Changes in reverse home mortgages due at end of September

FALL FORECAST FOR SENIORS HOLDS BOTH

GOOD AND BAD NEWS

Isn’t it encouraging to know that more older Americans have jobs: 35.9 percent of men, ages 65-69, and 25.6 percent of women in that same age group, making those figures the highest since records began to be kept in 1981 .

The employment rate this summer for women age 70-74 was also higher than any previous summer. Although people younger than 30 are still having trouble finding permanent jobs, it appears that older workers are postponing retirement, whenever feasible. It could also be possible that many employers are beginning to fully appreciate the work ethics of mature Americans, their reliability, positive attitude and expectation of a hard day’s work for a day’s pay.

The bad news is that more elderly Americans are having trouble making ends meet and now under consideration by Congress are cuts in the food stamp and other programs. Additionally, new rules, which go into effect on Sept. 30, will make it much harder to get a reverse mortgage.

Although the new rules may prove burdensome to a few, to my mind, they are a much-needed improvement that should prevent many seniors, for whom a reverse mortgage became an unwise decision culminating in a loss of money as well as the eventual loss of their homes, from making the same mistake. The major changes are these:n There will be a limit on the amount of money that can be withdrawn in the first year, which will encourage people to use a reverse as a long-term retirement planning tool, rather than using it in a crisis.n A lower loan amount (about 15 percent less home equity, on average, than the current maximum allowable now.) There will also be some higher fees based on the amount withdrawn.n Lenders will be required to do a financial assessment to ensure that homeowners can afford to make all the necessary tax, insurance and other payments over the life of the loan. All income sources will be looked at as well as the borrower’s credit history. If a lender determines that you might not be able to keep up with property taxes, required insurance, etc., you will have to set aside money in a reserve. This last requirement could disqualify many borrowers and hits hardest in areas which have modest home values, but higher property taxes and insurance rates.

Reverse mortgages were created to help seniors remain in their own homes by allowing those 62 or older to convert part of the equity in their homes into tax-free income. Seniors could elect to receive the money as lump-sum front payment, a line of credit, or as a fixed monthly payment.

While this was a good product for those seniors whose home was suitable in both the layout and upkeep costs to enable them to remain there for another 7-10 years, it was not a good solution for seniors who, due to changing health or economic conditions, would need to move because the up-front costs of the reverse are quite high. 

Unfortunately, there was a great deal of telemarketing fraud in which seniors were approached by telemarketers offering “free information” on how to turn their homes’ equity into cash. Many seniors paid out thousands of dollars to these providers who did little more than referring their loan application to mortgage lenders. Some seniors were also advised to invest all or most of the cash into an annuity which allowed the provider to pocket about 8-10 percent of the loan.

Other women, whose name was not on the title to the house and became widows after receiving a reverse mortgage, lost their homes. Even with the new rules regulating reverse mortgages, seniors must give careful thought if this is an appropriate product for them. Call AARP about their publications on reverse mortgages, speak to an elder law attorney or a local trusted bank official. 

You may wish to consider a home equity line of credit or refinancing your current loan or think seriously about a move to a smaller, less costly residence. Depending on your age, current health needs and income, an assisted living or continuing care community could also be an excellent choice.

Contact Jean Cherni, certified senior adviser for Senior Living Solutions and Pearce Plus, a helpful, full-service program for seniors contemplating a move, at jeancherni@sbcglobal.net or 49 Rose St., Apt. 510, Branford, 06405.

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Just what does Labor Day mean in 21st-century America?

Labor Day brings forth many different feelings. For some, it sadly marks the end of summer. For mothers, it is often a welcome relief; the kids will finally be going back to school, and for many who regularly toil long hours, it brings a needed day off.

We should remember, however, that Labor Day had its origins in the labor union movement; especially their push to win an eight-hour workday. It is somewhat ironic that at the moment, France which has been held up as a model of social enlightenment with 35-hour work weeks and a five-week summer vacation, is having to rethink some of its liberal worker policies in order to compete in the international marketplace.

