You are in retirement or moving towards retirement and you receive an inheritance. What do you do with the money or the property?

The answer depends on several factors. What is your current financial situation? What do you expect your financial situation to be in the short term and in the long term? Too many people have little or no idea because they have not done proper planning during the income producing years. You definitely should not expect an inheritance to pay for the rest of your life.

Things happen. People live longer. Your planning should revolve around your resources, not
someone else’s.

After evaluating your Money Life, it is time to figure out what to do with the inheritance. Write down your goals (with your spouse, of course). Put together a plan. Then, take action; follow your plan.

If you wish to work with a financial person, choose someone who is a fiduciary, someone who by law must put the client first, someone who does not make money by selling financial products.

If you don’t need the inheritance, think of your Legacy. Your legacy is what you pass on to your descendants as well as your personal contribution to all mankind in the future.  Pay it forward; leave the world a better place than you found it.

Money Coach Bill Stanley is a Registered Investment Adviser, a fiduciary who does not sell
financial products. He educates and he coaches. Bill’s passion is financial literacy for all. His
book, “Money Sense for Young Professionals” is a perfect gift for that child or grandchild who is interested in a better money life. Bill has started a private nonprofit, the William Stanley Foundation, as part of his legacy.

Busy, busy, busy. It seems, as the years flow into the future, we’ve become busier, more to do, extra to witness, goals to achieve. It is a truth that our existence relies on the necessity that we stay active. But are we experiencing the correct type of activities? Namely, Gym-Time! 

Hark! I hear a communal justification for not exercising, “I don’t have the time”. Let’s be honest, we can all find the time to exercise. I don’t believe it’s due to not having the time, I believe it is due to when and the time it takes to exercise. 

People are busy, we all have our lives to lead. But we, as a society, have grown to expect immediate results; we have become impatient and have grown indolent. As a result, our overall health is declining. So how do you find time to exercise? I’m taking you back to school. 

First you should identify the time of day that it is best for you to exercise. Everyone is different so you must discover what is best for you. To ascertain, ask yourself these questions: 

When am I at my best during the day? 

When do I have the most energy? 

At what point in the day is my mood at its best? 

My answer to these questions is The Morning. I rise early and start my day around 4:30am. I allow myself time to wake up, drink coffee, and take care of natural needs. Then I head to the stationary bike and crank out 25 miles. Later that morning I will consume nourishment, tend to business, and then head to the gym for resistance training. Then shortly after 11am I will complete my day’s training with cardio, usually one of my High Intensity Interval Training (HIIT) sessions I designed. I schedule my day so all my exercising will be complete before noon. The paramount reason for this is due to the fact that I am not at my best past early afternoon. 

Now, that is MY exercising time frame. This is just an example. Many would not want to devote 3+ hours to exercise. I do, because it’s my passion and my job. Obviously, yours needn’t be so strenuous and time consuming. Remember, it has been recommended that older adults engage in moderate physical activities at least 2 times per week and strength training 2 times a week. Your Personal Trainer Will recommends an equivalent mix of moderate- and vigorous-intensity aerobic activity 3 times a week and strength training 2 or more days a week. 

The next step is to break up your workouts. I recommend doing cardio/aerobics as early as possible. Doing cardio/aerobics late in the evening may disrupt your sleep. Also, starting your day with cardio/aerobics will give you energy throughout the day. 

Next, weight/strength training. If you must do cardio and strength training on the same day, I recommend performing strength training 2 hours after cardio, even better would be the afternoon. This will allow your body time to recover so you can get the most out of the strength training. The most achievable plan would be to alternate cardio and weight training on different days. The weekly program would look something like this: Monday, Wednesday, Friday cardio in the morning, Tuesday and Thursday (Saturday if you feel strong) weight/strength training in the morning. You can substitute the time of day to best suit your needs. 

Lastly, establish a routine. In the beginning a new routine will seem tough. Just stick with it. Be consistent. Soon you will develop a routine and exercising will become second nature. New healthy habits take approximately 14-21 days to become routine; often this can be achieved in fewer than 14 days. Tough out the first week and by the second you’ll be on your way to a new healthy you. I know you can do it! 

