What is a jumbo reverse mortgage?
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.
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.
Michael Branson (November 16, 2019). Lowest Cost Reverse Mortgage Surprisingly Affordable!
Mortgage News -7thlvl. 5 Major Benefits of Reverse Mortgage Loans
Kathleen Coxwell – New Retirement (August 25, 2014). New Jumbo Reverse Mortgage; HomeSafe Reverse Mortgage Brings Additional Benefits
Michael Branson (March 12, 2021). 2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.
Brett Stumm What is a Jumbo Reverse Mortgage and Its Pros & Cons?
LendingTree.com (June 5th, 2018). Understanding Jumbo Reverse Mortgages
Alpha Mortgage Reverse Mortgages Maximum Loan-to-Value
Jackie Lohrey | Sapling.com How to Use My Home As Collateral for a Loan
Want to save more money? Here's a guide to streaming services:
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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
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We rack up our pennies to save for retirement most of our adulthood. However, come retirement, most of us have less than $100,000 saved up. With debts constantly increasing and income staggering, many citizens are unprepared for retirement.
Thankfully, for homeowners who are at least 62 years old, a reverse mortgage is a great way to boost your income. As long as you occupy your home and build sufficient equity, you can fall back on a reverse mortgage to keep you on your feet.
While it may appear as an outstanding solution to meet financial obligations, the real question is how much hard cash does a reverse mortgage remunerate? There’s no straight answer, and the amount of money at your disposal will vary according to various factors.
Where does the money come from in a Reverse mortgage?
The exact amount of money you’ll be granted depends on a few different components, including age, the current market value of your home, interest rates, financial obligations, and the distribution type of choice.
Your current home appraisal will also help you determine what your eligibility will look like—the higher the economic value, the higher potential to put a fair amount in your pocket. Intertwined, current interest rates can also affect how much money you’ll receive. The lower the interest, the higher the accessible funds.
In general, homeowners who have over 50% equity in their residence have a higher chance of qualifying for this type of loan. Meanwhile, when there’s a notable mortgage balance remaining, the payout may not be worth it. Loan proceeds will invariably go towards paying off existing liens.
A reverse mortgage supplies borrowers with the most disposable cash when the home is paid off or the balance is low. As of 2019, the maximum payout from a reverse mortgage is 679,650$. However, most applicants can expect much less.
Who can apply for a Reverse Mortgage?
You must be at a minimum of 62 years old to qualify for a reverse mortgage. However, the older you are when you take out this loan, the more cash you’ll access. The estimated length of your loan is a critical factor in whether you’ll receive the best payout.
Additionally, fees and other financial obligations may alter your payment. You must pay off your existing mortgage balance before assessing how much money you’ll receive. Once you’re approved, you will choose how you would like to receive the loan amount. You may select an upfront lump sum, monthly payment, or a line of credit. It all depends on what serves your situation best.
It may not seem like there’s such a difference on the surface, but it can alter the outcome dramatically. Due to the continuously changing economy and rising house costs, evaluate your options carefully.
Only you can tell whether a reverse mortgage is a suitable solution for you. No program will be the right one for every homeowner. With the proper research, tapping into your home equity could be worth it.
Get to Know Kevin A. Guttman Reverse Mortgage Specialist
As you can see there are a lot of steps to getting a reverse mortgage but it 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 at (877) 251-9709
The IRS announced on March 17th, that they will extend the filing and payment deadline for individual federal tax returns from April 15th to May 17th. Here are a few important points to be aware of at this time:
Even with the new deadline, the IRS urges taxpayers to consider filing as soon as possible, especially those who are owed refunds. We are continually monitoring this situation and we will keep you updated as the conditions develop. If you have any questions, please contact us.
The Colorado tax deadline is also extended to May 17, 2021. Source...
Check with your individual state to determine if they have also extended the deadline.
For more tax info and help, contact: Your Taxlady
In this day and age, a Baby Boomer may very well be a solo senior for various reasons!
According to Sara Zeff Geber, about 20% of Baby Boomers today do not have children. There are also thousands of Baby Boomers whose kids are estranged, not functional or live far away. They will also age solo!
On any given weekend in a retirement community you will find lots of visitors milling around the property and visiting the residents. Most of these visitors are family; namely, adult children and grandchildren of the residents. These families are making sure their oldest members get out of their homes and remind them they are not alone in the world.
What happens when the older generation in our society who do not have family to take them to lunch and visit with them? Who can they count on for companionship? And, who will give them aide when they reach a point in life where they cannot do everything for themselves?
