Retirement Planning Starts with Income Protection
Safe – Secure – Predictable – Monthly Income
Our lives can be summarized as just one colossal Cash Flow challenge.
During decades of working and making a living – we do the work to create enough income to pay our monthly living expenses.
We diligently make those monthly mortgage payments to control the cost of the shelter.
We buy a car, educate our children, save for a family vacation, and maybe a few luxuries.
With our heads down - working hard, raising our families – we seldom take the time to stop and reflect on the decades of our upcoming and uncertain future - created by ever more extended retirement periods. Today, retirement often lasts 18 – 25 years. Our Mothers and wives will often spend 8 – 10 years in widowhood.
75% of all Seniors will spend time in a skilled care facility.
CASHFLOW AND ECONOMIC CHALLENGES:
I feel like I have been here before! Do you remember 2008 and the financial meltdown?
Who could have imaged – much less foreseen – that Amazon would lay off 10,000 employees, that United Furniture Industries would close its doors and lay off 2,700 workers? That household names of financial institutions would close their doors and fire thousands of employees.
Other notable companies with layoffs in 2022:
Ford Motor Company announced plans to lay off 2,000 salaried and 1,000 contract workers across the US, Canada, and India. With a large percentage of these layoffs occurring in Michigan.
TESLA layoffs hundreds
Meta layoffs: 13%; Twitter layoffs: 50%; Zillow layoffs: 5%.
Peloton layoffs: 20%; DocuSign layoffs: 9%; Substack layoffs 14%;
7-Eleven layoffs at least 880 corporate employees in offices in Ohio and Texas.
Senior Retirement Imperatives:
With a full retirement immediately ahead – some are planned – some are forced.
Many Boomer retirees are spending their retirement income to service debt.
Home Equity Lines of Credit
Credit Card Debt
Thousands of Seniors are often forced into retirement. Because of their age and health, by employers are forced to merge, downsize or go out of business.
CONTROLLING THE COST OF SHELTER _ is and always will be _ the most significant monthly expense, whether you are 35, 55, or 75. Carrying Mortgage Debt into retirement is a substantial drag on retirement income. The monthly mortgage payment is not an option – you must pay to stay!
Numerous studies from the Department of Housing and Urban Development make one thing clear: seniors want to age in place. These studies also indicate that effective aging in place has significant emotional benefits over institutional care.
To help alleviate the risks and concerns surrounding the ability of senior homeowners to age their way – housing wealth must be carefully and responsibly evaluated when developing a comprehensive retirement income plan.
Alicia H. Munnell _ Center for Retirement Research at Boston College.
She said, “In the past, people saved their home equity to leave it for their children.
That time has passed. We can no longer turn our backs on home equity as a crucial part of the retirement income plan. It is a luxury that we can no longer afford! Today seniors are more concerned about not becoming a burden on their children.”
THE FINAL NOTE: Special Financial Options with the LifeStyle Home Loans.
Please get in touch with me if you or your Senior Clients have a housing need or a real estate question. I am happy to listen and make available the management experience and financial resources of Mutual of Omaha Mortgage. A simple, straightforward retirement income strategy – by eliminating the monthly mortgage payment.