If you would like assistance in getting a routine started, please contact us at contactus@khronologyfit.com . We can set you up with an exercise routine and specialized diet plan that will change your life! 

Khronology - Functional Fitness and Nutrition

Do you find yourself holding on to things just in case you need them? We don’t let go because we might need something in some far-off, nonexistent and probably hypothetical future. We keep too much stuff in the very remote chance that we might need something for trips, vacations or everyday use!

We don't need to hold on to these possessions for that "just in case" moment!  We rarely use our just-in-case items—they sit there, take up space, get in the way, and weigh us down. Most of the time they aren’t items we need at all.

The truth of the matter is that when we remove the "just-in-case" items from our lives, we get them out of the way and free up the space they consume. And, that is a very liberating feeling!

We are sharing a technique that is the "brain child" of Joshua & Ryan, "The Minimalists"! They "practice what they preach" and have found a sense of freedom by not having lots of "just-in-case possessions. The technique is called: that 20/20 Rule.

They got rid of or didn't pack anything "just in case". If you can replace an item for less than $20 in less than 20 minutes don't worry about it. This results in less "things" in your possession on a daily basis and less to pack when traveling.

Josh & Ryan found this hypothesis has become a theory that has held true almost all of the time. They rarely have had to replace a just-in-case item, and they have never had to pay more than $20 or have gone more than 20 minutes out of their way to replace the item. This theory usually works 99% of the time for 99% of all items and 99% of all people—including you.

They haven’t missed the hundreds of just-in-case items they've gotten rid of, and they didn’t need to replace most of them.

Getting rid of these items will clear your mind, free up your space, and will take the weight off your shoulders.

What do you consider a "just in case" item? What are you holding on to "just in case"?

You will find more valuable information in their book:  Essential

Many of us are between 65 and death, i.e. old. My friend sent me this excellent list for aging . . . and I have to agree it's good advice to follow.

1. It’s time to use the money you saved up. Use it and enjoy it. Don’t just keep it for those who may have no notion of the sacrifices you made to get it. Remember there is nothing more dangerous than a son or daughter-in-law with big ideas for your hard-earned capital. Warning: This is also a bad time for investments, even if it seems wonderful or fool-proof. They only bring problems and worries. This is a time for you to enjoy some peace and quiet.

2. Stop worrying about the financial situation of your children and grandchildren, and don’t feel bad spending your money on yourself. You’ve taken care of them for many years, and you’ve taught them what you could. You gave them an education, food, shelter and support. The responsibility is now theirs to earn their own money.

3. Keep a healthy life, without great physical effort. Do moderate exercise (like walking every day), eat well and get your sleep. It’s easy to become sick, and it gets harder to remain healthy. That is why you need to keep yourself in good shape and be aware of your medical and physical needs. Keep in touch with your doctor, do tests even when you’re feeling well. Stay informed.

4. Always buy the best, most beautiful items for your significant other. The key goal is to enjoy your money with your partner. One day one of you will miss the other, and the money will not provide any comfort then, enjoy it together.

5. Don’t stress over the little things. Like paying a little extra on price quotes. You’ve already overcome so much in your life.You have good memories and bad ones, but the important thing is the present. Don’t let the past drag you down and don’t let the future frighten you. Feel good in the now. Small issues will soon be forgotten.

6. Regardless of age, always keep love alive. Love your partner, love life, love your family, love your neighbor and remember: “A man is not old as long as he has intelligence and affection.”

7. Be proud, both inside and out. Don’t stop going to your hair salon or barber, do your nails, go to the dermatologist and the dentist, keep your perfumes and creams well stocked. When you are well-maintained on the outside, it seeps in, making you feel proud and strong.

8. Don’t lose sight of fashion trends for your age, but keep your own sense of style. There’s nothing worse than an older person trying to wear the current fashion among youngsters. You’ve developed your own sense of what looks good on you – keep it and be proud of it. It’s part of who you are.

9. ALWAYS stay up-to-date. Read newspapers, watch the news. Go online and read what people are saying. Make sure you have an active email account and try to use some of those social networks. You’ll be surprised what old friends you’ll meet. Keeping in touch with what is going on and with the people you know is important at any age.

