Laurie MacNaughton © 2019 Here’s what I’m not going to address, except in passing: the wage gap between the sexes. Why? It’s not because I doubt its existence. Rather, it’s because for most retirees the peak earning years are past, and they are now drawing down savings and investments. What I am going to address, however, is the wealth gap between men and women during the retirement years. Meet Rosemary, a woman who has spent her entire adult life caring for loved ones – first her profoundly handicapped brother, and then her Alzheimer’s-afflicted mother. When her mother died last year, Rosemary started looking for a job. At age 66. With no official work history. We’ll come back to Rosemary in a minute. Retirement income…
Middleburg Reverse Lady
Posts tagged “Reverse Mortgage”
New year, exciting new options in retirement financing
middleburgreverselady
Posted on January 4, 2019
Laurie MacNaughton © 2019 His name is Richard, and his question to me was the following: “If my paid-off home is worth $900,000, why do I only qualify for some $220,000 in a lump sum with a reverse mortgage?” Not only is this a great question, but it’s also a very common one. The answer, however, involves a few basics facts about how a reverse mortgage works. First, the amount of equity homeowners qualify for is based upon age. More specifically, the loan amount is based upon the age of the youngest homeowner. Second, just like with any other home loan, a reverse mortgage is impacted by interest rates. And third, the amount one qualifies for differs according to the “flavor” of the reverse…
Wait…what? Line of credit growth and reverse mortgage
middleburgreverselady
Posted on November 20, 2018
Laurie MacNaughton | © 2018 There is was again, that same question: “Should we do a reverse mortgage now, or should we wait until our investments are gone?” Turns out there is research on this – lots, in fact, some sponsored by retirement groups and some by academic institutions. Regardless of the source, conclusions are consistent: homeowners who do a reverse mortgage early in retirement, while they still have healthy savings, benefit more than do those who wait until their finances are under stress. This is largely due to two factors. First is asset preservation during market downturns. Needless to say, the past few months have been a bumpy ride in the investment realm, and paper losses turn into real losses when you have…
Don’t tell – our national aversion to discussing personal finance
middleburgreverselady
Posted on August 29, 2018
Laurie MacNaughton © 2018 As I write this I’m visiting long-time friends in Germany. Over dinner the past few evenings our conversation has turned to retirement, as within the next decade both they and I will be approaching retirement age in our respective countries. During our discussions a couple data points have piqued my interest, including the fact that though average Germans save more than average Americans do, a 2018 survey indicates they do not have appreciably more in retirement savings. According to the survey this is largely due to the fact median incomes in Germany are somewhat lower, and the cost of living higher, than in the States. When I asked my friends about their retirement funding they pointed to their daughter and said, half-jokingly,…
Laurie MacNaughton [NMLS ID #506562] The topic under discussion was the cost of aging in America. “How many here want to leave their kids an inheritance?” Nearly every hand went up. “How many here are likely to have an inheritance to leave?” Not as many hands went up. In fact, not many hands went up, period. The speaker, a Virginia Circuit Court judge, wasn’t asking these two questions of just any group; this was an assembly of some 200 attorneys, presumably a demographic with greater-than-average net worth. As a reverse mortgage specialist, I would make this observation: not leaving kids an inheritance is one thing; having adult children bankroll parents as they age is another thing altogether. Zero inheritance looks great compared to adult…
Laurie MacNaughton © 2018 Charles, sweet-tempered and kindly, sat in my office fidgeting with a ballpoint pen. “My mom has never really been herself since her fall, and I found out she was having money problems only after I came across a delinquency notice for her property taxes. By the time I opened her bills, she was late on everything – mortgage, taxes, utilities, you name it. I need to negotiate with creditors on her behalf but she never drew up a power of attorney, so now I’m not sure what my options are.” In my role as a reverse mortgage lender I’ve met with hundreds of aging homeowners and their families. I’ve seen homeowners who have planed extensively for their retirement years, and…
Laurie Denker MacNaughton © 2018 Put a bunch of experience in a room and you’re going to get a good result, right? Not even close. This morning I read an interesting study: when surgeons are with a familiar team, outcomes are good. When the same surgeons are with an unfamiliar team, outcomes are…not so good. The same holds true in sports – some teams with great players cannot get it together, while others achieve magical results with less stellar athletes. And another sector studied? Financial services. Yup – financial services. Turns out, team dynamics are hugely important. No amount of experience can replace the “magic” of an established, well-functioning team. A few days ago I had a closing with a client whose reverse mortgage…