It is crucial that solo seniors carefully prepare to ensure a safe and secure future for themselves.
Here are helpful resources for a Solo Senior to age successfully:
Join a Facebook Group for Solo Seniors ~ Elder Orphans Facebook group
Start a Club ~ Start your own club
Find a Life Care Associate ~ Aging Life Care Association
Lessons learned from a cat
Hello. My name is Shannon Ming and I have been a licensed insurance agent since 2013. I started out selling Health Insurance, then expanded to Property and Casualty, hated it, and returned to health insurance. I really missed helping people with such an important product that can have such a profound impact in their lives. Through these changes in my career, I learned what I do, and don’t like. I also learned that my husband has the patience of JOB.
If I had not taken the path above, to leave health insurance and then go into something I did not
enjoy, I wouldn’t have realized that my passion has always been educating and protecting people. I just needed to find the right niche.
About a year and a half ago, I became a Licensed Certified Medicare Insurance Agent and began focusing on health insurance benefits for seniors. I started out selling Medicare and ancillary products like hospital indemnity, vision, and dental insurance over the phone in several states. I then launched Senior Benefits Advisors to focus on educating and protecting seniors right here in my own community. But, I promise this is not going to be a boring story about insurance! This is a story about personal growth, friendship, and…..a cat. Really. A cat!
I don’t think it is a mistake that the word assumption starts with the word ASS. Seriously, you don’t know what you don’t know. Fate, and a cat, has taught me important lessons. It has brought me to a specific niche in my business, and to getting to know my neighbor, my new friend. A friend who has changed me, and the course of my life. She doesn’t even know that yet.
About 6 years ago, a family moved in right next door to us. When I would drive by their house, I would wave to the lady who lived there. She did not wave back. In fact, she would look right at me, turn around, and walk into her open garage. I kept waving anyway. For a while. One time I distinctly remember waving and thinking she may have smiled, but then she put her hand to her mouth, turned, and walked away. It was at that point that I decided my neighbor was not a friendly person. I quit waving.
Somewhere around May of 2019, a very friendly tuxedo male kitten, we guessed to be around six months old, started showing up. He came over every single day. By the summer of 2020, he was here from about 6 in the morning until right after we fed him dinner. We have a glider outside that sits right in the sun. Rocky would sun himself there all day. I would go out and spend time with him every single day, because I work from home. It became a welcomed routine.
At first, we didn’t know who he belonged to. My husband learned that he belonged to the neighbor, the unfriendly one, about 3 months after he started coming over. My husband named him Rocky, which I thought was funny because he was not neutered, and I have a warped sense of humor! Before we knew who he belonged to, we had bought him his own bowl and his own food. We even bought a little bed for him, and when the weather was bad, he would come in until the weather cleared.
Rocky would show up early in the morning, then take off right after we fed him “kitty crack.” (the canned cat food he really liked.) He had the dry food and water during the day.
I remember the last day we saw “Rocky.” It was a Sunday. September 27th, 2020, to be exact. He was over earlier lying in the sun. We would feed our dogs, our son’s cat who we are watching for 2 weeks (it’s been 13 months now) and Rocky, at 5:00 pm every day. As usual, he ate, and took off for home before it got dark.
Rocky was quite the character. He was very chatty. The distance between our homes is quite spread out. We have a half-acre property, so the sidewalk between our two homes, is a bit of a walk. We could hear Rocky walking from his house to ours and up the long driveway to our front porch. He walked with such a purpose, talking all the way!
After September 27th, we were not seeing Rocky anymore. Monday came. No Rocky Tuesday came, no Rocky. My routine was all messed up. No mid-day breaks to sit in the sun and pet Rocky. No animated talking face in the screen door at 4:45pm. My husband’s routine was all messed up too. Rocky loved the outdoors. So does my husband. The two of them would spend hours in the backyard gardening. Where he went, Rocky went. Watching them from the kitchen window was heartwarming. We lost our Himalayan “Bella”, after 12 1/2 years of companionship, in March of 2019. Rocky helped ease the pain of losing her, and he showed up just a couple months after her passing. Bella and my husband spent a lot of time in the yard together.
The following Sunday, after no Rocky, I headed down the driveway to the neighbor’s house. The lady was outside. I had never chatted with her face to face before. I asked if she had seen her cat because he used to hang out at our house during the day, but we hadn’t seen him in a week. She said she hadn’t seen him since the Sunday before either. She also said she had seen a very large owl on Monday evening on our street. My husband had seen a fox while driving to work that week as well. It wasn’t looking good.