10. Respect the younger generation and their opinions. They may not have the same ideals as you, but they are the future, and will take the world in their direction. Give advice, not criticism, and try to remind them that yesterday’s wisdom still applies today.

11. Never use the phrase: “In my time.” Your time is now. As long as you’re alive, you are part of this time. You may have been younger, but you are still you now, having fun and enjoying life.

12. Some people embrace their golden years, while others become bitter and surly. Life is too short to waste your days on the latter. Spend your time with positive, cheerful people, it’ll rub off on you and your days will seem that much better. Spending your time with bitter people will make you older and harder to be around.

13. Do not surrender to the temptation of living with your children or grandchildren (if you have a financial choice, that is). Sure, being surrounded by family sounds great, but we all need our privacy. They need theirs and you need yours. If you’ve lost your partner (our deepest condolences), then find a person to move in with you and help out. Even then, do so only if you feel you really need the help or do not want to live alone.

14. Don’t abandon your hobbies. If you don’t have any, make new ones. You can travel, hike, cook, read, dance. You can adopt a cat or a dog, grow a garden, play cards, checkers, chess, dominoes, golf. You can paint, volunteer or just collect certain items. Find something you like and spend some real time having fun with it.

15. Even if you don’t feel like it, try to accept invitations. Baptisms, graduations, birthdays, weddings, conferences. Try to go. Get out of the house, meet people you haven’t seen in a while, experience something new (or something old). But don’t get upset when you’re not invited. Some events are limited by resources, and not everyone can be hosted. The important thing is to leave the house from time to time. Go to museums, go walk through a field. Get out there.

16. Be a conversationalist. Talk less and listen more. Some people go on and on about the past, not caring if their listeners are really interested. That’s a great way of reducing their desire to speak with you. Listen first and answer questions, but don’t go off into long stories unless asked to. Speak in courteous tones and try not to complain or criticize too much unless you really need to. Try to accept situations as they are. Everyone is going through the same things, and people have a low tolerance for hearing complaints. Always find some good things to say as well.

17. Pain and discomfort go hand in hand with getting older. Try not to dwell on them but accept them as a part of the cycle of life we’re all going through. Try to minimize them in your mind. They are not who you are, they are something that life added to you. If they become your entire focus, you lose sight of the person you used to be.

18. If you’ve been offended by someone – forgive them. If you’ve offended someone - apologize. Don’t drag around resentment with you. It only serves to make you sad and bitter. It doesn’t matter who was right. Someone once said: “Holding a grudge is like taking poison and expecting the other person to die.” Don’t take that poison. Forgive, forget and move on with your life.

19. If you have a strong belief, savor it. But don’t waste your time trying to convince others. They will make their own choices no matter what you tell them, and it will only bring you frustration. Live your faith and set an example. Live true to your beliefs and let that memory sway them.

20. Laugh. Laugh A LOT. Laugh at everything. Remember, you are one of the lucky ones. You managed to have a life, a long one. Many never get to this age, never get to experience a full life. But you did. So what’s not to laugh about? Find the humor in your situation.

21. Take no notice of what others say about you and even less notice of what they might be thinking. They’ll do it anyway, and you should have pride in yourself and what you’ve achieved. Let them talk and don’t worry. They have no idea about your history, your memories and the life you’ve lived so far. There’s still much to be written, so get busy writing and don’t waste time thinking about what others might think. Now is the time to be at rest, at peace and as happy as you can be!

REMEMBER: “Live Your Life and Forget Your Age!”

Source - SeniorsLifestyleMag.com

An important topic that we're addressing today is "should you pay the first medical bill that you get"?

Author, Marshall Allen, "likens today's health care system to a bully, squeezing and taunting the consumer". He says you don't need to have a major surgical procedure to feel that steep out-of- pocket health care costs which also include your annual health insurance premiums and deductibles as well as an epidemic of billing mistakes are draining your pocketbook! 

According to Allen, the cost of basic health care is Americans' #1 financial concern. Allen recently wrote a book which is a guide on how to fight back against out-of-control medical costs and bills. His book is entitled, "Never Pay the First Bill: And Other Ways to Fight the Health Care System and Win".

