European governments face debt problems that seem to threaten the survival of the euro. The future is uncertain, as it always is when major economic events are concerned. On this side of the lake, however, our main concern with this debt crisis is what the potential impacts could be on our own retirements and on the retirement income of those who have already retired. Some tactics in the fight again a collapse in the Euro One of the government responses to the crisis has been a series of austerity budgets. Government spending is being cut back so that deficits can be reduced and even balanced at some time in the future. The impact of these budget cuts will have serious impacts on the citizens of the countries involved. Some countries are even considering cutting back on retirement benefits...

The Reverse Mortgage for Home Purchase on-line calculator is now available on the Legacy Reverse Mortgage web-site (http://www.legacyreversemortgage.com/reverse-mortgage-for-purchase).   One simply puts in the State and city where the home is going to be purchased, age of the potential borrower and amount available as a down payment.   By hitting the “Calculate your Estimate” button, the approximate maximum value of the home one wishes to buy is shown.  For instance, if a 74 year old senior is looking to purchase a home in CA and has $125,000 available for a down payment, the senior could be looking for a home valued up to $368,800. The other choice is where the senior has found a home or range of home values that she or he would like to purchase.  In that case, one would put in ...

Social Security is a means-tested program in Taiwan, so senior citizens with significant financial assistance don’t qualify for the program. Means-testing involves looking at your assets and excluding you from a program if your assets exceed a preset level. Just as in the U.S., some seniors can have assets but still not have enough money to live on. Their home could be their biggest asset but doesn’t usually offer a source of income. This is sometimes called “being house-rich and cash-poor.” In Taiwan, seniors with a house worth as little at $183,000 could be ineligible for a pension, but they certainly aren’t rich. Maybe we could call their situation “middle class and without an income.” To address this problem, the government has decided to test reverse mortgages. This tria...

Unemployment in Greece is officially 20.9 percent, and that is low by the standards of Spain where unemployment is nearly 25 percent…but that’s another story. With unemployment so high, it is obvious that many depend on the government for survival. In addition to those needing help because there are no jobs, there are a number of senior citizens who live on pensions. In Greece, all pensions are backed by the government. These payments – benefits under the social safety net and pensions – are now being looked at for cuts so the government can continue getting funds from the international community. As a nation, we can learn that excessive levels of debt eventually lead to dependency in some ways. Greece is a sovereign nation but in order to access the money it needs to conti...

Long-term care can become a sudden problem. While many senior citizens will require long-term care, it is impossible to predict when the need will occur. You could fall and suffer an injury or you could unexpectedly face another health crisis. The need could also come suddenly if you lost a caregiver who had been helping you avoid long-term care. Often, the long-term care decision comes down to a crisis and must be made at the worst possible time. In addition to personal and emotional factors that drive the decision, there are very real financial concerns to address. Long-term care is expensive and few will have the resources ready to pay for extended care. For many seniors, their home will be their most valuable asset. However it is an illiquid asset and to get the cash they need, some wi...

Home prices are directly related to economic growth, and the state of California has suffered a large drop in many other economic indicators, including employment, as home prices fell. But determining which came first is almost a “chicken or the egg” type of question. Given the close relationship between real estate and the economy, there is some good news on both fronts according to recent reports. Economic growth is in the forecast Wells Fargo offers detailed economic research in addition to banking services. They recently noted that employment in California has finally turned higher. Data from July shows that the number of jobs available rose by 1.2% from last year. Even better news came with the fact that the high paying information services sector is leading that job growth. Econo...

Based on favorable experience, one of the industry leaders in home equity lending for senior citizens, HomEquity Bank, is expanding their reverse mortgage program in Canada. After emerging from the global financial crisis largely unscathed, Canadian banks are recognized as among the safest in the world. This decision to expand reverse mortgages demonstrates the viability, safety, and legitimacy in the popular reverse mortgage market and serves as a vote of confidence for the future of the industry. Canadian reverse mortgages vs. US reverse mortgages In Canada, the eligibility age for accessing the equity in a house through a reverse mortgage has been significantly expanded. Homeowners who are as young as 55 years old are now able to take advantage of the programs. Prior to this change, th...

Economic growth doesn’t erase all the problems a nation needs to meet. India has been able to provide better paying jobs for its young, skilled professionals, but senior citizens still face financial concerns in their retirement. This is a society where younger family members traditionally care for their elders, but that’s changing as India becomes more modern. The government estimates that only 10% of the population has access to a credible pension plan. Recognizing this, the government has made it a priority to find ways to provide income security for the country’s retirees. A modernized approach: the reverse mortgage Among the first steps the government took was to introduce reverse mortgage loans in 2007. The goal of the program is the same as it is in the U.S. – to a...