Reverse Insider | January 2022

Reverse Insider | January 2022

Y E A R 2 | V O L 1 | J A N U A R Y 2 0 2 2 REVERSE Insider I id R E V E R S E M O R T G A G E F U N D I N G N E W S L E T T E R

It’s a New Year! And It’s Time to Get Your Retirement Finances on Track! NEW YEAR, NEW RETIREMENT-READY YOU!

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Each new year presents a new oppor tuni ty for a f resh perspect i ve. Whether you ’ re approaching ret i rement , or your post -work ing chapter has al ready begun, i t ’ s a great t ime to take stock of where are and where you want to be in the future. IT’ S A NEW YEAR! AND IT’ S TIME TO GET YOUR RETIREMENT FINANCES ON TRACK!

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Get started by asking yourself the following:

How healthy is my savings? Take note of all your investments and account balances, as well as how much you’re contributing. Do you have an emergency fund or are you trying to build one? Remember, you can’t figure out how much to save each month unless you know what you already have. How much more do I need? Think about how you want to live in retirement. Do you expect your expenses to go down when you retire, or will you spend as much as you do now? Most experts agree that your retirement income should be about 80% of your pre-retirement annual income. So if leave the workforce making $100,000 a year, you’ll need a minimum of $80,000 annually to have a comfortable retirement lifestyle. What’s my retirement budget? Outline the monthly and long-term expenses you’ll need to cover once you’re retired. Are these costs covered by your anticipated retirement income or savings? What changes can you make now to increase your budget on a retirement income?

Where will I live in retirement? Is your current home equipped to meet your changing needs as a retiree? Are you looking to relocate entirely? Choosing a retirement location has a big impact on your financial goals.

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FALL-PROOFING YOUR HOME: 6 STRATEGIES TO CUT YOUR RISK CR E AT E A S A F E R L I V I NG S PAC E WI TH THE S E S I X T I P S TO HE L P M I T I GAT E S L I P S AND F A L L S I N YOUR HOME .

Upgrade bathroom safety. Did you know that January is National Bath Safety Month? Consider making simple modifications, like installing a shower chair for stability and comfort, or swapping out a fixed shower head for an adjustable one. Wall-mounted grab bars inside and out of the shower and tub are another smart safety addition. Remove tripping hazards. Examine every room and hallway for loose floorboards and slippery rugs. Secure loose rugs with a slip-resistant backing, or choose non-slip options instead. Secure your pets. Cats and dogs can be great companions, but they can also be safety hazards when they’re stretched out on the floor. While you can’t control their whereabouts all day, it’s important to be watchful, and designate an area for their supplies, toys and bed. You may want to secure them in a room during the night, so you don’t trip on them upon waking.

Remove the clutter. Shoes at the bottom of the stairs? Piles of magazines next to the couch? The most basic step for safeguarding your home from falls starts with keeping it neat and free of clutter. Adjust the lighting. Ensure that every room has adequate, accessible lighting. This is especially important for staircases, in the bedroom for when you wake up in the middle of the night and outside your home near your front door and walkway. According to the Centers for Disease Control and Prevention, slips and falls are the number one cause of injuries for older individuals. The resulting injuries can vary in severity — from cuts and fractures to serious brain trauma and even death. Aside from physical injury, they can also cause fear and anxiety, compromising your sense of safety and security, especially if a fall occurs in your own home. The good news is there are many preventive measures you can take within your house and on your property to help protect yourself and your loved ones.

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Consider single-level living. Even with sturdy guardrails or bannisters, stairs elevate your fall risk. If possible, move your bedroom to the first floor. A reverse mortgage from Reverse Mortgage Funding (RMF) can provide the funds to make home renovations like these easier. Because increasing home safety can carry a sizeable price tag A reverse mortgage is a safety net for your health and well-being. Specifically designed for homeowners age 55 or older*, it allows borrowers to leverage the equity built up in their home as a lump-sum payment, a monthly payment or a line of credit that’s available if and when you need it —to use at your own discretion. ‡

*Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit www.reversefunding.com/equity-elite for details.

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Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.

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HEALTH CHALLENGES HAPPEN HOW WI L L YOU P AY FOR THEM?

We al l know that medi cal care i s expens i ve. As you get older , and you ’ re l i v ing on a f i xed income, i t can be harder to cover the costs . According to F idel i ty , even wi th Medi care, the average 65-year -old ret i red couple today would need about $300,000 in af ter - tax sav ings to pay for medi cal bi l l s dur ing thei r post -work ing years . I t ’ s not always easy to di scuss your heal th or plan for your future needs , but i t ’ s impor tant to star t the conversat ion now. Fi l l ing the coverage gaps I t ’ s no secret that heal th chal lenges can increase wi th age. A recent study revealed that ret i rees are 40% more l i kel y to have had a hear t at tack or st roke compared to those st i l l work ing. From unexpected surgery to phys i cal therapy or hear ing aids , insurance and/or government benef i ts may not cover the ful l costs . In fact , out -of - pocket heal th costs for older Amer i cans covered by Medi care wi l l consume up to 50% of the average Soc ial Secur i ty income by 2030. Even i f you have the money in your ret i rement account to pay for care, wi thdrawing ear l y can have consequences .

