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Thread: The Lust For Boomers' Money

  1. #31
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    Quote Originally Posted by Madeline View Post
    No, it isn't. A reverse mortgage is a sale of your home at a below-market rate, because the buyer will not take full possession until you and your spouse depart the premises, for the grave or a nursing home. The sales proceeds are paid to you in monthly installments, and these payments cease once full possession is transferred to the buyer.

    Arguably, this is a form of life insurance. As such it is regulated by the states, not the federal government, and realistically, it isn't regulated by any government agency interested in protecting YOU.

    There is nothing to guarantee. If the buyer defaults on the monthly installments, they have breached the agreement and the contract is void (or voidable).

    What needs regulation, but will never get it, is the math. If I sell a $500,000 house at age 75 to a buyer in exchange for the promise of $5,000 per month until I die, I have just been robbed.
    Ms. Madeline,

    Or not:

    https://www.nytimes.com/1995/12/29/w...ment-heir.html

  2. #32
    Veteran Member bajisima's Avatar
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    Quote Originally Posted by Thx1138 View Post
    The idea of using a house as an "investment" is in part what got us here. It would be fine if wages kept up, but they haven't and kids these days are saddled with much more debt than we were.

    The result will be an overall decline in property values and also a decline in new housing.

    So, the retirement nest egg that many are counting on, ie: equity in their homes could rapidly deteriorate.

    I like to reminisce about "the good old days", but when I really ask myself if I would like to go back to that time in my life, I'm glad I'm almost retired, lol.

    But yes, expect vulture capitalism to take advantage of people finding themselves in desperate situations, it is always the way.

    Thx
    Went to a financial planner a decade or so ago and he told us that people today in their 30s-50s with kids will need to save tons and tons of money to survive retirement because he didnt believe homes would be the "piggy bank" most relied upon. Boomers bought many of their homes for 20K and they have risen to 200-300K or more, enough to sell and retire comfortably. Now thats not happening and will get worse as millennials dont intend on buying big homes or have big families. We could be looking at soup kitchens and poor houses again for seniors in another 20 years if that happens and most companies dont offer retirement anymore.
    Thanks from Thx1138 and Madeline

  3. #33
    Bizarroland Observer Thx1138's Avatar
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    Quote Originally Posted by bajisima View Post
    Went to a financial planner a decade or so ago and he told us that people today in their 30s-50s with kids will need to save tons and tons of money to survive retirement because he didnt believe homes would be the "piggy bank" most relied upon. Boomers bought many of their homes for 20K and they have risen to 200-300K or more, enough to sell and retire comfortably. Now thats not happening and will get worse as millennials dont intend on buying big homes or have big families. We could be looking at soup kitchens and poor houses again for seniors in another 20 years if that happens and most companies dont offer retirement anymore.
    What some people seem to forget... sure, your $20K house went up to $300K over the years and HAS been a reasonably good investment when you consider $20K to $300K, the money math.

    But, they forget that while their house appreciated, so did all the others, so they can sell their $300K house and buy... another house, about the same kind.

    Yes Baji, rather than try and save an ever increasing amount I will probably never get close to, instead I am trying to reduce retirement costs, daily costs as far as possible.

    Not needing money in the first place is the most solid kind of "wealth."

    Thx
    Thanks from Madeline

  4. #34
    Veteran Member Madeline's Avatar
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    Quote Originally Posted by bajisima View Post
    Went to a financial planner a decade or so ago and he told us that people today in their 30s-50s with kids will need to save tons and tons of money to survive retirement because he didnt believe homes would be the "piggy bank" most relied upon. Boomers bought many of their homes for 20K and they have risen to 200-300K or more, enough to sell and retire comfortably. Now thats not happening and will get worse as millennials dont intend on buying big homes or have big families. We could be looking at soup kitchens and poor houses again for seniors in another 20 years if that happens and most companies dont offer retirement anymore.
    This stupidly ignores the REAL value of a mortgage-free home: security. Freedom from the horrors of homelessness.

  5. #35
    Veteran Member Madeline's Avatar
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    Quote Originally Posted by Thx1138 View Post
    What some people seem to forget... sure, your $20K house went up to $300K over the years and HAS been a reasonably good investment when you consider $20K to $300K, the money math.

