Unlocking WealthTM

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The problem facing seniors Program designed for seniors Why there may not be a better time Solutions available to seniors

Overview

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The ProblemWe’ve seen an influx of people interested in solutions designed specifically for seniors due to what’s happened in the financial markets.

Substantial loss of assets Reduced income stream Spending principal to maintain lifestyle Deteriorating home values

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The Problem Increased chance of outliving money Less capable of providing financial assistance to loved ones Potentially becoming burden to family Unknown timeframe for economic

recovery

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Program Designed For Seniors

There are programs designed specifically for seniors 62 or older that allow them to tap the equity in their home and turn it into tax-free cash.

These particular loans have:

NO income qualifications NO credit qualifications Best feature: NO monthly payments

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Program Designed For Seniors

These loans have been underutilized simply because of lack of education and awareness.

It is referred to as reverse mortgage or a

Home Equity Conversion Mortgage (HECM)

It contains built-in consumer protections.

The FHA recently introduced a HECM Saver with minimal upfront costs.

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Program Designed For Seniors

Newsday.com “The government, AARP, Kiplinger (the business forecast and personal finance advice publisher) and others, recommend the federally insured reverse mortgages as a good deal if you're at least 62, have sufficient equity in your primary residence and need a cash cushion.”

New York Times“In surveys, many borrowers say reverse mortgages have improved their lives and provided money they needed for retirement.”

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Becoming Well Known THE WALL STREET JOURNAL “How To Fund Retirement Living”

“Seniors Drawn to Mortgages That Give Back”

USA Today“Reverse Mortgage Can Be A Blessing”

Kiplinger’s Personal Finance “Your Home as a Retirement Fund”

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MetLife Mature Market Institute& National Council on Aging

Tapping

Home Equity

in Retirement

A study released in June, 2009

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“Home equity can play an important role… in coping with financial uncertainties in later life.” “…it can also help older homeowners to remain flexible and adaptive, and to respond to problems while they are still manageable.”

Tapping Home Equity in Retirement MetLife Mature Market Institute & National Council on Aging

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“Financial professionals should re-examine the role of housing wealth as an integral part of financial risk management.”

“…new ways to view reverse mortgages as part of a financial strategy to increase income security, enhance financial resilience, and improve debt management.”

Tapping Home Equity in Retirement MetLife Mature Market Institute & National Council on Aging

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“Home equity remains a major financial asset and can significantly impact retirement security. How this and future generations decide to use their home equity could determine how well many fare in retirement.”

“Not tapping home equity through a reverse mortgage increases the percent of those at risk. This change is striking: its impact on the percent of households ‘at risk’ is greater than that of the stock market crash.”

Center for Retirement Research at Boston College

The NRRI and the House, Fact Sheet No. 1, March 2010

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Because these loans have been underutilized there are some questions that come up and they will be addressed here…

Questions and Answers

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Questions and Answers

MY SPOUSE HASN’T REACHED 62 YEARS OLD. CAN I GET A HECM?

Yes. As the only borrower, if he or she moves, sells or passes away the loan would be payable.

You may choose to do so in conjunction with financial advice from a professional.

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Questions and Answers

WILL THE LENDER TAKE MY HOUSE?

No. The title stays in your name. The loan is a lien just like a conventional mortgage.

If you, or ultimately your heirs, sell the house you or your heirs keep any remaining equity.

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Questions and AnswersWHAT ARE THE COSTS CONNECTED WITH A HECM?

The costs are much the same as those of a traditional mortgage.

The only out-of-pocket cost is an FHA appraisal ($400-$450).

Also, our strategic partner has multiple lenders such as MetLife Bank and Bank of America and they shop for the best program and the best interest rate for you.

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Questions and AnswersAM I SPENDING MY CHILDRENS’ INHERITANCE?

After the loan is paid off, your heirs keep the remaining equity.

Many people use a HECM to help loved ones now. Others arrange to use some of the money to leave heirs even more. Children of many seniors are happy that their parents have a financial solution available to help them live more independently and financially secure.

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Questions and AnswersAREN’T THESE LOANS ONLY FOR THOSE IN NEED?

Certainly the HECM has helped folks in need, but it is frequently used as a tool by homeowners to enhance their retirement years in conjunction with financial advice from a professional.

For instance, it is commonly used to protect and preserve assets from the single most catastrophic risk seniors face.

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Questions and Answers

I CURRENTLY HAVE AN EXISTING LOAN. CAN I GET A HECM?

Sure, if the proceeds from the HECM are sufficient to pay off the existing loan.

Many people like it because it eliminates a monthly mortgage payment, freeing up cash for other purposes.

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Questions and Answers

WILL I OWE MORE THAN MY HOME’S VALUE?

You will never have to pay back more than the value of the house at any point in the future – guaranteed by the Federal Housing Administration (FHA).

You’ll never leave behind a debt.

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Questions and AnswersWILL IT DISQUALIFY ME FROM SOCIAL SECURITY OR MEDICARE BENEFITS?

No. Using money from your house does not affect Social Security or Medicare benefits. What’s more, it will not contribute to taxation of your Social Security benefits.

For any other entitlement, it is recommended that you speak with the appropriate governmental agency.

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Questions and AnswersI’M THINKING ABOUT MOVING. MAY I BUY MY NEXT HOUSE WITH A HECM?

Yes. A new feature allows seniors to use a HECM to purchase a principal residence, allowing you to keep significantly more of your assets to help fund your retirement and protect your assets.

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Financial Professionals Are NOT Allowed To Offer These Loans

Loan Providers May Not Offer Consumers Financial Products 

Purchasing a Financial or Insurance Product Cannot Be Required in Order to Obtain a HECM

Built-In Safeguards and Strict Regulations

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The Real Estate Bubble

Real estate values rose rapidly from 2000 to 2006 and have since deteriorated. Depressed property values are not likely to improve soon.

Why there may not be a better time

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Time to Act?

Home values not likely to recover any time soon Historically low interest rates

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Increase spendable income  Avoid spending principal Enhance lifestyle Protect and preserve assets Transfer greater wealth to loved ones

Solutions Available to Seniors

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Increase spendable income

Plan for reliable, guaranteed income

Relieve financial stress Pay off existing mortgages or

debts

Solutions Available to Seniors

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Avoid spending principal

Re-grow your assets Ensure you don’t outlive your money Strengthen your financial future

Solutions Available to Seniors

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Enhance lifestyle

Live more comfortably Travel Purchase a vacation home Have the money you need, when you want it

  

Solutions Available to Seniors

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Solutions Available to Seniors

Protect and preserve assets

Avoid depleting life savings Remain in your home Maintain your independence Avoid the expense of extended health care

“The single most catastrophic financial risk we face.” 30

Transfer greater wealth to loved ones

Help grandchildren with college Gift money to family or charity Provide for your family’s future needs

Solutions Available to Seniors

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For those who may benefit from these solutions, we have formed a strategic alliance with a company that will:

Strategic Alliance

Educate you on the program

Provide a no-cost, no-obligation consultation, including how much you may be eligible for

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With your permission, we will forward a Client Contact Form to

Spiriter Reverse Mortgage Solutions a division of a federally

chartered bank, serving folks all over

America

The Preferred Client Group will call you and explain the programs and estimate the amount of money available to you.

10101010

For More Information

They have multiple lenders and they shop for the best program and the best interest rate for you.

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