Here in America, we are also revisiting our long-held belief that anyone can become hugely successful if he (or she) just works hard enough. We are so defined by what we do, that now even women of wealth pursue meaningful careers.

The initial question asked at social functions is no longer where you are from or who your parents are, but what do you do? Thomas Jefferson said that his proudest achievement had been in creating a meritocratic United States where “a new aristocracy of virtue and talent replaced the old one of unfair privilege.” What would Jefferson have thought about today’s Washington where ambassadorships are given to generous political donors, and large American corporations hire the sons of wealthy Chinese businessmen as enticements to invest vast sums of money in their companies? Sorry, Tom, you did not put an end to “unfair privilege.” It remains alive and well in America today. America is still a hard-working nation, but that workplace has undergone some vast changes. The fabric mills of New England and the auto assembly lines of Detroit no longer provide unskilled workers with lifelong employment and good wages. Lady Liberty no longer welcomes the poor, huddled masses yearning to breathe free, but reaches out instead to the doctors, engineers and scientists from abroad. We no longer can count on large companies like AT&T and General Electric to offer lifetime employment to loyal employees.Even top executives, such as the recent dismissal of the much-touted new head of J.C. Penney Co., Ron Johnson, after only 17 months in the position, are no longer exempt from being fired. As a result, employees are less likely to remain loyal to one company and move about more often.We also have come to expect more from our work since with the advent of the Internet and smart phones, we spend even more time in work-related activities. It no longer suffices that our work pays the rent; we want it to fulfill our emotional needs as well.

Our workplace is in a constant state of flux. At present, the majority of married couples are both working, there are more women who are the major breadwinners and more and more women cracking that glass ceiling. As to the future, who knows?

So whether you are on the open road, stuck in bumper-to-bumper traffic, seeking the sun somewhere, visiting relatives or just relaxing at home with your feet up, this senior worker wishes you a most Happy Labor Day!

Contact Jean Cherni, certified senior adviser for Senior Living Solutions and Pearce Plus, a helpful, full-service program for seniors contemplating a move, at jeancherni@sbcglobal.net or 49 Rose St., Apt. 510, Branford, 06405.

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Words to ponder no matter how old we are

“Act your age” was an admonition I often received as I was growing up.

But I was always tall for my age, and because I looked older than my years, sometimes much more was expected of me than of my petite cousin, who purposely could appear helpless when the occasion demanded. At other times, I recall wishing desperately to be older than my years; when at 5, I wanted the training wheels removed from my bike or at 13 wearing lipstick (a pale rose shade) and purchasing my first bra and finally at 16, being allowed to drive the family car.

All of this came to mind recently when I went for a hearing test and was told my hearing loss was “age appropriate.” I’m still not sure exactly what that means, but as far as I’m concerned, I still feel, (on most days) a lot younger than my actual years and any loss is not appropriate at all. At every age, we are told that age has “restrictions.”

Now that I have lived a certain number of years and come to the full realization that eluded me in youth… that unfortunately, I, like all other living creatures, will one day depart this life, I want to be able to do as I feel; not what someone else says my age is supposed to be able do. Physicians, you are hereby put on notice. When I pay you a visit, tell me what you can or cannot do. Do not preface any suggestion with a sigh and the words, “Well, at your age.”

True, some days due to circumstances beyond my control when the arthritis kicks in when it rains, or I have over-exerted the previous day and I feel a decade beyond my years, I push a little harder or try to find the humor in it all. And when friends ask, “How are you?” they don’t really want to hear a list of complaints.

Most days, however, life feels pretty good; I am doing satisfying work I enjoy with people I like and respect; I have an active social life and a few people I count as close friends, my general health is pretty good, and I’m blessed with abundant energy.

