerchuk

WHAT’S YOUR RETIREMENT READINESS QUOTIENT?   

Retirement is a significant stage in life that can cause a number of different emotions depending on how well prepared you are, not only financially but mentally.

Some of my clients have a very clear picture of their retirement and have been working towards achieving their vision for many years while others are not there yet emotionally, mentally or financially to make the transition.

Gene Cohen, M.D., Ph.D., author of The Mature Mind: The Positive Power of the Aging Brain, has developed a 12-point questionnaire to help you determine your Retirement Readiness Quotient (RQ).

Cohen states, “If you have not given much thought to any of these questions, or if you do not have many good answers for them, you are probably not well prepared for retirement.” 

12 Questions to Ask Yourself About Retirement from Gene Cohen: 

1) Why are you thinking about retirement now? (Give yourself 1 point for a clear answer, 0 points if your reasoning seems fuzzy or you are simply uncertain.) Significance: Your reasons for retirement should be sound and not impulsive or the result of inadequate planning. 

2) Do you really want to retire? (1 point if yes, 0 if no.) Significance: This seemingly simple question is an excellent predictor of success in the transition to retirement. It asks you to consider your deepest desires and motivations, not just what you “think” you ought to do or what other people expect you to do.

3) What do your family and friends say about you retiring? (1 point if they think you’re doing the right thing.) Significance: Feedback from those who know you well can be invaluable when you’re contemplating retirement. Do they think it’s a good decision? Do they think you have thought it out well and prepared sufficiently for it? 

4) Have you considered whether you want a complete or partial retirement? Have you considered part-time or temporary work, or even a less-than-fulltime small business venture (emphasis on “considered”)? (1 point if you’ve considered the options, even if you choose full retirement.) Significance: If you are not entirely sure about retirement or are concerned about finances, then phased, or partial retirement is an important option to consider. 

5) Are your finances sufficient to carry you through your retirement years while continuing to enjoy your current lifestyle? (1 point if yes to both parts of question; 0 if no to either part.) Significance: If you answered no, you clearly have further financial planning to do. 

6) Have you attended a retirement preparation program or seminar focused on financial planning? (1 point if yes, 0 if no.) Significance: Such programs can help you plan spending, predict future income, and anticipate future needs. A bewildering number of options exist, and getting some objective advice is invaluable. 

7) What gives you a sense of meaning and purpose in life? (1 point if when you write it down and read it aloud you feel you’ve adequately identified what gives you a sense of meaning and purpose; 0 points if your reasoning seems fuzzy or you are simply uncertain.) Significance: A lack of clarity about your core values and what aspects of life hold meaning for you is often associated with a less fulfilling retirement.

8) What specific types of activities and experiences are important and fulfilling for you? (1 point if your description of how your plans relate to what is important to you makes sense, or 1 point if someone who is reliable and knows you considers your answer good and clear.) Significance: This is a more specific version of question 7. Your answers here provide a window on how well you really know your mind and how well you have planned how to accomplish what is important to you. 

9) Have you attended a retirement preparation program or seminar focused on social planning (e.g., community activities and interpersonal endeavors)? (1 point if yes, 0 if no.) Significance: Prospective retirees often fail to adequately plan how they will actually spend their time in retirement. Floundering in these areas can lead to frustration and a disappointing retirement life.

10) Have you developed outside interests, hobbies, volunteer activities, or areas of new learning? (1 point if yes, 0 if no.) Significance: Developing new interests can improve the quality of retirement life, and engaging in challenging new endeavors can present new opportunities for personal mastery and empowerment that are associated with positive health outcomes. 

11) Have you planned new activities that would allow you to interact with people on a regular basis and that offer chances to form new friendships? (1 point if yes, 0 if no.) Significance: Making new friends is often more difficult in retirement, and loneliness is associated with a host of mental and physical ills.

12) During retirement, will making only a modest contribution in volunteer activities be sufficient for you? (1 point if yes, 0 if no.) Significance: People who have had satisfying and personally meaningful careers can find the transition to retirement difficult if they do not plan for other ways to make a difference. Such people might consider a phased retirement so they can continue with fulfilling work while starting their retirement.