Allen cites the perennial increase in health care prices. If you look at 2010 - 2020, workers' earnings went up 27%, family health care premiums went 55% and deductibles went up 111%. So, family premiums went up twice as fast as workers' earnings.

Some people feel as though they are uninsured, even if they are technically insured, because they are responsible for a lot of out-of-pocket costs. This is especially true if someone has a high annual
deductible. If you have a $3,000, $5,000, or $10,000 deductible, you are functionally uninsured...that's a sobering thought! Source...

Allen makes the point that he is not advocating that we should not pay our bills at all, but "that we should never pay the first bill until we have checked it to make sure it's accurately priced and accurately documented." Source...

Did you know that experts who review medical bills for a living say that almost every medical bill has some kind of an error. It's common for there to be charges for things that didn't even happen. And, it's very common to be charged more than you should be charged for something that did happen.

Allen also said, "In America, we say the customer is always right. But in health care, the insurance companies are more concerned with keeping the hospitals, doctors, nursing homes and others in their networks than they are making sure that we're satisfied with the quality of care or the accuracy of the billing. So, even if you have an error in your bill, your insurance company will just pay it!"

People get the feeling that they are on their own. There's seems to be a sense of betrayal that the American public feels. Older Americans who are caring for their older parents have experienced the higher and higher costs year after year!

That's why there is momentum to do something about this situation in the American health care system!

Allen closes this interview by saying, "It's going to be a fight. There's going to be winners and losers, because right not they're taking away more of our money than they should and they're not going to release their grip on our money without us fighting back." Source...

We invite you to read this entire interview at Next Avenue.

​No, PEARLS is not about a necklace we wear. Rather, it is about support for the 60+ population. Let me explain: PEARLS stands for Program Encouraging Active Rewarding Lives for Seniors. PEARLS has existed nationally for about 12 years.  We offer support to people 60+ who are sad, anxious, depressed or are experiencing life issues for which they want support in El Paso County Colorado.

PEARLS was developed at the University of Washington in the late 1990s. The aim was to provide supportive companionship and practical strategies to improve the lives of older adults. The human needs which PEARLS addresses affects more than 6.5 million Americans in that age group, but only about 10% get treatment, according to the National Alliance on Mental Illness. Some of the potential consequences of a lack of support or treatment is increasing isolation and physical decline. Frequently, we run across folks that just feel stagnant: “I’m at that certain age, this is how I am now.’”

Cynthia, our coach, says older generations often view receiving mental health care as embarrassing or shameful, so they often won’t seek help. Often, they are not even aware they’re feeling depressed, remarking, “it’s just the way it’s supposed to be!” 

The PEARLS program is offered at no charge to clients. It identifies 60+ folks who may be just starting to struggle or even at-risk seniors who have gone for long periods with little support. Typically, our coach meets the client in his or her home for six to eight sessions through 5 to 6 months to learn skills for goals they have set so they can make behavior changes to diminish their depression and isolation.

The PEARLS Program of Colorado and those in other states have provided services to hundreds of persons. Clients are often the best spokespeople for the effectiveness of the program. One individual commented, “I’m not so sad all the time and unreasonable about everything,” “I would recommend this program to most people,” and, “it changed my way of thinking.”

Increased self-sufficiency is also one of the program’s aims. “If people take care of their emotional health, they’re more likely to care for themselves physically,” said Roberta “I think a program like this can help individuals be less dependent on the system.”

Research supports clients’ comments on their experiences. PEARLS recipients were likely to have a reduction in depression and anxiety symptoms, improved quality of life, and a trend in decreased hospitalizations.

Care coordination is also a key element. Our staff has decades of experience working with 60+ members of our community.  They are well-acquainted with additional services that might be needed and assist clients in access to them. Building a wider network of supports strengthens individuals’ ability to maintain the gains they made while working with the PEARLS coach.  

To contact a PEARLS coach call or text 719 459-2017  Website: pearlsprogram.net

Jumbo Reverse Mortgage Loan

Homeowners who are looking to use a reverse mortgage to tap into their home equity now have a new option at their disposal. The only private reverse mortgage available for the last few years was Generation Plus, meant for borrowers with home values exceeding 1 million. In addition, Urban Financial of America abolished the dry spell in the private reverse mortgage industry and introduced jumbo reverse mortgages.