My neighbor, let’s call her Dawn, because each Dawn is a new beginning, asked me if I could help her put up flyers to see if anyone had found him. Our hope was that someone found him and ASSumed he didn’t have a home and took him in. We laughed about that, because Rocky was an outdoor cat. He would drive anyone who tried to keep him indoors absolutely bonkers. But we still hoped that was the case.
Luckily, I had pictures of “Rocky.” Really good pictures. Dawn came over, we picked a couple pictures, and made several flyers to put up around the neighborhood. I also posted in Next Door, the Humane Society, and several other places. Sadly, we never found him. but all three of us, Dawn, myself, and my husband, have “seen” him. He came to say goodbye in our dreams. I still think I hear him sometimes.
The first time Dawn came over, she saw my Senior Benefits Advisors showing that I help people with Medicare and more, on my table. She asked me if I could help her with hers. I set an appointment with her to meet the next day and learn about her situation. I would never have approached her to review Medicare with her as she is obviously not 65 years of age.
Dawn came over the next day and we sat at the kitchen table, getting to know each other. It turns out she is not unfriendly. At all. She is on a very fixed income and can not afford glasses. She never saw me wave at her. I learned that she has a habit of putting her hand to her face when she smiles because, due to a chronic health condition, she has no teeth. She told me she is embarrassed about not having teeth and has created this habit to hide this fact. I also learned that she is on Medicare because of chronic health conditions she was born with. In fact, there are many people under the age of 65 on Medicare. Many of these people also have Medicaid as they are unable to work due to their health conditions. They live on very fixed incomes and often have excessive medical bills, or, like Dawn, they go without.
Because Dawn has both Medicare and Medicaid, she is what we call in the insurance world, Dual Eligible. There are special plans developed by insurance companies to help this population. These plans are called Dual Eligible Special Needs Plans. (D-SNP for short)
Dual Eligible Special Needs Plans have extra benefits built into them. Life changing extra benefits. When I say extra, I mean more that original Medicare and Medicaid offers. Before I became a certified Medicare Broker, I would have thought that people would automatically know there are extra benefits, and more options available to them. Maybe someone who helps them get on Medicare would ask if they have Medicaid and tell them they may qualify for extra benefits. They do not. That’s not their job, it’s mine.
There are four different levels of Medicaid eligibility, based on income levels. Each D-SNP plan accepts different eligibility categories. There are also two categories of dual eligible beneficiaries; partial-benefit, and full-benefit, and four levels of Medicaid based on your income levels. Your Certified Medicare Insurance Agent can help you find out what level you are, and if you qualify for a D-SNP in your area.
A great reference to learn more about Dual Special Needs Plans is from the National Contracting Center and can be found here: https://nccagent.com/resources/guides/dsnp-guide/. It’s a guide for agents, but I find it is very informative for consumers as well.
Dawn’s level is a Full-Benefit Dual Eligible Beneficiary. (FBDE) Meaning she is eligible for the Dual Special Needs Plan at no cost to her. The extra benefits of each plan vary, but may include some, all, benefits not listed here, or a combination of the following benefits:
While getting to know Dawn, I learned that her doctor wanted her to swim to help with pain she endures due to her health condition. We have also shared meals together and I learned that there are several healthy foods she simply can’t eat. I learned that she often can’t even get to her doctor’s appointments because she doesn’t have gas money to get there.
After confirming that she did in fact qualify for the Dual special Needs Plan at Full Benefits, she learned that she will be able to get transportation to appointments if needed. She will get a gym membership where she can swim to alleviate pain as her doctor recommends, and most important to her right now, she will be able to get dentures.
When my husband came home from work, he found me sitting with our neighbor, both of us crying. In part because we talked about Rocky coming to tell us he is fine, and partly because we know that she will soon be getting the health care she needs but could not afford. And teeth.
I was able to enroll Dawn in the D-SNP plan with a start date of January 1. She already has an appointment with a dentist in January. I see a change in her already. She is excited. She has hope. Her life will change when she gets dentures. She will have more confidence, and better health due to being able to eat healthy foods she could not eat before. Also, swimming is going to help her alleviate pain, and live a happier, healthier life. I know she will use this gym benefit. She is so grateful that we had this “chance” encounter. Because of a cat. Our “Rocky.”
