Are you using all of your assets?
post by Sam Collins

Last week I met with one my senior homeowner clients who was 82.  He had been retired for over 20 years.  He mentioned his biggest fear was running out of money to live on.  Having retired over 20 years ago, he had no idea he would live to such a ripe old age.   Of course, I thought he was pretty fortunate, but in his mind he was worried.  I suggested reviewing with him his cash flow.  I use a form caused my cash flow worksheet to pinpoint where cash is going and whether or not there is a overage or shortfall. If you want a copy just email me (below) and I will send it to you free.

Have you taken inventory of your available assets?  Assets are available in both liquid and non-liquid.  Most of both forms of assets are at financial risk.  Liquid assets are generally available to you on demand.  Non-liquid assets are generally those assets we have accumulated and in order to use them must be sold to become of use.  Of course once used, most assets are gone forever, except for one.

The largest investment and asset for most of us is our home.  As we mature and continue to make mortgage payments, we are reducing the amount owed and accordingly increasing  our equity.  However, as equity increases, so does the non-liquid asset, which unless used, continues to grow.

In other words, home equity is not usable, unless you sell your home or refinance.  Selling our home is usually unacceptable, since finding someplace suitable as you have now, is highly unlikely.  Refinancing and having another payment is usually unacceptable. 

However, if you could refinance, receive cash and not make a payment; would you think this could be a solution to improve your  life?

How do you know if a reverse mortgage is right for you?

1.  Do you find you are borrowing from your current asets to make ends meet?
2.  Is your revolving debt (credit cards) increasing monthly?
3.  Has your stock portfolio eroded?
4.  Has your 401K  recovered?
5.  Are you past due or late with your mortgage payment?

If you answered yes to any of the above, maybe a reverse mortgage may be right for you?  We advise you to always consult with a financial advisor as to what is right for you.

Stay tuned as we ask more questions as to whether a reverse mortgage is right for you; plus how do you know if you are getting the best deal if you are thinking about  a reverse mortgage?
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For more information or to ask a question, you can email by using the form at the top of this page or contact me at the email below.
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If you want to see how much you qualify to receive, you are welcome to use our Free reverse mortgage calculator: http://www.seniorsrighttoknow.org/calculator.html

Sam Collins, President, Senior Advisor
Delaware Financial Capital Corp.
Licensed Mortgage Banker, DE, MD
Licensed by the PA Dept. of Banking
info@delawarefinancial.com

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