A reverse mor tgage can be a s igni f i cant source of funds for ret i rees to help ease your money worr ies . Thi s f inanc ial tool can help make i t eas ier to af ford the care you need, wi thout necessar i l y hav ing to draw down on your invested assets or go into debt . Des igned exc lus i vel y for older homeowners , a reverse mor tgage al lows you to tap into the equi ty you ’ ve bui l t up in your home, al l whi le l i v ing in i t and retaining ownership. You can access the money as a monthl y payment , a lump sum or a l ine of credi t that ’ s avai lable i f and when you† need i t . As wi th any loan, there are cer tain obl igat ions that must be met to remain in good standing , inc luding the payment of taxes , insurance and related fees , as wel l as keeping up wi th bas i c home maintenance. †

Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. †

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ENSURING HOME SECURITY DURING RETIREMENT WITH A PROACTIVE PLAN For older Americans or their loved ones, home security and safety are key to aging in place. Over 2.5 million burglaries are committed annually in the United States. Twenty-seven percent of the time, a person is home while the burglary occurs, and 26% of those people sustain harm.

Instead of worrying if your home is safe, do something about it. The following tips can help safeguard your home, as well as your personal well-being.

Keep al l doors locked — even whi le you’ re home. I f you don ’ t have a peephole, ask v i s i tors to ident i fy themsel ves before you open the door . Never leave out a “hidden” spare key. Under the door mat or a f lowerpot are the f i rst places someone wi l l look for your ext ra key . Instead, leave a spare set wi th a loved one or t rusted neighbor . Be wary of your bl inds and curtains . Of course you can let the sunshine in on a ni ce day , but don ’ t let your guard down. Cut t ing of f v i s ibi l i ty for potent ial cr iminal s can help deter them and thei r bad intent ions . Don’ t advert ise travel plans . I t ’ s f ine to let your fami l y and c lose f r iends know about your upcoming t r ip. But keep i t of f soc ial media and avoid tal k ing about i t publ i c l y in a large group. You never know who ’ s l i stening. Secure al l personal informat ion. I f you don ’ t own a safe, i t might be a good idea to invest in one. You should have one des ignated spot for bi r th cer t i f i cates , passpor ts , tax documents and other sens i t i ve mater ial s .

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Extended home protection The following strategies take your security efforts a step further for increased peace of mind.

Install automated lighting. Automated lights have many benefits. They can give the appearance that someone is home, making your home less of a target. They can also detect motion to alert you when someone enters a room, steps onto your porch or walks up your driveway. Outfit your home with monitoring devices. Systems like burglar alarms, smoke detectors or carbon monoxide detectors provide 24/7 support and can alert you at the first sign of danger. Some even offer video monitoring and remote options, so you can check in while you’re away. † Wear a communication/medical alert system. Medical alert systems are viable options for older people with mobility issues or chronic health conditions. These wearable devices enable the user to push a button when help is needed, so they can live safer independently at home.

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There ’ s no one- s i ze- f i ts -al l roadmap for growing older . Near l y 90% of adul ts over 65 want to age in place, l i v ing out thei r ret i rement years in a home they know and love. But wi th that comes a fai r amount of quest ions and concerns . I s my home safe? Do I have a suppor t i ve communi ty I can count on? Can I af ford to l i ve in my home on my ret i rement income? I f you or a loved one are cons ider ing the poss ibi l i ty of aging at home, here are three cons iderat ions to keep in mind. AGE IN PLACE SAFELY AND COMFORTABLY WITH THE HELP OF A REVERSE MORTGAGE

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Your needs will change, and your home should change with them. According to the U.S. Census Bureau, only 10% of U.S. homes are considered “aging-friendly.” Take a thorough assessment of your home, and any modifications or safety measures you need to take to make sure it’s suitable for the years to come. Whether that’s moving your bedroom to the first floor, investing in a home security system or adding grab bars in the shower, the home must work for your everyday needs. There will be times when you’ll need help. Aging in place gives you more opportunities to maintain your current lifestyle, but that doesn’t mean you won’t need occasional assistance. Compile a list of go-to individuals or service companies that you can rely on if you need a plumber, grocery delivery or sidewalks shoveled after a snowstorm. While you may intend to take on these tasks on your own, you never know when extra help may be needed. Your friendships and relationships may become even more important to you. Who would you call for a cup of coffee, a walk in the park or a shopping companion? Will your living situation allow for these social opportunities? Social support is a vital component of healthy aging, and you can’t deny your human need for companionship.

Ready for Next Month's Reverse Insider? You can expect to find it in your email inbox in early February.

Thank You for Reading!

