Assets in the Golden Years

For those over 60, a life crisis can take its toll on a senior’s nest egg. There are some ways to dig out of debt and get back on your feet again financially. Here are a few tricks that may help.

A reverse mortgage is one way to pad your cash flow. It is simply a loan based on the borrower’s age, the current interest rate and the appraised value of the house the senior is borrowing against. This loan can be taken as a lump sum, a monthly payment, as a line of credit or a combination of these methods of payment. This loan does not come due or require any monthly payments while the senior is still living in the home. The borrower is responsible for the real estate taxes, the upkeep on the home and the insurance. When the borrower has not lived in the home for 12 months, the estate can choose to repay the loan or sell the house and pay the loan out of the proceeds with any left over amount going to the estate. You must be at least 62 to take advantage of this loan.

Another hidden pot of gold would be a life settlements for seniors.

This is basically where a senior can sell his or her life insurance policy to a third party. The viatical company buys the life insurance policy for a lump sum payment. It is not to be confused with a typical cashing out of the policy. The senior gets a lump sum amount which is usually more than the cash invested in the policy. The company buying the policy takes over the yearly payments and becomes the beneficiary. When the senior dies, the policy is paid directly to the company that purchased the policy. This is a viable way to get that added cash back into the senior’s cash flow.

When a senior ages and has retired without the benefit of earning extra wages over and above the senior’s set retirement benefit, life changes can throw a wrench into the bankbook. Unforeseen medical bills, home repairs, or even a much needed vacation while you can still enjoy it may require you to dip into that pot of gold that you’ve been saving for a rainy day.

There is gold out there to be found. These are just a few ways that may help put the gold back into the pot.

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