Can Creative Retirement Planning Save Older Americans…?
It’s the question everyone keeps asking themselves without really find a clear answer for it. In truth, it’s been known that retiring in the current financial climate would be a hassle but after working 30+ years, older Americans expect a return for their investment and it’s not coming.
According to an article published by Reverse Mortgage Daily asking: ‘is now the worst time to retire?’, Bankrate reports that the amount needed to maintain an investment portfolio is rising while returns on those same investment portfolios remain the same.
Bankrate reports that a $1 million dollar portfolio with 60% stocks and 40% bonds might run out in 25 years or even sooner, given inflation and interest rates.
It’s a scary thought to consider, running out of money before the end of your life, especially if you began to invest and plan retirement early to have everything ready by the time the funds were needed. The 2007-2009 recession was a curve ball no one expected and the consequences continue to be dire for retiring Americans.
An annuity, according to Bankrate’s analysis, required a $9 dollar investment for every $1 dollar it paid back twenty years ago. In 2010, that same $1 return required a $15 dollar investment and had only half of the buying power because of inflation.
Reverse Mortgage Programs, however, present a possible solution to the current financial instability retiring Americans are facing.
PS Financial Services, a reverse mortgage company offers the flexibility older Americans are looking for their retirement planning. We are better than the bank because we work with various lenders in order to find the right financial fit for your situation, not the other we around. We offer personalized service, ensuring our clients directly deal with their Mortgage Loan Originator from initial consult to closing and funding of their loan.
When investment portfolio no longer offer the security they used to, reverse mortgages continue to help older Americans during retirement by providing a steady, non-taxable cash flow and enough income to pay off their mortgage, ensuring a debt-free retirement.