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Old 11-10-2018, 07:06 AM
 
2,443 posts, read 2,070,942 times
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Quote:
Originally Posted by mathjak107 View Post
Reverse mortgages are really just preselling the house . The problem for many who count on reverse mortgages is they postpone the inevitable and erase any hope of escaping it .

People who tend to be under funded and need a reverse mortgage generally find it is a temporary stop gap because rising costs can eventually just eat them up anyway . A reverse mortgage is a loan .

Now they end up with no or little equity left to relocate with .

Renting and investing elsewhere can work out just fine . The fact I can’t take a reverse mortgage is irrelevant because I would likely never take or need one since my investments provide even more .
I don't know a lot about reverse mortgages but I see more negatives than positives with them.

 
Old 11-10-2018, 07:21 AM
 
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It really depends on personal situation . The best time to take these is when you don’t need the money and don’t care about home equity because you don’t need the money . So you just use it to increase the fun budget and fill more things on the wish list .

It is like we can buy now with a reverse mortgage to purchase . We plunk down half the price of the house , and never make a mortgage payment again .

I can easily pay cash but since in the scheme of things the home equity would be such a small part of total assets that leaving it for heirs or a source of emergency funds is irrelevant . So we could safely do this and use the difference to be snow birds and have two places .

That is different than a senior pulling out equity to live and if they have to move or expenses go up they have no equity left so they postponed the inevitable and now are really in a bind. Plus the lender requires you to maintain the house possibly costing more money then you can afford to spend .

We decided not to use a reverse mortgage to purchase because the terms were so poor and in good conscious I can’t get myself to do it. It ate up equity way to fast for my taste.

But like a loan , they work best for those who don’t need the money and merely just want the money

Last edited by mathjak107; 11-10-2018 at 07:36 AM..
 
Old 11-10-2018, 08:06 AM
 
8,842 posts, read 5,129,939 times
Reputation: 10111
Quote:
Originally Posted by mathjak107 View Post
Reverse mortgages are really just preselling the house . The problem for many who count on reverse mortgages is they postpone the inevitable and erase any hope of escaping it .

People who tend to be under funded and need a reverse mortgage generally find it is a temporary stop gap because rising costs can eventually just eat them up anyway . A reverse mortgage is a loan .

Now they end up with no or little equity left to relocate with .
.
Well yes, it is better to not need a RM. It's better to have a huge pile of money than to not. But that does not describe everyone's situation.

If I don't have enough money today to buy my meds, buy food, and pay utilites, what difference does it make that I am limiting my future options?
 
Old 11-10-2018, 08:37 AM
 
20,554 posts, read 16,625,375 times
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Quote:
Originally Posted by jrkliny View Post
Fordham tuition is way, way over the cost of college at City of NY or SUNY colleges and universities. Way over!!


A great many kids drag their parents into paying for expensive schools. The kids often also take out loans. Many of them do not work that hard and do not exactly overachieve. Then they complain about the costs. No one in NY State should EVER, EVER complain about the cost of college. You can get a first rate education for less than the cost of day care. Even less expensive are the choices for community colleges. I am not sure if college is as cheap in NJ, but I think it is pretty close.
She didn’t live in NY. I’m simply debunking the myth that all kids who get into expensive private colleges get financial modifications that make it affordable. It’s not the case for most kids. Using kids who are Olympians as an example seems silly, as that is 1 in tens of thousands and the kid would be sought after.

It was a stupid decision, especially as she got homesick and transferred the second year.
 
Old 11-10-2018, 09:12 AM
 
Location: SoCal
13,225 posts, read 6,326,744 times
Reputation: 9833
How do you put somebody on ignore list? I don’t need to see these pesky comments. I’ve yet to see anything useful come out of this poster.
 
Old 11-10-2018, 09:31 AM
 
Location: SW Florida
9,751 posts, read 7,033,290 times
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Quote:
Originally Posted by ocnjgirl View Post
I wasn't intending to make the focus on age of retirement, sorry about that. But I think sometimes those with pensions assume most people have pensions, then, like OP, are surprised when they meet people who are struggling. But even with savings, I think the pension makes a huge difference in retirement ability, disregarding choice.
My husband and both receive pensions, not a princely sum by any means but enough to make our retirement years much easier financially. We also get SS, my husband's reduced by 40% due to the Windfall provision since he also gets a federal pension (but still happy to get the SS as it was more than he expected). But we 're well aware that defined pension plans have pretty much gone the way of the dodo bird, and think we can never take for granted that changes will never be made that might adversely affect our pensions, or SS. Hence the plans we made to save money for retirement in 401Ks, IRAs, Thrift savings plans, and our plans to be as debt free as possible. Just to have as many bases covered as we could.
 
