Reverse mortgages backed by the Federal Housing Administration (FHA), otherwise known as home equity conversion mortgages (HECMs), account for almost all reverse mortgages in the United States, according to the National Reverse Mortgage Lenders Association. In 2021, more borrowers entered into reverse mortgages than the year before, at almost 50,000 more. Other ways to tap into home equity, such as home equity loans, home equity lines of credit, and cash-out refinancing, were

Generally when you apply for a home loan, you often need to provide your W-2’s and tax returns. But what if you don’t have those? Luckily, there are other options. Bank statement loans are a type of loan that allows you to get a mortgage without the documents that most loans need to prove your income. They are also known as “self-employed mortgages”, “alternative documentation loans”, or "Non-QM loans". Bank statement loans can be used if you work for yourself or own a busine

Last week we went over the provisions of the SECURE Act 2.0 that affected employers, both small and large. This week, we’ll dive into the provisions that affect plan participants, as well as student loans, savings and emergencies. Provisions For Plan Participants New RMD Start Date SECURE 2.0 pushes back the beginning date for required minimum distributions from qualified plans. Individuals turning age 72 during 2023 or later will start their RMD at age 73. For those reaching

On December 29, 2022, President Biden signed the Consolidated Appropriations Act, which is part of the larger bill, the Securing a Strong Retirement Act, also known as the SECURE Act 2.0. These laws follow the Setting Every Community Up for Retirement Enhancement (SECURE) Act signed into law at the end of 2019. SECURE 2.0 covers numerous changes to retirement provisions designed to increase retirement savings, facilitate access to retirement savings, encourage employees to sa

As you move closer to retirement age, you’ve likely been involved in discussions about retirement planning. These may involve chats about employer percentages, being vested (or not), and the cost of living, or where to live. However, there is one important piece always missing from retirement conversation; the target retirement age. The average age of retirement in the United States is 61 years old. Plenty of Americans retire before and after this age, for a variety of reason

1. Dryer Vents If a washer and dryer are blocking the vents, chances are home inspectors are going to miss it. Some vents are so clogged, the dryer won’t even dry clothes. This also creates a fire hazard. If vents are relatively easy to access and straight enough, you can clean them yourself, but you may need to hire a professional. 2. Faulty Major Appliances Major appliances usually have a decent shelf life, but even if home inspectors say they are functioning , proceed with

1. Update beneficiaries and passwords When there is a change in your family such as the loss of a family member, divorce, or birth of a child, you should consider adjusting your beneficiaries on each of your accounts. Beneficiaries can be updated for your retirement accounts, as well as life insurance and even some savings accounts. You may also want to consider updating the passwords to your financial accounts for added security. 2. Review your tax withholdings If you’ve had

Many people wonder what a financial advisor does and if it is worth it. In general, these professionals help you make decisions about what you should do with your money. This may include investments or financial products that will benefit your nest egg over the long term. A financial advisor is your financial planning partner. Let’s say you want to retire in 10 years, or send your child to college. To accomplish your goals, you may need a skilled professional with the right l

For years you’ve been imagining all the things you’ll do in your retirement. Travel the world. Restore a classic car. Start a garden. Spend time with your kids and grandkids. Whatever you hope to do once you stop working, you’ve probably thought about it a lot. Have you considered the statistic that 52 percent of people turning 65 today will eventually need some form of long-term care (LTC) in their lifetimes? For many people, the possible need for future long term care can b

The three most important aspects to consider in retirement must be equally strong, support each other and work together to achieve balance, just like a three-legged stool. Here are three legs, one just as important as the next. Lifetime Income How can I position my retirement nest egg so that funds last as long as I live? A strategy involving a lifetime income stream is important when designing a balanced approach. Long-term care Who will take care of me if I can no longer ca

Did you know that just one inch of water can cause $25,000 in damage, according to FEMA? Did you know that every single house in the entire country is in a FEMA flood zone? It’s just that some flood zones are worse than others. You can check which flood zone your home is in by visiting FEMA.gov. Do I need Flood Insurance? No matter where you live in Washington State, flood insurance must be purchased as a separate, stand-alone policy because flood damage is typically not cov

Today more than ever, retirees are struggling to feel reassured about their retirement savings. In recent years, fixed indexed annuities (FIA) have gained popularity by offering guarantees to income with potential for interest accumulation. And with an FIA you can sleep at night knowing that the next stock market crash won’t force you to alter your lifestyle. With pensions no longer being offered by the majority of employers, fixed indexed annuities are a way to help create

Retirees are eligible for a few tax breaks that aren’t available to younger people. There are also many taxes that apply specifically to...

If there is one rule more important than any other when it comes to legacy planning, it is this:

How’s your retirement distribution strategy? Could it use some help?

Is Medicare enrollment automatic?  Not always. If you are already age 65 or older, you are automatically enrolled in Medicare Part A and Par

At Penny Lane Financial, we can help you lay out a plan to minimize your tax liabilities during retirement.

Your expenses will likely decrease when you retire, so you may be able to live on less money than you currently do. Of course, your expenses will depend on life style choices that you make, including where you live and what types of leisure activities you participate in, but here are some expenses that can go down when you retire: Your mortgage Paying off your mortgage before retirement eliminates one of your biggest monthly bills. You will still have to pay for insurance