Financial Issues Related to Growing Older

Roxie Rodgers Dinstel

Tanana District HHFD Faculty

Topics

Choosing a financial advisor Reverse mortgages Living wills and other end of life issues Making the money last

Choosing a Financial Advisor

Verify Experience Evaluate credentials Compatible investment pattern No conflict of interest

Reverse Mortgages

The reverse mortgage allows you to convert a part of the equity in your home to cash.

Proceeds can be paid as a lump sum or as monthly payments.

No payback until you no longer use the home as a principal residence.

Requirements

62 years or older Own your house or have a low mortgage

balance that can be paid off by loan proceeds Live in the house

Reverse mortgage or home equity loan?Traditional second mortgage or home equity

loan, must have income and be able to pay the loan back

Reverse mortgage pays regardless of income and you don’t pay back until you no longer live in home

Do I want a reverse mortgage?Yeas Able to get needed

money Can stay in your house

Nays High upfront costs May have an adjustable

rate Overall costs are high Monthly service charge

Living Will

Includes medical treatments you want when you are incapicitated (what)

Can include a durable power of attorney for health care issues (who)

Five wishes

Wish 1-The person I want to make decisions for me when I can’t

Wish 2-The kind of medical treatment I want or don’t want

Wish 3-How comfortable do I want to be Wish 4-How I want people to

treat me Wish 5-What I want my loved

ones to know

Making the Money Last?

People are living longer Plan, Plan, Plan Health is an unpredictable factor Social Security Choices Consider working

And if the money is going to last and you are concerned about passing it on, make a gift.

What do you do?