Reverse Mortgage Guide

Even the rich are getting stung by declining economic conditions, according to a new study by Bell Investment Advisors in Oakland.

Bell’s third annual Affluent Boomer Survey of 500, high-net-worth individuals who turn 60 this year found that:

___Almost 30 percent of affluent boomers say they feel more financial stress now than just six months ago.

___More than 25 percent either lost jobs in the last 12 months — or know someone 60, or over, who has.

__ Some 22 percent of affluent boomers who have made lifestyle changes due to the economy are contributing less to charity.

___21 percent canceled, shortened or postponed a vacation.

___18 reduced retirement savings.

___11 percent report that they will postpone retirement altogether.

The Affluent Boomer Survey was conducted by Opinion Research Corporation from April 1-6, 2008, among a random sample of 500 adults comprised of 250 men and 250 women who were born in 1948 and have investable assets of $1 million or more.

Reading this survey several thoughts emerged:

First, a lot of people don’t have investable assets of $1 million or more. You can guess with some logic that those with lessassets are being impacted to an even greater degree by the current economic slowdown than those at the upper crust.

Second, the value of a home is not usually seen as an ”investment asset.” However that money can be accessed — if that’s what a property owner wants — by selling the property and downsizing, getting a home equity mortgage (and facing repayment costs) or getting a reverse mortgage.

Third, the economic and policy decisions made in Washington have not been cost-free. As you look at the results of the Bell study you can see that some costs have begun to come home — literally and visibly.

This entry was posted on Thursday, May 8th, 2008 at 1:44 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.