2sk8usa Mortgage and Real Estate Insights To Day

The writer is a BC mortgage broker located in the Vancouver area.

Today’s seniors are different. They don’t see themselves as old.

They are taking trips and buying Harleys. Some have found themselves in the roles of primary caregivers for their grandchildren. In 2000, 5.8 million grandparents found themselves the caregivers for children under the age the of 18 and that number has grown.

People don’t see themselves as retiring, taking it slow. Sitting on the porch waiting to die has no interest for them.

Some of have raised their own kids and are now raising their children’s kids. There is financial risk in that but the alternative is worst. Incomes will be challenged by this new burden.

One of the biggest challenges is the maintenance of their health under the strains of a second family or maintaining their mobility and zest for life to take trips.

As a health conscious group they plan to live longer, spend for education, spend for trips and want to stay in their own homes.

For most the retirement nest egg will not last long enough. A reverse mortgage can help keep the family together and in financial condition to meet life as it comes.

As a BC Mortgage broker in British Columbia, the author is actively interested in all aspects of mortgages in BC.
Generations are different in their world views of risk and money. Older generations wanted to leave more for their children.

Some of today’s and tomorrow’s seniors will have different motivations for seeking a reverse mortgage based on their generational values.

Generations are cohorts and a group of people born within the same time span. That span is approximately 20 years.

People form value sets from common historical events, experiences and cultural influences. We can often project how a generation will respond to different stimulus.

Researchers have grouped specific population groups into cohorts with similar experiences. Of course, there are overlaps and underlaps within generational segments. Posts that follow this one will delve into the generational differences concerning the application of reverse mortgages.

In this post, we will examine the GI generation. They are also known as the Great Generation for their efforts in WWII and the rebuilding of Europe. They bogged down during the Vietman war and got lost in the visions thing.

They have controlled the Presidency until 1992.

Now they find that their pensions are being eroded, health care costs are climbing and the dollars they counted on aren’t going far enough.

Reverse mortgages will help this generation fund the final years of their lives.

The writer is a BC mortgage broker with a keen interest in the social implications of the mortgage and real estate business.
Twenty years ago the traditional view of retirement was to leave work at age 65 and look forward to a retirement devoted to personal hobbies or other past times. These folks who survived the Great Depression and the Second World War looked forward to a relatively peaceful retirement were they could enjoy their senior years with their grandchildren and their golf.

Now the reality of reduced pension plans, higher health care expenses and eroded retirement savings are having a financial impact. The impact of corporate high jinks, tech bubbles and real estate bubbles are forcing seniors to consider extending their working lives.

Prolonging their working years because they are forced too due to financial reasons was opposed to slowing down and enjoying the remainder of their years.

These folks lived through the Depression and have been risk adverse and lived their lives accordingly. Now the risks taken by the major financial institutions have robbed them of their pensions and their portfolios.

The equity left in their homes in the form of a reverse mortgage can provide the financial stability they need.

Otherwise, will they be forced to be Walmart greeters just to put food on the table.

The writer is a BC mortgage broker who focuses on BC mortgage and real estate issues in his writing.
The shift in individual’s portfolios brings forward the large possible market for reverse mortgages in Canada.

The question before federal and provincial regulators is how they are going to fund the building contractors, extended care nurses and other factors associated with the aged.

Where is the large cohort of the boomers going to live if they cannot stay in their homes. Combined with the potential impact of extended lives the stress on the public system will be enormous. In a nutshell the bigger picture dilemma is multifaceted – a large number of seniors, the cost of retirement homes, and the manpower to maintain this population over time.

Canada cannot afford the costs associated with the impact of this large group. The ironic fact is that most seniors would prefer to live in their own home. Very few options remain for seniors to stay within their homes for the remainder of their life times. A reverse mortgage can assist with the financing of this wish and quite necessary option to retain the dignity of seniors in their own living space.

For seniors who own their own home and have sufficient equity, a reverse mortgage provides a way to fund their health needs in their senior years.