Kate starts out today, by answering a question from Lisa in Albuquerque, who asks: “Do I need an Estate Plan?” Kate explains that it's a no brainer to refer a client with $10,000,000 in assets to a good Estate Planner, however the majority of people just don't have that much in assets. You need not despair though, as Kate points out some simple steps that you can take:
- Have you changed the beneficiary designations on your accounts? That really is important and it's something that many people omit to do, as their life situations change.
- Another thing to think about is a Basic Estate Plan, for families with young children.
- If you are a Boomer grandparent and there are minor children that you'd like to assist, a Basic Will and Power of Attorney documents, in case of an accident, or a severe health issue will really be a great idea.
- People without children, who cannot decide who to name as their beneficiaries. You can name a Non-Profit as your beneficiary. Even some people with grown children do that at times.
- How do you want to be remembered? Think about the legacy that you want to leave- that's really the bottom line here.
If you want to discuss the emotional issues involved with any of this, Kate urges you to reach out to her, because this issue of Estate Planning raises so many emotions and money is not a logical topic, even though we tend to think that it is.
So, if you want any help with this Estate Planning process, call Better Money Decisions on 844 507 0961 (Extension 702 for Kate) or you can email Kate at: email@example.com.
Today we're going to be talking about whether or not a Reverse Mortgage is a good idea. This is a topic that there's a whole lot of misinformation about, so Kate has a fantastic guest on the show, to give you the truth of it. Wade Pfau actually wrote a book about the topic, so listen in as he clarifies this for you today.
Wade, who's a Ph.D and a CFA, has been interviewed by Kate before, for US News and World Report. Wade is a Professor of Retirement Income in the PhD Program for Financial and Retirement Planning, at the American College of Financial Services, in Bryn Mawr, Pennsylvania, where they offer a lot of great courses, in the Financial Services arena. Wade also serves as a Principal and Director of Retirement Research for McLean Asset Management and he hosts the Retirement Researcher website, as an educational resource for individuals and Financial Advisers. He also holds a Doctorate in Economics from Princeton and he frequently publishes in a number of Academic and Practitioner Research Journals. Listen in to get the truth about Reverse Mortgaging.
- Wade discusses some of the more common misconceptions around the topic of Reverse Mortgages.
- There used to be high costs involved in setting up Reverse Mortgages, but if you shop around a bit, you can find lower cost versions, now.
- Wade talks about the risk of foreclosure, due to people not being able to keep up with the property taxes and the other costs of keeping the home.
- Using a Reverse Mortgage, as it's been written about in the Journal Of Financial Planning, as part of a strategic and responsible Retirement Income Plan.
- Wade gives a short tutorial on how a Reverse Mortgage works.
- A nice planning trick- If you open a Reverse Mortgage and don't borrow much from it right away, your line of credit grows instead of the loan balance. This can create a lot of options for you, for later on, in your retirement.
- Wade discusses who the best (or the worst) candidates are, for a Reverse Mortgage.
- Wade talks about the idea of getting people to think about incorporating this strategy with overall Retirement Planning.
- Four general ways to manage a Sequence Of Returns Risk: 1) Spend conservatively. 2) Be very flexible with spending. 3) Eliminate volatility from the portfolio. 4) Have a buffer asset.
- How a Reverse Mortgage would fit for someone who's looking at self-financing a Long Term Care Plan.
- You have to be living in the home, to maintain a Reverse Mortgage.
- Some of the 'big picture' things that you should be aware of, when considering a Reverse Mortgage.
Wade's website: www.retirementresearcher.com
Wade's book, Reverse Mortgages- How To Use Reverse Mortgages To Secure Your Retirement, is available from Amazon.