Many states are grappling with how to fund pensions they have agreed to provide for public workers. California has been in the spotlight as reforms have been discussed and enacted. Most agree that the system needs some changes and California has been leading in the way with small changes to the pensions that can yield big savings to the state budget. Florida has taken a different approach and proposed a large change that puts pensions at a greater degree of risk. How Florida is putting retiree’s pensions at risk Almost all pensions and Social Security benefits have been indexed to inflation for some time. This allows retirees to maintain some sense of financial security. Although the largest expenses retirees face usually rise faster than the general level of inflation, indexed payme...

Some states cost more to live in than others. California is almost legendary for high taxes, but California is also legendary for providing a great quality of life for its residents. Nearby access to major cities, beaches, mountains or other attractions are valuable. In California, this value has long been recognized with above average property prices and above average taxes. According to the Tax Foundation, the top tax rate on personal income taxes in California is more than 10 percent, while the state sales tax is 7.25 percent. Local sales taxes and property taxes add to those costs. In total, the Foundation estimates that California’s 2009 state and local tax burden averaged about 11.8 percent of income. Nationwide, the average spends about 9.8 percent of their income on state and...

In a recent editorial, the San Diego Union-Tribune commented on the state’s budget process, which it described as dysfunctional. The Union-Tribune editorialbegan, “It’s become a pattern in California. An exhausted Legislature finally completes work on a tardy state budget. Soon afterward, it becomes obvious the budget is a farce stitched together with funny numbers and delusional assumptions.” These words could just as easily describe the pattern for retirement planning that all too many individuals rely upon. People near the end of their careers are exhausted from years of work and the demands of raising a family. Retirement is often neglected while families are young because their limited resources are directed towards more immediate needs and the rewards of children. Realizing t...

The FHA Reverse Mortgage for Home Purchase Seminar has been approved by the California Department of Real Estate effective February 13th.  This 3 Clock course (Certificate Number 5004-1001) is being offered to all Real Estate Professionals under the “Consumer Service” category.  This continuing education offering is being presented by Ken Keranen, a Reverse Mortgage consultant who has 18 years of experience in the field representing Legacy Reverse Mortgage. With more than 10,000 Americans turning 62 every day and the prices of homes bottoming out, learning about this option could not be timelier.  The course covers how real estate agents can make more sales  by introducing seniors to this method of financing. The course includes: The basics of Traditional Reverse Mortgages Reverse...

Reverse mortgages offer seniors a chance to stay in their homes while using their built-in equity to meet living expenses or other financial needs. They are a powerful financial tool that benefits a large number of seniors, but not unlike any other financial product, there are some unscrupulous salesmen willing to place their commissions ahead of their client’s interests. California recently took action to help protect seniors from at least some of the abusive practices. Tactics involving life insurance Some insurance agents were urging senior citizens to take out a reverse mortgage in order to buy an annuity. The simple intent was to generate commissions. Annuities offer steady and safe income to retirees, which is the same purpose a reverse mortgage serves in the first place. Although ...