Tag: social security

Understanding Identity Theft

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Jan Jordan Reverse Mortgage Identity Theft Colorado

 

What is Identity Theft?

 

According to the 1998 Identity Theft and Assumption Deterrence Act identity theft is when someone “knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law.”

 

The three most common types of identity theft are:

 

  • Financial identity theft (using another’s identity to obtain credit, goods and services)
  • Identity cloning (using another’s information to assume his or her identity in daily life)
  • Medical identity theft (using another’s identity to obtain medical care or drugs)

 

How does Identity Theft happen?

 

In today’s technology driven society, protecting your identity is more important than ever.  But don’t assume identity theft only happens online.  It can happen anywhere, anytime.  Someone could be watching over your shoulder as you fill out a form at your doctor’s office.  Another individual could be rummaging through your trash, hoping to find a tossed out credit card offer.  Your email program’s spam filter may not be blocking those emails from Phishing websites.  There are many ways to fall victim to identity theft, arming yourself with facts and prevention is key to protection.

 

How do I protect myself from Identity Theft?

 

  • Be aware of your surroundings.  When filling out forms that include private information, take a seat away from others when possible. Never throw out forms or paperwork that may have your personal information on them, always take these home with you and dispose of them properly.
  • Don’t toss out credit card offers or other junk mail that pertains to obtaining credit.  In addition, any other private information you have – bills, car registration, insurance documents, bank statements – should always be disposed of properly and NEVER put out with your household trash.  These items should be shredded or burned.  In addition, limiting the amount of junk mail you receive by “opting out” of mail distribution lists can vastly decrease your risk.  Opt out by calling 1-888-5-OPTOUT.
  • Never follow links to bank accounts, credit accounts, PayPal accounts, etc from an email.  “Phishing” emails may appear as a completely legitimate email from your bank or credit card company, warning you of unauthorized transactions or other alarming information.  These emails will include links that take you to a website that looks identical to your bank’s – but it’s not.  Once you enter your information into this “Phishing” site, you have given some of your most valuable financial information to a con-artist.  ALWAYS access your bank and credit accounts by entering their web address into your web browser, NEVER through a link.  Reputable companies will not contact you via email about such important matters.
  • Don’t respond to emails offering money in exchange for “helping” an individual transfer money into the country.  These are always scams and have proven to be very dangerous.
  • Password protect your computer and your wireless internet. Use firewalls and virus protection software.
  • Never give personal information to telephone solicitors or door to door solicitors.  Do not give out personal information over the phone unless you placed the call yourself.
  • Lock your car.  Identity theft via “glove compartment” information is on the rise.  Keeping your car locked can ensure you are not an easy target.
  • Don’t carry your Social Security card in your wallet or purse.  Purge expired credit cards, insurance cards, and ID’s regularly.  Keep these items at home in a safe place.
  • If you do not have a locking mailbox, do not mail payments using your mailbox.  Always take the mail directly to the post office.

 

What do I do if think I’ve been targeted?

 

Contact the Federal Trade Commission at 1-877-IDTHEFT or www.ftc.gov

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you.

 


Changes to Social Security for 2013

Posted on by janjordan

reverse mortgage colorado fort collins loveland windsor greeley berthoud

 

The beginning of 2013 brought about several changes to everything from health insurance to tax code to social security benefits.  While the majority of these changes have been small and will affect seniors very little, a few of them will directly impact recipients of social security benefits.  Here’s what to expect:

 

Extended online services: Many services are now available online that never have been before, such as: starting Social Security payments, accessing benefit verification letter and payment history, change of address, start/stop/change direct deposit information.  Access to this information will reduce the burden of Social Security offices nationwide by allowing workers to have conversations that really need to be done face to face, as well as reduce the burden on seniors who may have trouble getting around.  Online services can be accessed at www.ssa.gov/onlineservices

Continue reading “Changes to Social Security for 2013” →

Reverse Mortgage and the Alternatives

Posted on by janjordan
Reverse Mortgage

 

Home equity accounts for approximately 70% of a senior’s assets, not including social security or pension.  Often times tapping into this equity becomes inevitable when facing health crisis or financial restrictions in retirement.  Using home equity should be part of a larger financial plan and there are a few ways it can be incorporated.