Since helping Dawn, I keep finding myself in situations where people need my help. I was at a physical therapy appointment a couple weeks ago, and when I left, I found that my transmission was shot. I was able to get help from the staff getting “Lucy” into a parking spot. A gal I was chatting with while working out, turned out to be good friends with a good friend of mine. She offered to give me a ride home. I mentioned when leaving her truck that if she knew anyone who needed help with Medicare, I would be happy to help them as Open Enrollment is ending soon. She said, “Me.” I need help! Seriously, she is no where near Medicare age. It turns out that she has a chronic health condition. Her health condition is very rare, and she has been dealt many challenges. One of the side effects of her condition is hearing loss. She qualified for the D-SNP at the Full Benefit Level and will now be getting hearing aids. She is beyond excited. What a blessing.
Before learning about this population, people on both Medicare and Medicaid (Dual Eligible), and the existence of Special Plans that can help them get life changing extra benefits they may not be aware of, I had been searching for meaning in my life. Asking the question “What is my purpose?”
It seems that God, the universe, fate, or whatever you call that force that leads us to circumstances and “chance” meetings, is working in my life. I am committed to finding people who qualify for, and need the products and services offered by the Dual Special Needs Plan.
If you or someone you know has both Medicare and Medicaid, and you would like to find out if you qualify for a D-SNP, you can reach out to me in any of the following ways:
Shannon Ming- Senior Benefits Advisors
Business Phone- 719-315-5588
Book An Appointment Through Facebook- https://www.facebook.com/shannonmckeonming (Click on Book Now.)
In closing, I want to thank “Dawn” for teaching me that you don’t know someone until you take the time to get to know them, for becoming my friend, and for sharing “Rocky” with us.
Market fluctuations are enough to give anyone the jitters. But that doesn’t mean market volatility should be a reason to panic. Here are 5 tips to help you from
1. Keep your long-term plan in mind
Review your investment strategy to ensure it’s aligned with your long-term goals, and then stay the course.
2. Consider consulting with a professional before reacting
The value of your investment will fluctuate over time. When the market falls, any losses in your portfolio are only realized if you sell your holdings.
3. Consider buying when the market is down
Think of it as a sale with prices discounted from the recent market peak. Yes, prices always could fall further, but if you’re invested for the long haul, you may want to consider if this is a good time to add to your investment portfolio.
4. Seek out guidance
If you’re not sleeping at night, or your risk tolerance has changed, it’s a good time to talk with your financial professional.
5. Diversify Your Stocks and Bonds
Stocks and bonds seldom move in step with each other, so losses in one asset class may be offset by gains (or less-severe losses) in the other.
For additional information, download this free e-book “Market Volatility: 4 Ways to Protect Your Money.”
2060 Briargate Parkway Suite 120
Colorado Springs, CO 80925
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5 Retirement Planning Mistakes
1. Be careful in putting all your investments (nest egg) in one basket
A planned well-diversified portfolio facilitates positive performance of some investments and can balance out poor performance of others investments. The mix of investments in different asset classes (e.g., stocks, bonds, real estate) help keep your retirement goals on track even when one investment goes through and downsizing period. Diversification is vitally important as you get near retirement. You have fewer years of income to rebuild savings if some investments post losses.
Contact a Certified Financial Planner (CFP) to recommend diversification strategies based on your goals and risk tolerance. Regular meetings with Certified Financial Planner are encouraged to keep your goals on track for a well planned retirement.
2. Get your estate plan in order to keep your heirs aware
Make things much easier for your loved ones in the future by talking through estate planning today. Your CFP advisor and attorney can work with you on estate planning. You will obviously want to have your exact wishes of your estate carried out.
Estate planning points:
3. Don't wait too long to think about your current and long-term health care needs
Protecting your assets means planning carefully for health care needs (expected and the unexpected). Your first step is to make sure you have enough medical coverage, plus a long-term care strategy.
The process begins by finding out which Medicare benefits you’ll be eligible for down the road and researching options for supplemental insurance (assuming you are over 65). For example, hybrid life insurance policies combine life insurance with long-term care benefits that may help you pay for the costs of a nursing home, assisted living or in-home care — expenses Medicare does not cover. In general, these hybrid policies may be more affordable than traditional long-term care policies. Check them out throughly with your CFP or a licensed insurance agent.
4. Don't keep your 401(k) accounts in multiple places
If you have changed jobs several times during your career, you might have multiple 401(k)s at different employers. It makes sense to consolidate these accounts. Be careful, before you do, discuss a few critical factors with your CFP:
5. Be aware of paying too much in taxes
It make sense to pay taxes now to lessen your future tax liability. Could charitable gifts lower your taxable income? Are there tax deductions you’re not using to your advantage? Your CFP and tax accountant can work together to create a tax strategy for you.
