An analysis of data has found that nearly 100,000 seniors who applied for reverse mortgages faced foreclosure after they fell behind on taxes or insurance, according to this article inUSA Today. A big number of these seniors are urban African Americans, who are now struggling in retirement as a result of foreclosure. Traditional lenders usually refused cash-strapped minority seniors, which explains why they became such easy prey, says an expert. “These areas had demand, and they couldn’t access credit any other way.”
Clients should review their estate planning strategy with their financial advisors once the bill that would scrap the stretch IRA option for non-spouse beneficiaries clears Congress, according to this article on CNBC. Stretch IRA allows these heirs to take required minimum distributions from inherited accounts based on their longer life expectancy, thereby stretching the tax-deferred growth of the inherited assets over a longer period. Advisors should prompt their clients to reevaluate their beneficiaries, add flexible options to their portfolio, do a Roth conversion and buy permanent life insurance as an alternative.
A survey by Schwab Retirement Plan Services has found that many Americans are saving less than what they should to save enough for their retirement years, according to this article on MarketWatch. Some 51% of the respondents are saving only 10% or less of their income in their retirement accounts, the survey found. A big number of respondents were confident of their financial decisions and felt that they didn't need professional advice. “They may think their situation is simple, but your wealth is your wealth. Put yourself in the best possible position and take advantage of the help out there,” says an expert.
Seniors should consider delaying retirement if they have meager income and need more time to save enough for retirement, according to this article on The Motley Fool. They should also consider working past their retirement age if they think that will easily get bored once they leave the labor force for good. Those who are still healthy should also hold off retirement so they can continue earning and stretch their savings a little longer.