 

Reverse Mortgage

 

A reverse mortgage is available to seniors 62 and older regardless of income or credit.  Homeowners who obtain these loans do not make monthly mortgage or loan payments but  instead receive either a lump sum of money or monthly installments paid directly to them based on the equity in their home.   The loan does not have to be repaid until the last borrower passes away, at which time there are options available to heirs.  The amount of the loan depends on the amount of equity in the home and the age of the borrowers – the older the borrower, the more money they can receive.  This is an excellent option for seniors on a fixed income, with questionable retirement funds, or declining health.

 

Home Equity Loan

 

A home equity loan also taps into equity by borrowing money against the home.  This type of loan will be processed as a conventional loan and income and credit restrictions will apply, as well as monthly payments will need to be made to the lender.  If income is fixed, it could be unlikely a senior will qualify for a home equity loan.  Any health or future financial concerns should be thoroughly thought through prior to taking out a home equity loan.  Loading up the home with debt during retirement can be risky and could result in loss of the home if the borrowers are unable to make their monthly payments.

 

Downsize

 

Another option would be to downsize all together by selling the existing home and moving into a more modest situation.  Depending on the amount of equity in the home, a homeowner may be able to sell the home for enough money to comfortably be able to make rent or mortgage payments for 10 to 20  years.  Just as with a home equity loan, this option could be risky for a person with health concerns as the funds set aside for housing could be needed elsewhere.

 

Before making any major decisions regarding how to effectively use the equity in your home, it is best to consult with a financial adviser and a reputable reverse mortgage lender.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

Should Reverse Mortgage be in your Retirement Portfolio?

Posted on by janjordan
Reverse Mortgage Colorado Financial Planning
Reverse Mortgage and Retirement

 

For the past quarter century seniors have easily managed to retire on three things: company pension plans, social security, and personal savings.  But with an uncertain economy facing us today and in the future, many baby boomers are taking a second look at their retirement portfolios.  Previously, tapping into home equity for retirement has been considered a last resort.  But should it be?

 

Both company pensions and social security benefits face much uncertainty down the road.  And if boomers have had the ability to hold onto any personal savings during the economic downturn, it likely took a hit as well.  But when adding home equity into the retirement equation, statistics show most baby boomers 51 and over have enough to retire comfortably.  So where does this leave reverse mortgages?

 

For seniors 62 and over, reverse mortgage is a feasible option, regardless of income or credit.  Homeowners can access the equity in their home and no repayment is due until the last borrower passes or permanently leaves the home.  For some retirees, it could mean the difference between living and living comfortably.

 

When looking down the road toward financial planning for retirement, ask yourself a few questions and determine if a reverse mortgage might fit into your Plan A or your Plan B.  Discuss it with your spouse and with your financial planner.  Learn the facts about reverse mortgage and how it will affect your loved ones after you pass.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

 

 

Can a Reverse Mortgage Benefit a Widow?

Posted on by janjordan

When a spouse passes, it’s a very difficult time for the widow and the family.  In addition to the emotional toll, it’s not uncommon to face a sudden and often unexpected financial toll.  After a spouse passes, it is more common than not that there will be a reduction or elimination of the deceased spouses pension or social security benefits. This can create a serious strain on the widow to continue to make mortgage payments, property taxes, homeowners insurance, home repairs, in addition to other daily expenses.

 

If you are a widow financially struggling without your spouse, a reverse mortgage can be of benefit.  Senior homeowners age 62 and over may qualify for a reverse mortgage, regardless of income or credit.  A reverse mortgage does not have to be repaid as long as the homeowner continues to live in the home.  This can make it possible for a widow to remain in the home without the financial strains that may be present otherwise.