Schedule a retirement check-in with your CFP!
Can’t Finish Your Taxes on Time?
April 15 is here!
If you can’t finish your taxes on time, relax. You have options.
If you don’t have your documents in order or haven’t made real progress on your tax return, filing for an extension by April 15 sounds like a good idea.
However, getting more time isn’t as simple as it sounds.
Here are seven things you should know if you can’t finish your taxes on time:
1. You still have to act by April 15. The paperwork is still due on April 15!
2. If you owe money, you have to pay. You’ll need to fill out enough of your tax return to come up with a rough estimate of what you owe. And, send the amount owed to the IRS on time! People filing for a tax extension are still required to pay 90% of what they believe they’ll owe by the April Tax Day deadline.
3. Failing to file is worse than failing to pay. You don’t want a failure-to-file penalty. It is usually 5% of the unpaid taxes for each month or part of a month your return is late, up to 25% of your bill.
4. Your bank may be kinder than Uncle Sam. You may want to pay your taxes with a credit card if you don’t have the cash on hand. The interest and fees may be less.
5. You may not need an extension. File your completed return and pay what you can. Request a short extension of 60 to 120 days to pay. The IRS provides installment payments.
6. If you are owed a refund, you won’t be penalized for not filing. However, you won’t get your refund until you file your return. So, get your money ASAP!
7. If you’re a chronic procrastinator, the IRS won’t issue your refund. If you don’t do your taxes for three years, even if you’re owed a refund, the IRS will keep your money. Again, Yikes!!
Can’t Finish Your Taxes on Time? – There are Solutions!
Source: Tax Filing Extension
More Financial Info: Social Security Benefits
Did you know that more than half of current workers have not planned for retirement!
So, we ask the question: Baby Boomers – Are You Retirement Ready?
According to recent surveys, 48% of pre-retirees do not have a financial plan! If you are one of those 48%, you need to get going.
Here is a time line of when and what you should be looking at to get on target for a comfortable retirement.
10 Years Out:
You should take a good guess at what your retirement life is going to be like.
5 Years Out:
You should probably start to get your behavior changes in order to fit your upcoming lifestyle and budget.
1 Year Out:
It’s getting close!
According to Ameriprise Financial for Pre-retirees:
For more excellent information on retirement: Research Studies
Again we ask, Baby Boomers – Are You Retirement Ready?
It comes quicker than you think!
While it’s definitely a good thing to save money and be frugal about your spending habits, there are some things you should spend good money on. Yes, we mean SPLURGE on! These items are important to spend money on because they will last a long time and add to the quality of your life.
A Good Mattress — You need a good mattress because you need a good night’s sleep! Sure you could save a few bucks with the cheaper mattress, but is a stiff neck and a bad back worth it? If you can’t invest in a good mattress, try a memory foam mattress topper. This Sleep Innovations Memory Foam topper is amazing and can make your bed comfortable. If you are ready to buy a new mattress, try a Casper Mattress. It is made completely of memory foam and is designed to support your body in all the right places.
A Set of Quality Kitchen Knives — If you buy a quality set of knives, they’ll last a long time. You probably spend a lot of time in the kitchen. Good knives can make preparing dinner so much easier. Check out this list of Good Housekeepings Kitchen Knife Reviews to find your next set.
A reliable car — If you are considering a new car, do your homework and get a good one. A good place to start is Consumer Reports Car Buying Guide. Whether you are buying new or used, they have the best info on which cars last the longest and how owners like their cars over time. Always check into warranties. I bough a secondhand car that included a bumper to bumper warranty for two years.
A Basic Toolkit — This doesn’t have to cost a lot of money, but it is definitely a necessary thing to have. You never know when you’ll need a screwdriver or hammer. If you purchase a toolkit in a case you will always know where everything is located. Check out this toolkit for less than $40 and has most everything you’ll need for your home.
A Good Pair of Shoes — Gloria Hunniford wrote, “Always buy a good pair of shoes and a good bed as if you aren’t in one you are in the other.” This is true! If we aren’t sleeping, we are usually on our feet, right? We need good support. Your best bet is to get a foot or gait analysis done at a serious running store such as the Colorado Running Company. You can also go online to check out walking or running shoe reviews.
Don’t be Afraid to Spend Good Money on your Basic Needs!