Jumbo reverse mortgage loans are targeted at new homeowners with homes valued upwards of $600,000. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.

A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.

Even with millions of dollars in home equity, we all have to balance our budget at the end of the month.

How does a Jumbo reverse mortgage loan work?

Buying a house is a life-changing event in our lives, and it requires a lot of financial planning. Working on your credit score and saving enough for a down payment are crucial first steps towards homeownership. On top of this, it involves choosing the lowest mortgage rates and negotiating favorable terms. Unfortunately, depending on your chosen area, your home may be worth more than $679,650, and you won’t qualify for a traditional government-insured reverse mortgage. Instead, you’ll need to opt for a jumbo loan.

Jumbo reverse mortgages, frequently called proprietary reverse mortgages, differ from conventional reverse mortgages. The loan amounts exceed the conforming limits set by the Federal Housing Finance Agency, and therefore cannot be purchased, guaranteed or backed by Fannie Mae or Freddie Mac.

Private firms and larger banks are generally responsible for jumbo reverse mortgages. However, mortgagers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.

Homeowners must be over 62 years old and continue to live in their own home as their primary residence. In addition, they must have the financial resources to continue to maintain the property.
When the reverse mortgage loan idea was first conceived, people quickly began to recognize that the common was a brilliant solution to common challenges. Using the equity in your home, a reverse mortgage is a financing option that eliminates monthly mortgage payments and taps into your equity. Consequently, the loan doesn’t need to be repaid as long as the borrower continues living in his home. However, this doesn’t mean that a reverse mortgage is free. Borrowers are still responsible for paying property taxes, insurance, and home maintenance. Meanwhile, the loan accumulates monthly interest, and you’ll repay it at the end of the loan’s lifespan.

Jumbo reverse mortgage loan to value

So, what percentage of your home appraisal can you actually access? Several factors determine how much equity you can access with this loan. For most traditional mortgages, the maximum loan-to-value ratio without a PMI is typically 80 percent. However, depending on the lender’s requirements, it varies slightly. For reverse mortgages, the LTV isn’t used as a critical determining factor in the approval process. Instead, the LTV ratio is influenced by other key factors, including the borrower’s age, current interest rate, and the home’s sales price. The current rate sits at approximately 50 to 55%. 

High loan limitsMany seniors with an existing mortgage of over 1 million dollars qualify for a reverse jumbo loan. In general, homeowners with 50% to 55% or more equity have a good chance of being approved.

When you apply for a jumbo reverse mortgage, you can potentially borrow hundreds of thousands more than the HECM loan limits.

With jumbo reverse mortgages, seniors can borrow up to 6 million worth of home equity. The exact amount depends on the borrower’s eligibility, age, house value, and how much is owed on the property. With a large amount of cash at your disposal, you’ll gain more control over your assets and investments. Capitalize on a program that takes a glance at the total value of your home.

Since Jumbo reverse mortgage lenders aren’t FHA approved nor guaranteed, lenders don’t need to follow FHA guidelines. Instead, they mimic FHA protections and provide their adaptation to their guidelines.

Jumbo reverse mortgage benefits

1) Retain Home Ownership

Undoubtedly, the critical benefit behind a reverse mortgage is to keep one of your most significant assets. Contrary to what some people believe, lenders don’t take away your ownership when you borrow against it. If you adhere to loan terms and continue to pay your taxes and insurance, you will remain the legitimate proprietor.

2) Stay financially stable

One of the many benefits of a jumbo reverse loan is your ability to boost your finances by tapping into your equity. In addition, private companies offer complete flexibility when it comes to payout options, including lump sum, monthly payments, or line of credit.

Seniors can benefit from an increased standard of living and allow them to live their dreams. When your house is worth $1,000,000 or more, you want to access your home’s equity and spend it whatever way you want. It’s an excellent way to use the value of your property to fund part of your retirement.

3) No Insurance Premiums

Private reverse mortgages don’t require insurance. As a result, borrowers aren’t left behind with a pile of upfront or annual insurance premiums they face when borrowing the government-insured program.

