In the prior post, we described reverse mortgages as an emerging, multi-purpose planning tool for managing cash flow in the second half of your life. In this post, let’s take a look at some nitty gritty details on the costs and mechanics and history of reverse mortgages.
Wealthinking by Paula Hogan
A fundamental strategy in financial planning is to create options and safety nets for an unknown future. Tools for doing so are highly valuable. Thanks to some recent and welcome regulatory changes and the continuing low interest rate environment, reverse mortgages are now another tool in that tool kit. They are worth a fresh look.
Key Take-Aways from the 17th Annual Meeting of the Retirement Research Consortium
Earlier this month I was pleased to attend the 17th Annual Meeting of the Retirement Research Consortium at the National Press Club in Washington DC. This annual conference brings together academics from three leading research centers to present and discuss current research in the area of retirement policy and design. The consortium is funded by the Social Security Administration, which then uses the resulting research when making policy decisions. As in prior years, I came home with new insights, useful information, and heightened appreciation for the connection between academic research, sound public policy, and individual financial planning.
Our prior post detailed how Steven Covey’s first three habits in his widely acclaimed book The 7 Habits of Highly Effective People apply to your personal finances:
- Be Proactive: You can’t control what happens to you, but you can control how you respond.
- Begin With The End In Mind: Envision your mission. Articulate character (who do you want to “be”) and contribution (what do you want to do/achieve?) in each part of your life.
- Put First Things First: Move towards personal goals intentionally. Fill your calendar with what is important, not just urgent.
Financial planning is all about navigating personal change in a manner consistent with core personal values. In financial planning, wherever you start, you end up at this core idea, over and over again. My summer reading this year is focused on this idea. Let’s have some fun with it.
In fencing a duel, when the bout director commands "En Garde!" the opponents ready themselves to attack, defend, or otherwise survive.
Sometimes when you look at the big picture, you just have to laugh. See if you can guess the answer to these seven ridiculous riddles:
When your 2014 tax return is complete, is your next step to heave a sigh of relief and drop it into the file for posterity? Or do you take a few minutes to actually look at the return? What would you find if you did take a look? There must be more than just getting the tax forms completed and signed each year, all the while feeling that the whole process is beyond your control, abusively complicated, and stunningly expensive.
The Society of Actuaries Committee on Post Retirement Needs and Risks has just published another paper about retirement policy in America. This interdisciplinary volunteer committee has created a stream of substantive data and insights about retirement planning that helps policy-makers, regulators, and consumers. Retirement planning in our country is challenging and not at the moment optimally addressed. I’m proud to be a volunteer on this committee and grateful for all that I have learned from fellow committee members.
You might be surprised to see the agenda for the 2015 AICPA Advanced Planning Conference in Las Vegas, which I attended last week with Clint Wondra CFP® CPA, another advisor from our office. This year, the content of the conference included a focus on the softer and more nuanced parts of retirement planning in addition to the more technical offerings traditionally offered by the AICPA, the world’s largest membership organization representing accountants.