    But, they forget that while their house appreciated, so did all the others, so they can sell their $300K house and buy... another house, about the same kind.

    Yes Baji, rather than try and save an ever increasing amount I will probably never get close to, instead I am trying to reduce retirement costs, daily costs as far as possible.

    Not needing money in the first place is the most solid kind of "wealth."

    Thx
    I always, always, always look to reduce my utility bills when remodeling. Taxes and utilities are the only remaining threat to my right to occupy this house until I die.

    Until I become addled enough that some fraudster steals my home.
    Thanks from Thx1138

  6. #36
    Bizarroland Observer Thx1138's Avatar
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    Quote Originally Posted by Madeline View Post
    This stupidly ignores the REAL value of a mortgage-free home: security. Freedom from the horrors of homelessness.
    I used to say that when I saw so many people give up their home because they are a bit "underwater."

    They have to realize the costs associated with such upheaval and even homelessness itself is not free, it can cost a bundle!

    You are everyone's victim, everyone wants their little piece of you on your way down.

    Again, "investment" mentality.

    Thx
    Thanks from Madeline

  7. #37
    Established Member soupnazi's Avatar
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    Quote Originally Posted by Madeline View Post
    Reverse mortgages, home warranties, prepaid burial plans, tax planning, vehicle leases, Medicare planning, greedy relatives.......shit! Shit! Shit!

    Boomers hold the VAST majority of the wealth still owned by Americans who are not rich, and we are being chased down the street by robbers.

    Ay ye ye. This is going to work, too. In time, we'll get sicker, less alert, needier, more frightened...we are all delicious prey.

    So, any ideas? Should we pass laws punishing more harshly or outlawing the most predatory financial products? Make it easier for our children to act as a second set of eyes on our money?

    There's a huge problem, and not even a glimmer of a solution.

    Your thoughts?
    Not one example of a thief is listed in your post.

    It is very simple, tell them all to leave you alone and you do not want reverse mortgages or home warranties or whatever.

    Has it occurred to you that none of them can get your money without your consent?

    Unlike the government which uses force to steal money through taxation from us all which you iromically ignore.

  8. #38
    Veteran Member Madeline's Avatar
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    Quote Originally Posted by soupnazi View Post
    Not one example of a thief is listed in your post.

    It is very simple, tell them all to leave you alone and you do not want reverse mortgages or home warranties or whatever.

    Has it occurred to you that none of them can get your money without your consent?

    Unlike the government which uses force to steal money through taxation from us all which you iromically ignore.
    You are aware a person with Alzheimer's has the legal power to consent to a contract for YEARS before the disease steals all of her capacity? Depriving an adult American of capacity to consent is rarely successful.

    What would you feel about a voluntary program? Some document I submitted to the county property clerk, so that my.home cannot be sold (even if I consent) until a trustee, etc. has looked at the deal?

  9. #39
    Shitposting Rank 4 Missle Command Champion johnflesh's Avatar
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    Quote Originally Posted by Madeline View Post
    You are aware a person with Alzheimer's has the legal power to consent to a contract for YEARS before the disease steals all of her capacity? Depriving an adult American of capacity to consent is rarely successful.

    What would you feel about a voluntary program? Some document I submitted to the county property clerk, so that my.home cannot be sold (even if I consent) until a trustee, etc. has looked at the deal?
    You can resolve that, like burial plots early on in life.

    I'm not saying its right that elders have to dodge all sorts of angles, but its a reality and so is protecting yourself.

    There are pro-bono and volunteer elder law advocates who attempt to educate about this - but you have to seek it out. It's not exactly exciting reading front-page news.
    Thanks from Madeline

  10. #40
    Veteran Member Madeline's Avatar
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    Yes, we can. Horrifyingly, the ultra-rich are far more vulnerable. After her death at age 105, Brooke Astor's son and her lawyer were both convicted of financial abuse, neglect, etc. Sent to prison, too. Testimony about the conditions Mrs. Astor was forced to endure are enough to make your skin crawl.

    And she is hardly unique in her end of life tortured state.

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