The “don’t haves” seem relatively unimportant. And if I glance in the mirror in a dim light, I can still manage to envision traces of the slender, young woman, I once was. I am often reminded of the “story” or the interpretation behind one of my favorite paintings, “Woman in a Striped Dress, by Edouard Vuillard; a copy hangs in my bedroom. The painting depicts two women arranging flowers; the young woman, very much in evidence is in the foreground while the older woman is just visable in the background. The two women look similar enough to be related; some feel Vuillard painted his mother and sister with whom he lived. Others feel the painting represents the same woman, presently young, but the older woman in the background is the reflection of what she will become.

I like this interpretation because what we do in our youth, does determine to a great extent, what kind of an older person we will become and also because when we are older, although not readily evident, the young person we were is still present and part of us.

We would all have a better understanding of one another if we could see the adult potential in the young and the youthful spirit still remaining in the aged.

Contact Jean Cherni, certified senior adviser for Senior Living Solutions and Pearce Plus, a helpful, full-service program for seniors contemplating a move, at jeancherni@sbcglobal.net or 49 Rose St., Apt. 510, Branford, 06405.

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French, golf, yoga, pottery -- why not learn to do something new

Americans now work an astounding 50 percent more than the Italians, French or Germans, and while that is not necessarily a negative; especially if you enjoy your work, it does indicate that we need to learn how to take brief respites from our usual workday routines
Major companies have recognized that it is both a recruitment and team-building asset to install fitness centers at corporate headquarters. Encouraging employees to take breaks during and after the work day results in fewer sick days and helps to build better personal relationships among employees.

Seniors who have retired also need to take breaks from what can become a boring routine.

Now is an ideal time to check with your local senior center and adult education department and sign up for fall offerings Be open to new possibilities like line dancing, pottery making or even learning a foreign language.

Take a risk ... try something far afield. The investment is minimal if you don't like it, and nobody is going to judge you. The Guilford Senior Center's fall offering go from A to Z with adult aerobics to zumba lessons or oil painting and Italian language lessons if you want something more restful.

They are also offering a weeklong trip to Myrtle Beach, S.C., in October as well as an Oct. 16 trip to Westchester Dinner Theatre to see the wonderful musical, "Kiss Me Kate.".Speaking of wonderful musicals, I recently viewed two local productions which were every bit as good as the originals I had enjoyed on Broadway.

"Hello Dolly" has been extended until Sept. 14 at the Goodspeed Opera House and is one of their best productions ever. If you have never enjoyed this unique and beautiful Connecticut treasure (the first regional theater to ever win two Tony Awards) situated along the Connecticut River in East Haddam, treat yourself to this knock-out show. The other summer special is "Dream Girls" bringing the house down at the Ivoryton Playhouse until Sept. 1.

This is an unusually ambitious production for the smaller, less-expensive Ivoryton, where I have often enjoyed small-scale musicals and delightful comedies. "Dream Girls" requires an extensive cast of singers and dancers who can also act as well as elaborate costumes. The Ivoryton is to be congratulated that they pull it all off resoundingly; the cast is superb and had the audience clapping and stomping their feet during the show and giving a standing ovation at the end. A delightful drive, the Ivoryton is in bucolic Chester.

As long as I can enjoy wonderful productions like these, I don't miss my trips to New York during the summer. Come fall, however, despite an uncooperative hip and ankle, I will summon the energy to again sample some offerings in the Big Apple.

Another excellent source for short, stimulating classes with interesting people is the Institute for Learning In Retirement. A community-based group who share a love of learning. Classes are held in the afternoons, usually at Albertus Magnus College for a limited number of sessions. Join now for an annual fee of only $20 and you will then receive a listing of fall offerings. More at www.ilralbertus.org. Don't just sit there. Do something different.

Contact Jean Cherni, certified senior adviser for Senior Living Solutions and Pearce Plus, a helpful, full-service program for seniors contemplating a move, at jeancherni@sbcglobal.net or 49 Rose St., Apt. 510, Branford, 06405.

I'm reading: French, golf, yoga, pottery -- why not learn to do something new