 

If you are a married couple considering a reverse mortgage, you can find some helpful tips here.  You can also learn more about what happens to your home after both spouses pass away here.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

 

Home for the Holidays and Reverse Mortgage

Posted on by janjordan

While Christmas 2012 turned into New Year’s 2013, many families came together to celebrate the holidays.  Adult children enjoyed spending time with their aging parents or relatives.  Grandchildren and great-grandchildren had their cheeks pinched and were forced to eat spoiled left overs from the fridge (we’ve all been there, right?)  For some spending time with family is an encouraging sign of many happy years to come…but for others, it can be a time that raises concern about health or finances and questions about how aging  parents will continue to cope.

 

Concerns such as this are very common around the holidays.  To better guide you in the right direction and ultimately make the best decision possible, here are some questions to ask yourself:

 
• Are they able to get around by him or herself? Are there stairs in the home?

 

• Is this person able to take medications without assistance? Is there a health concern that would require more regular supervision, such as Alzheimer’s or Parkinson’s?

 
• Is your parent able to manage mortgage payments, home-owners insurance payments, and property taxes. Is the home outdated and in need of frequent repairs – such as a furnace, roofing, electricity?

 

• Where is this home located? Is it in close proximity to relatives, hospitals, etc? Or is it secluded and away from town?

 

• Is this person lonely? Has he or she suffered the loss of a spouse? Does he or she have a solid social group or close friends?

 
Based on your answers to these questions, aging in place may be an option. If financial strains exist surrounding the current mortgage, a reverse mortgage may be an option. Reverse mortgages allow homeowners age 62 and older to access equity in their home without concerns about income and credit. The homeowner retains the title and remains in the home. With a reverse mortgage homeowners can lessen the financial burden of mortgage repayment and can even receive their funds through a lump sum allowing for any necessary home repairs or improvements to be covered financially. All reverse mortgages are government guaranteed with an FHA backed loan and no repayment is due until the last borrower passes away or permanently leaves the home. At that time there are several options that include keeping the home in the family. If selling the current residence and moving into a new home is a more reasonable route, reverse mortgage may still be an option.

 
More information can be found specifically about how a reverse mortgage may affect adult children here.   It is especially important to work with a reputable lender and watch our for scams if parents or loved ones are considering a reverse mortgage.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

Reverse Mortgage and Retirement Financial Planning

Posted on by janjordan
Reverse Mortgage Colorado Financial Planning
Reverse Mortgage and Financial Planners

 

When financial planners counsel retirees on how to best leverage their retirement, social security, and assets, considering a reverse mortgage is often not part of that conversation – but this is beginning to change.

 

As the myths of the industry are laid to rest, many professionals are beginning to better understand how reverse mortgage can be used as a financial planning tool for seniors on a strict budget.  These reverse mortgages can often mean the difference between getting by and living life.

 

In a recent Reverse Mortgage Daily article financial planner, Dr. John Salter, discusses his experience in studying the ins and outs of  reverse mortgages – and eventually understanding why they should be part of the conversation.  Dr. Salter holds seminars for other financial planners and says reverse mortgage is always a hot topic.  He expresses the need to alleviate misnomers in the industry and for his colleagues to re-learn everything they once thought they knew.

 

A few tips for financial planners:

  • Seek out and work with a reputable reverse mortgage specialist who has strong ties to the community, lends from an organization that is a member of the Better Business Bureau, and is associated with the National Reverse Mortgage Lenders Association.
  • Make sure you fully understand the information you may be offering your retiree client.  With the amount of misinformation within the industry, if you are not 100% sure of an answer, call your trusted reverse mortgage specialist to ensure the information you are providing is accurate.
  • Communicate with adult children who may have concerns and make sure they fully understand the process from A to Z.  Eliminating misinformation is key.
  • Remember, reverse mortgages are not one-size-fits-all.  Be creative and comprehensive when considering adding a reverse mortgage to a long term retirement plan.  And don’t hesitate to contact a reputable reverse mortgage specialist if you are on the fence.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you.