SCORING
  • 12 points: You’re in position for a great retirement!
  • 10-11 points: Your retirement will likely be highly satisfying.
  • 8-9 points: Your retirement could have problems that are likely fixable.
  • 6-7 points: You could be challenged by ambivalent feelings about retirement, requiring a solid effort to bring your situation up a notch.
  • 3-5 points: You are potentially in the trouble zone where your retirement might not work well unless you make a major effort to get it on track.
GETTING RETIREMENT READY WITH A REVERSE MORTGAGE 

You’re not alone if your RQ is not where you want it to be or is lower than expected. Fortunately there are many experts, resources and tools out there that can help and one effective financial solution is a reverse mortgage.

Reverse mortgages have undergone several major changes for the better over the years, which has led many financial professionals to take note. Now when used as a part of a coordinated retirement planning strategy, a reverse mortgage can improve the overall success rate of your portfolio and help make your vision for retirement a reality.

Improve Your Retirement Income Plan With HomeSafe

“The world is full of magical things, patiently waiting for our senses to grow sharper .”- W.B. Yeats 

RETIRE WELL WITH THE HOMESAFE® JUMBO FINANCIAL TOOL 

HOMESAFE: The Financial Tool Designed for Owners of High-Value Homes  

If you’re 62 or older, now you can access even more of your home’s equity and put it to work wherever you want—giving you more control over your assets, investments and cash flow.

HomeSafe loan proceeds are tax-free with a competitive fixed interest rate that’s lower than you might expect. You can use your proceeds as you choose to fund a more comfortable and secure retirement.

The HomeSafe reverse mortgage offers these great advantages:

  • Loan amounts up to $4 million – significantly higher than a HECM allows
  • No mortgage insurance premium
  • Condominiums appraised at $500,000 or more do not require FHA approval

With HomeSafe you have a lot of flexibility with how you use your proceeds in order to fund your retirement and enjoy your golden years:

  • Pay off existing mortgage debt, have no monthly mortgage payments and improve your cash flow
  • Buy a house or condo in an upscale area or active lifestyle community
  • Pay for home improvements
  • Cover medical or in-home care expenses
  • Refinance an existing reverse mortgage to access a larger pool of funds
MAXIMIZE YOUR HOME EQUITY

If your goal is to supplement retirement income, a HomeSafe reverse mortgage could provide the key to unlock the equity value in your home.

Ideal for homes appraised higher than the HECM loan limit allows, homeowners age 62 and older can potentially access hundreds of thousands of dollars more of their equity than the FHA HECM loan currently offers.

Would you like to learn more about the HomeSafe jumbo reverse mortgage and how it may help you secure long-term financial independence? 

Contact me to have a conversation or to set up a complimentary personal assessment.

Reverse Mortgage Insights from Industry Expert, Ted Butler

“With the new day comes new strength and new thoughts.
– Eleanor Roosevelt

A CONVERSATION WITH TED BUTLER 

HECM World is one of my go-to resources for keeping up to date on trends and news in the reverse mortgage world. I’m a big fan of their ReverseTalk video series and in a recent episode they featured a great conversation with industry expert, Ted Butler.

Like a lot of financial services professionals I’ve run into, Ted was once skeptical of reverse mortgages but is now an advocate for this strategic financial tool.

I couldn’t agree more with his belief that today’s reverse mortgage is one of the most effective financial solutions available to help clients address the challenge of a guaranteed income in retirement.

Similar to Ted, I’ve talked quite a bit in the past about the power of leveraging your home equity with a reverse mortgage. Reverse mortgages can give you safe access to this significant financial asset in order to provide peace of mind in your retirement years.

Click on the image below to watch the video.

Ted has become a strong voice for reverse mortgages and is dedicated to educating homeowners and financial advisors on the Home Equity Conversion Mortgage (HECM) and how it can be a powerful retirement planning tool.