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I
f you are reading this article, you most likely live in an
Adult Community. CONGRATULATIONS! You have
taken the first step toward financial security by
TIP # 1:
Downsizing your home.
Many seniors’ largest asset is the equity in their home. As
most folks do, during your working years, you purchased a
single family home that may no longer be mortgaged. You
thus have an untapped resource of funds in the equity of this
home. Even if you have not paid off the entire mortgage,
the value of your home, if purchased forty (40) - plus years
ago, should have significant accumulated equity. By down-
sizing to a smaller home or condominium, you have tapped
this resource to assist you in achieving financial security.
According to data compiled by the Social Security
Administration, “a man reaching age 65 today can expect
to live, on average, until age 84. A woman turning age 65
today can expect to live, on average, until 86.5. These are
averages. About one out of every four 65-year -olds today will
LONGEVITY & YOUR FINANCES
TIPS FOR A FINANCIALLY SECURE RETIREMENT
By Lisa Vitiello, CPA, President
Towne & Country Management, Inc.
© iStockphoto.com
live past 90, and one out of ten will live past age 95”. Put
simply, with life expectancy on the rise, you will need all of the
money that you are able to save. Therefore,
TIP # 2: Don’t
gift your money to your kids.
Here’s a better idea. Let
your kids gift you your vacations, dinners, and theater!!! They
have a much longer time to save than do you.
If your finances are tight and you are 62 years or older,
TIP # 3: Consider a reverse mortgage.
Even if
you downsized to your current home, you may still have
equity in your home. A reverse mortgage allows you to
access this equity and defer payment of the loan until you
are no longer living in the home. There are other eligibility
requirements with a reverse mortgage, however, so please
visit www.portal.HUD.GOV.
Your financial needs are different as you age. Mortgage
payments get replaced by medical and dental expenses, as
well as supplemental medical plans (think AARP). Therefore,
TIP # 4: Prepare a new personal budget.
Include
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