Old 11-10-2018, 09:37 AM
 
2,443 posts, read 2,070,942 times
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Quote:
Originally Posted by NewbieHere View Post
How do you put somebody on ignore list? I don’t need to see these pesky comments. I’ve yet to see anything useful come out of this poster.
Yeah I know what you mean.
 
Old 11-10-2018, 09:41 AM
 
Location: SoCal
13,225 posts, read 6,326,744 times
Reputation: 9833
Haha, it works, I finally figured out. No more Jibber Jabber.
 
Old 11-10-2018, 12:37 PM
 
Location: State of Grace
1,582 posts, read 1,137,494 times
Reputation: 2614
I’m a firm believer in love, faith, and family, and I mind the derogatory comments about people who ‘Had too many kids.’

Having sufficient funds to raise decent human beings has little to do with finding oneself old, alone, and ‘poor.’ Who could have predicted, fifty years ago, the radical shift in societal values that has become our reality today?

Not too long ago, multigenerational families were the norm, and there was no need to save for retirement because one’s investment was in one’s family, both children and aging parents, although I don’t know of anyone in my generation who attached a dollar value to *any* family member.

Mothers who stayed home to raise (and often homeschool) their children are hardly deserving of any kind of disparagement. A homemaker’s (remember when people had homes instead of houses?) job was a 24/7 endeavour, as it still is today, and I can’t think of a more important role in any culture you care to name.

Many mothers also took in children whose mothers, for whatever reason, needed or wanted to work, thus adding to the family’s income, and many ran home-based businesses of other kinds, and some worked alongside their husbands on the family farm or homestead. Not too many took vacations, and I knew of none who wee jet setters.

Grandma and grandpa worked alongside their grown children, teaching, dispensing sage advice and wisdom, and serving as welcome extra hands where the children were concerned. Older grandparents always had time, available laps, hugs and kisses, stories to tell, and most importantly they had love, enriching the lives of their grandchildren beyond measure. We don’t see much of that today.

The word ‘latchkey’ is actually in the dictionary, describing kids who come home from school to a house (not a home) with no one there, and no one to care, and we wonder why young people today are focused on money, material possessions, and not family. Many of those kids were farmed out to day care centres at two months old! This is the reason why they have no sense of family, roots, or obligation to parents, and it’s hard to blame them, but a byproduct of our disgraceful societal changes is ‘poor’ old people who’ve been caught in the crossfire, and now have nowhere to go.

I know a number of these bewildered grandparents who live in RVs, vans, or cars, and most of them plan to take their own lives when they can no longer care for themselves, rather than die in an institution somewhere. This does *not* speak well of who we have become. From unwanted (usually aborted) babies to neglected and abandoned parents, this is what we’ve become. May God forgive us!

There is no excuse for any parent who worked hard, loved, and properly raised their children to be ‘poor’ and struggling as their lives draw to a close.

There can be no true wealth without family. Money is just paper, after all.

Love and All Good Things,

Mahrie.
P.S. We had nine (home educated) children, and currently have six grandchildren, and we raised them all to value love, faith, and family. Sadly, only one still does. The others have succumbed to the *new* value system, which has no value at all.
 
Old 11-10-2018, 12:45 PM
 
71,532 posts, read 71,712,424 times
Reputation: 49120
Quote:
Originally Posted by Petunia 100 View Post
Well yes, it is better to not need a RM. It's better to have a huge pile of money than to not. But that does not describe everyone's situation.

If I don't have enough money today to buy my meds, buy food, and pay utilites, what difference does it make that I am limiting my future options?
Well that was my point . When someone is short money like you describe, selling the house and downsizing or moving to a cheaper area is the answer . Draining the equity from the home , and having rising expenses is a recipe for a disaster .

That person you described is likely postponing the inevitable and making a bad mistake with that loan.. they will lose the option to sell and be able to downsize.

Let this sink in , it is the number one issue with reverse mortgages
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