bi LWW A Tool For Your Financial Planning Tool Belt: The Reverse Mortgage es oS Bae (NAPSA)—More than 10,000 Americansretire every day. When the time comes that you’re among them, will you be as prepared as you should be? Manyare not. A survey from investment company BlackRock found that, on average, baby boomers have a gap of more than $36,000 per year between their expected retirement income and what their savings will actually allow them. The Problem A lower-than-expected retirement income could put a damper on plans and even affect necessary expenses such as health care and housing. Some Solutions Fortunately, there are many ways Americans can ensure they will live comfortably in retirement. You can invest more in retirement savings accounts while still working, adjust how you invest, or put off retirement to sock more money awayfor the future. For those who may not have those options, one of the best-kept retirement planning secrets is gaining traction amongretirees: the reverse mortgage. Access Your Equity Reverse mortgages let homeowners age 62 and older take advantage of the equity in their homes. With this cash flow, they can delay using other retirement assets. These other sources of income (such as Social Security or an IRA) then have more time to increase in value through compounded interest. For example, according to the Social Security Administration, Social Security credit can increase by 3 to 8 percent every yearit is delayed. Expert Advice “Homeowners invest in their a \4 \ KA) i ))) A more comfortable retirement can cometo those whousetheir heads—andtheir houses. homes their whole working life. Whentheyretire, their home can start working for them,” explained One Reverse Mortgage CEO Richard Mandell. “Reverse mortgages are a tool that retirees can use for the financial flexibility needed to live comfortably while other investments continue to grow.” A reverse mortgage is very sim- ilar to a traditional mortgage— homeowners borrow money based on the value of their home, they still own their home andit can be paid off at any time. With a reverse mortgage, however, the homeowners can make payments if they choose butit’s not required. There’s also a guaranteed line of credit option, which isn’t affected if homevalues decrease. Mandell reminds retirees to keep every option in mind when making their financial plans. “If homeowners don’t consider reverse mortgages, they may be selling themselves short. All seniors should talk to a reverse mortgage specialist to see if a reverse mortgage is a good option for them.” Learn More For further information, visit www.OneReverseMortgage.com.
