The Social Security Administration announced today that there would not be a cost of living adjustment or COLA, for social security recipients. In other words, you will be receiving, on a monthly basis, the same as you did last year, unless you are part of the 30% of social security recipients who are still going to be on the hook for increased Medicare premiums.
This is the third time in the last 40 years that the government has not increased benefits due to cost of living. The government’s decision on whether or not to increase benefits is based on their inflation measurements. Inflation this year, according to the government, is so low that it decided not to increase benefits. One of the biggest factors that have kept inflation low is the lower cost of gasoline.
While the government may say that inflation is low, it does not mean that prices of food, utilities and health care are not increasing.
Now is the time to look into the benefits that a reverse mortgage can provide.
A reverse mortgage can provide cash flow in a variety of ways. You can access your homes equity through a lump sum, line of credit, lifetime monthly payments or a fixed term of monthly payments. Or you can even combine those options.
Would you like to receive payments for as long as you live in your home? How about having access to a line of credit to cover those “unexpected” expenses?
One of the biggest benefits of a reverse mortgage, besides gaining access to your home’s equity to provide extra cash, is that there are no monthly mortgage payments, but you must continue to pay property taxes, homeowners insurance and other costs related to homeownership.
There are no payments due until the property is sold, interest is transferred or the last surviving borrower permanently moves out of the home for more than 12 months, and there is no eligible surviving spouse to maintain the property as their primary residence.
By far one of the biggest reasons I hear from people not wanting to get a reverse mortgage is that they feel they won’t be able to leave anything for their children. I understand and appreciate those thoughts and feelings. However, there are two things you need to consider. First, if you raised successful and independent children, they are not relying on you to leave them something when you pass away. Second, your children are going to want you to do whatever you need to do in order to live a healthy, fulfilling and comfortable retirement.
If you are worried about how the government’s decision to not increase Social Security benefits this coming year or you are curious about how a reverse mortgage works and the benefits of getting one, then give me a call today at 541-773-3131.
I am happy to help, answer questions and run scenarios. There is no cost to speak with me or for me to put together a proposal for you. And just so you know, I can’t even take an application until you have completed counseling from an independent counselor. I am here to educate and inform. If you decide a reverse mortgage makes sense and you want to move forward, I will be there with you every step of the way.
Give me a call right now at 541-773-3131 and just ask for Matt Allen, MLO 254296.
I look forward to speaking with you.