Thi s mater ial has not been rev iewed, approved, or i ssued by HUD, FHA, or any government agency . The company i s not af f i l iated wi th or act ing on behal f of or at the di rect ion of HUD/FHA or any other government agency . Borrowers who elect a f i xed rate loan wi l l recei ve a s ingle di sbursement lump sum payment . Other payment opt ions are avai lable onl y for adjustable rate mor tgages . † As wi th any mor tgage, you must meet your loan obl igat ions , keeping current wi th proper ty taxes , insurance, and maintenance. Avai lable to borrowers as young as 55 in select states onl y . Higher minimum age requi rements may appl y . Vi s i t www. reversefunding. com/equi ty-el i te for detai l s . # Ch a r g e s s u c h a s a n o r i g i n a t i on f e e , mo r t g a g e i n s u r a n c e p r em i ums , c l o s i n g c o s t s a nd / o r s e r v i c i n g f e e s , i f a pp l i c a b l e , ma y b e a s s e s s e d a nd w i l l b e a dd e d t o t h e l o a n b a l a n c e . A s l on g a s y ou c omp l y w i t h t h e t e rms o f t h e l o a n , y ou r e t a i n t i t l e un t i l y ou s e l l o r t r a n s f e r t h e p r op e r t y , a nd , t h e r e f o r e , y ou a r e r e s pon s i b l e f o r p a y i n g p r op e r t y t a x e s , i n s u r a n c e a nd ma i n t e n a n c e . F a i l i n g t o p a y t h e s e amoun t s ma y c a u s e t h e l o a n t o b e c ome i mme d i a t e l y du e a nd / o r s ub j e c t t h e p r op e r t y t o a t a x l i e n , o t h e r e n c umb r a n c e o r f o r e c l o s u r e . T h e l o a n b a l a n c e g r ows o v e r t i me , a nd i n t e r e s t i s a dd e d t o t h a t b a l a n c e . I n t e r e s t on a r e v e r s e mo r t g a g e i s no t d e du c t i b l e f r om y ou r i n c ome t a x un t i l y ou r e p a y a l l o r p a r t o f t h e i n t e r e s t on t h e l o a n . A l t hou g h t h e l o a n i s non - r e c ou r s e , a t t h e ma t u r i t y o f t h e l o a n , t h e l e nd e r w i l l h a v e a c l a i m a g a i n s t y ou r p r op e r t y a nd y ou o r y ou r h e i r s ma y n e e d t o s e l l t h e p r op e r t y i n o r d e r t o r e p a y t h e l o a n , o r u s e o t h e r a s s e t s t o r e p a y t h e l o a n i n o r d e r t o r e t a i n t h e p r op e r t y . ©2 0 2 2 R e v e r s e Mo r t g a g e F und i n g L L C , 1 4 5 5 B r o a d S t r e e t , 2 nd F l oo r , B l oomf i e l d , N J 0 7 0 0 3 , 1 - 8 8 8 - 4 9 4 - 0 8 8 2 . Comp a n y NML S I D : #1 0 1 9 9 4 1 . F o r l i c e n s i n g i n f o rma t i on , g o t o : www . nm l s c on s ume r a c c e s s . o r g . A r i z on a Mo r t g a g e Ba n k e r L i c e n s e #0 9 2 7 6 8 2 ; L i c e n s e d b y t h e De p a r tme n t o f F i n a n c i a l P r o t e c t i on a nd I nno v a t i on und e r t h e C a l i f o r n i a R e s i d e n t i a l Mo r t g a g e L e nd i n g A c t ; L o a n s ma d e o r a r r a n g e d pu r s u a n t t o a C a l i f o r n i a F i n a n c i n g L aw l i c e n s e ; Ge o r g i a Mo r t g a g e L e nd e r L i c e n s e e #3 6 7 9 3 ; Ma s s a c hu s e t t s Mo r t g a g e L e nd e r L i c e n s e #ML 1 0 1 9 9 4 1 ; L i c e n s e d b y t h e New J e r s e y De p a r tme n t o f Ba n k i n g & I n s u r a n c e ; L i c e n s e d Mo r t g a g e Ba n k e r - NY S De p a r tme n t o f F i n a n c i a l S e r v i c e s - i n - s t a t e b r a n c h a dd r e s s 7 0 0 Co r po r a t e B l v d , Newbu r g h , NY 1 2 5 5 0 ; Rhod e I s l a nd L i c e n s e d L e nd e r . F o r C a l i f o r n i a c on s ume r s : F o r i n f o rma t i on a bou t ou r p r i v a c y p r a c t i c e s , p l e a s e v i s i t h t t p s : / / www . r e v e r s e f und i n g . c om/ p r i v a c y . No t a l l p r odu c t s a nd op t i on s a r e a v a i l a b l e i n a l l s t a t e s . T e rms s ub j e c t t o c h a n g e w i t hou t no t i c e . C e r t a i n c ond i t i on s a nd f e e s a pp l y . T h i s i s no t a l o a n c omm i tme n t . A l l l o a n s s ub j e c t t o a pp r o v a l . ‡