Did you know there are 10,000 plus seniors turning 65 each and every day? I consider that number to be an astounding.
A majority of those turning 65 are homeowners. I have been puzzled just how many homeowners 65 or better own there home and are still under utilizing the usable assets that are within their reach. The most recent survey I have seen showed estimates that as many as 72% of senior homeowners 65 and older have little or no mortgage.
If you currently have no mortgage or a small mortgage; congratulations! Many seniors who have no mortgage continue to spend down their reserves in order to maintain their current standard of living. Many are depleting assets that cannot be replaced. The reality is there are many ways to preserve their current cash (liquid) assets without giving up their standard of living. In addition there are new ways to secure even more protection of your assets and still maintain your standard of living.
Many homeowners who have little or no mortgage are utilizing their current built up equity in your home. I can hear you now saying, “I don’t want to use my home equity, unless it is a last resort.” This school is thought is old school thinking. The majority of today’s seniors are savvy and well educated and understand the importance when it comes to protecting their current asset base.
Here is a list of the major concerns that could destroy and deplete your current asset base:
1. Life expectances continue to rise (Will you outlive your current assets?)
2. Minimal defined pension plan existence (Do you have one now or has it been reduced or eliminated?)
3. Rising Medical Costs (Drug costs, procedures and costs will continue to rise.)
4. Uncertainty surround government funding of Social Security (Will the deficit undermine the current trust system?)
5. Entitlement programs such as Medicare and Medicaid (What steps will be taken to increase your share of the cost imposed by a growing number of participants?)
6. What happens if you have to go to assisted living?
7. What about protecting the assets you have utilizing available financial and tax planning to reduce and maintain your estate?
Today’s new 65 is bolder and informed when it comes to finances. Most understand the importance of financial asset protection.
Your financial advisor can assist you making sure you are provided a hedge against future financial concerns. But, you must plan now to make sure you are protected.
The real concern for you, if you are 62 or better, is to evaluate how long will your current financial portfolio will maintain itself before your assets deplete and you have no funds? What if there is a double down “Great Recession?” What is the European markets implode? What about oil and food prices?
Do you have alternatives to today’s economic climate? Opening up your mind to new solutions and a new approach to your long term financial well being may be worth exploring.
For more information as to how you can better utilize your current asset (equity) pool, please give me a call today.