4) No Monthly Mortgage Payments

Many borrowers use a jumbo reverse mortgage to eliminate monthly payments while allowing seniors to live in highly valued areas. While traditional mortgages allow refinancing small mortgages, jumbo products allow borrowers to refinance several hundred thousand. So not only will you lessen your burden, but you’ll also bring in an additional source of income.

5) Fixed-rate loans

Borrowers taking out jumbo reverse mortgages don’t need to worry about interest rate hikes. Jumbo reverse mortgages have various fixed interest loans, which means your loan size will increase with predictability. This is uncomplicated to plan your finances!

6) A Reverse mortgage loan is generally a non-recourse loan

One of the best benefits of a reverse mortgage is that it is generally a non-recourse loan. You’re protected if your loan balance is higher than the value of your home. Your lender cannot seek to seize your assets and must absorb the loss.

Lower Cost

It was just a few years ago that people were ranting about how expensive reverse mortgages we’re. Today, it’s no longer the case. Corelogic determined that the difference is due to Fannie Mae and Freddie Mac’s continuously increasing guarantee fees. Since 2010, it nearly tripled, and since jumbo loans are too big to be purchased by this giant corporation, it leaves jumbo loans untouched.

Reverse mortgages backed by the FHA carry some hefty financing charges. The biggest one being a 2% insurance premium.

Meanwhile, the higher jumbo rates have come down from 7.5% to as low as 4.95% and require no additional monthly insurance charges as required by government-backed programs. This equates to savings totaling $16 447,50$ compared to a HECM jumbo program. In addition, jumbo loans benefit from no upfront or recurrent mortgage premiums, and lenders can often waive origination fees and pay upfront costs.

Applicants face strenuous observation and often have stellar credit scores. Therefore, it becomes advantageous for lenders and advantageous enough to offer better terms.

The jumbo programs make much sense when you consider all the improvements, lower rates and fees, higher loan amounts, and underwritings.

Are Jumbo reverse loans still available?

The recent changes made by the HUD make it easier for Jumbo reverse mortgages to re-enter the market, offering a product exceeding the lending limit of $822,375.

Jumbo rates recently dropped, and many borrowers find that the range of jumbo products is more appealing than ever for higher valued homes. Potential homebuyers and refinancers see an opportunity to secure a lower rate, even if the pool of lenders is scarce with the pandemic. Borrowers may face stricter requirements and more documents during the process to ensure their repayment capability. The excellent news is jumbo reverse mortgages are still available.

Sources

Michael Branson (November 16, 2019). Lowest Cost Reverse Mortgage Surprisingly Affordable!
https://reverse.mortgage/lowest-cost
Mortgage News -7thlvl. 5 Major Benefits of Reverse Mortgage Loans
https://mortgagenewschannel.com/5-major-benefits-reverse-mortgage-loans/
Kathleen Coxwell – New Retirement (August 25, 2014). New Jumbo Reverse Mortgage; HomeSafe Reverse Mortgage Brings Additional Benefits
https://www.newretirement.com/retirement/new-jumbo-reverse-mortgage-homesafe-reverse-mortgage-brings-additional-benefits/
Michael Branson (March 12, 2021). 2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.
https://reverse.mortgage/jumbo
Brett Stumm What is a Jumbo Reverse Mortgage and Its Pros & Cons?
https://brettstumm.com/jumbo-reverse-mortgage/
LendingTree.com (June 5th, 2018). Understanding Jumbo Reverse Mortgages
https://www.lendingtree.com/home/reverse-mortgage/understanding-jumbo-reverse-mortgages/
Alpha Mortgage Reverse Mortgages Maximum Loan-to-Value
https://reversemortgagevalue.com/loan-to-value/
Jackie Lohrey | Sapling.com How to Use My Home As Collateral for a Loan
https://www.sapling.com/5489036/use-home-collateral-loan


Get to Know Kevin A. Guttman Reverse Mortgage Specialist
A Jumbo Reverse mortgage doesn’t have to be complicated when you have a professional help you along the way. Contact our team today to get the wheels in motion a (877) 251-9709
image source: Pixabay